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Stephen Faulkner

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  • Sirius XM Set To Resume Share Buybacks [View article]
    Well I won't receive dividends on options. Yeah they are usually adjusted but if they are small they might not be, so I wouldn't receive benefit.

    The shares I just bought using a loan (everyone will tell me it's a stupid idea like the stuff I bought in 2009 on loan so I won't go into details....) are just shares though and not in a tax free account.

    Div stocks / reinvesting don't necessarily have good performance because of the dividend but more of the strategy (in my opinion) of choosing a mature company that offers more stability and less volatility and allows the dividend to compound on what is (usually) relatively lower share price appreciation. It's more because it is a disciplined and long term play where one doesn't run around like a chicken with their head cut off about the short term.
    Apr 17 11:02 PM | 1 Like Like |Link to Comment
  • Sirius XM Set To Resume Share Buybacks [View article]
    But his approach should work long term. Might not short term. But that's why you take that approach, so you can add when you feel the share price is undervalued for your longer term.

    And if he's a permabull4life, one would hope it's long term... (cuz I don't wish anyone a short life :P ).

    Anyways... a rational approach often doesn't work in any stock's "land" on any given day. This is not something which is SIRI specific, and is why you have conflicting opinions from individuals all over the place, and why things like CNBC / blogs / "motley fool" etc exist... to capitalize on that madness.
    Apr 17 10:55 PM | 1 Like Like |Link to Comment
  • Sirius XM Set To Resume Share Buybacks [View article]
    Depends where you put the quarter right? But if one uses that argument then it can be spun back and the question asked why the dividend recipient remained in SIRI when they would not put the div back in SIRI and would have invested it elsewhere where they got a better return. Why would the div recipient not simply sell SIRI and buy whatever they were putting the div in?

    Horrible argument that the dividend can make more elsewhere. That's a hindsight is 20/20 thing. An investor can simply sell off whatever % they want as a dividend and buy whatever it is they would have bought with the dividend too. LTCG and Dividends are taxed the same I believe. Heck in the case that cost basis wasn't a nickle or something I'd rather pay tax on the gain and not the entire amount of the div.

    Again, buyback is a longer term issue. It's an investment of the company back into itself, and I'd argue that it is absolutely impossible to say a few months after a portion of the total expected buyback completes, whether or not the buyback has been a good or a bad one.

    Shareholder value can be enhanced by a buyback and over the longer term (not shorter, trader term) it should be reflected in share price.

    And I know I often use that label "trader." I don't intend it to be a negative thing. The market needs all types :) Traders provide liquidity, but the investor's longer term objectives often don't mirror the trader's shorter term objectives. In this case higher share prices that stick during a buyback are beneficial for traders / short term, or investors who seek to sell soon, but are detrimental to longer term investors as it means 'their' buyback will be paying a premium to the short term guys.

    The forest / trees thing people often mention isn't a huge deal. You state clearly you are a trader. I'd argue those trees are massively important to a trader... perhaps moreso than the forest. On stuff I *trade,* I seldom care about the long term of the company (which is why I don't trade SIRI, because the two views conflict)... sometimes I don't even care about tomorrow for the company I am trading. On stuff I trade I want money NOW. Heck if it's just a 5 minute technical trade on a Friday afternoon I don't even care about the trees :P

    Ok I'm gonna stop there... cuz I'm annoying myself with all this. I can't imagine you poor people reading it ;)
    Apr 17 09:52 PM | 2 Likes Like |Link to Comment
  • Sirius XM Set To Resume Share Buybacks [View article]
    I just *try* to put myself in the shoes of LMCA here. (nobody else, nobody else matters). What's best for LMCA on all this? Certainly not higher pricing on SIRI *OR* LMCA right now... that helps nothing when you are trying to buy the companies back, and both are in buyback periods.

    There is significant benefit to lower share pricing in the face of a large scale buyback. There is even more benefit to lower share pricing when a company that is buying back its own stock is made up mostly of a company that is... buying back its own stock.

    The conspiracy theory stuff is a huge waste of time, but it's reasonable to think, at least, that there are significant LONG TERM benefits to the share prices of LMCA and SIRI both being as low as possible during this time. Remember the concerns of "will they be able to buy back enough so LMCA can sell back?" all that talk of overleveraging, ratings downgrades... how many shares are they gonna be able to buy back if they run the price up, etc etc.? Don't read those so much anymore.

    So long as the company does well, I'm thrilled with lower pricing. $3.01 was my trigger point the other day for using borrowed funds to buy SIRI for the first time since 2009. People are looking for ghosts right now based on the share price... as if because it's in the low $3's then it's a bad deal or should be avoided but the same company at $4 was great? Someone find me a tack hammer please so I can start thumping skulls. I see current pricing like $1.27 in 2011 or $1.80 in 2012. Time will tell if I have to eat said tack hammer in a couple years.... :)
    Apr 17 09:33 PM | 3 Likes Like |Link to Comment
  • Sirius XM Set To Resume Share Buybacks [View article]
    "Thanks. An interesting turn of phrase. Hindsight is 20-20, but by looking in the rear-view mirror, it seems clear to me that we would have been better off with less debt and a dividend."


    If people want a dividend, why not simply reduce your shares and pay yourself ? If you are hoping for, say, a 5% dividend, liquidate 5%. There's your dividend.

    Assuming things are long term it's taxed at the same rate, div or LTCG.

    Maybe it's my age but I think dividends are lousy. You can break that piece off yourself if you want. I'd much prefer the company buy its own shares back... I don't have to pay taxes that way up front.
    Apr 17 09:11 PM | 3 Likes Like |Link to Comment
  • Sirius XM Set To Resume Share Buybacks [View article]
    You sure they screwed up? Or were those things there on purpose to remove the question of "why did they stop buying back?"

    Not one for conspiracy theories but I find it horribly difficult to believe that restrictions like this were MISSED by the many who review this stuff. :P Come on now...
    Apr 17 08:52 PM | 5 Likes Like |Link to Comment
  • Sirius XM Set To Resume Share Buybacks [View article]
    The problem with taking assessment of a buyback in a very short term period is that it will look good / bad early on. You can't judge a buyback's effectiveness until enough time has elapsed to properly gauge whether or not the company received a return on its investment in itself.

    Saying the buyback has not been managed well because the average purchase price is above the current share price is extremely short sighted and completely disregards what a buyback is supposed to do longer term... reduce share count below what it WOULD be if the buyback was not in place, and receive a return on the company's investment in itself over and above debt costs coupled with the loss of what it could have received had it simply held the cash and brought in interest in the cash. That takes time to play out... not several months but several years (sometimes a decade or more).

    Sure, buybacks create some support / short term buying pressure in the stock while they are active, and when the buyback is done or halted share prices often fall so they immediately LOOK like they were not managed well... but the short term movement is not what a buyback is there for. It's not to run the price.

    That being said SIRI has done this buyback well. It did not use the buyback and extend the share price beyond historical trading ranges, and the pause has allowed the share price to drift to the bottom end of the historical range, just in time for round 2 to start, now with a bunch of resistance above which should translate into required selling pressure so that round 2 doesn't run the price.

    Sure they could have fired off a quarter to everyone and loaded the company with debt with nothing to show for it, but the share price would have subtracted the quarter on the div, and might be sitting at $2.75 as a low instead of $3.
    Apr 17 08:49 PM | 3 Likes Like |Link to Comment
  • Sirius XM Set To Resume Share Buybacks [View article]
    No, a year ago means a year ago. He did not say when the stock was over $4, he said a year ago. That's a crystal clear statement. Not "about a year ago" or "approximately a year ago" but "a year ago."

    I was not aware he meant when the stock was over $4 for a few days last October. When did he tell you this? I would assume if one meant "6 months ago" they would say "6 months ago" and not "a year ago."

    My response is in absolutely no way a personal attack. I am trying to understand how one can be long "a year ago" and now be down by $55K when the share price is presently above where it was "a year ago."

    Perhaps he attempted to trade and made mistakes (which would not be an issue with management). His profile indicates that he has bought / sold / bought more, etc., and that might offer explanation as well.

    His profile also says he is "getting tired of the delay." An increase of 10X+ value from $0.33 in less than 5 years isn't really a delay. That's an exceptional return. So perhaps the comments are simply exaggerations borne out of frustration due to unreasonable expectation and extreme impatience?

    "No, don't answer that."

    Answered it. The "like" button is below for your clicking pleasure.
    Apr 17 08:37 PM | 39 Likes Like |Link to Comment
  • Sirius XM Set To Resume Share Buybacks [View article]
    A year ago the share price closed at $3.00 per share. Today it closed at $3.14.

    The only way you could be short $55K from then to now (assuming you entered a position and then held) is if you were holding on to a short position.

    I doubt management is going to be able to explain how, if you went long at $3, you are down by $55k at $3.14 :)
    Apr 17 07:34 PM | 5 Likes Like |Link to Comment
  • Sirius XM: At $3.15, Still Trading In Tandem With Liberty At $125 [View article]
    It was. It deviated between the SIRI drop and the deal. I did talk about this several times and why this made for the opportunity for Liberty to present that offer since the stocks exited parity trade...
    Apr 16 08:27 PM | Likes Like |Link to Comment
  • Sirius XM: At $3.15, Still Trading In Tandem With Liberty At $125 [View article]
    It was. It deviated between the SIRI drop and the deal. I did talk about this several times and why this made for the opportunity for Liberty to present that offer since the stocks exited parity trade.
    Apr 16 08:27 PM | Likes Like |Link to Comment
  • Is Telematics A Sirius Mistake? [View article]
    The inability to invest in individual stocks is a killer. Pardon my language but why the hell would ANYONE agree to work for any company that limited their individual freedoms in such a fashion? I get why the street does it but personally I think it's madness to consider it. Money is easily made without being locked into such agreements / prohibitions, and the removal of one's ability to invest in the market is a huge drain on one's financial future, in my opinion... This is especially so where one spends such a massive amount of time writing about the market and possibly researching it.

    I believe TheStreet $#*+canned the nonsense "Director of Social media" position though, so it's likely a non issue.
    Apr 16 04:03 PM | Likes Like |Link to Comment
  • Sirius XM: At $3.15, Still Trading In Tandem With Liberty At $125 [View article]
    Because Liberty is, in majority, SIRI.
    Apr 16 03:53 PM | Likes Like |Link to Comment
  • Is Telematics A Sirius Mistake? [View article]
    The two of you waste too much of your "alive" time arguing :P
    Apr 16 12:33 PM | Likes Like |Link to Comment
  • Sirius XM: At $3.15, Still Trading In Tandem With Liberty At $125 [View article]
    No that would make them look pathetic in the short term ;)
    Apr 15 03:50 PM | Likes Like |Link to Comment
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