After CEO Mel Karmazin managed to merge Sirius Satellite Radio and XM in 2008, the company's stock (Nadsdaq: SIRI)was poised to go above its high of 9 dollars per share. That’s when the shares were allegedly targeted by aggressive hedge funds that drove the equity down to a horrifying 5 cents. “Stock Shock” explores the company's roots, and explains how naked short selling and poor SEC regulation may have caused the stock’s demise.
One of the most surprising facts behind the birth of the company is that Sirius Satellite Radio was founded by a transgender woman. Tilmmakers interview the mother of satellite radio: Martine Rothblatt--formerly known as Martin Rothblatt. "She literally has an understanding of science that ranges from the vastness of the stars, to the microscopic world of cellular biology," says the director. "She is one of the most interesting and evolved people I have ever met."
This financial film "Stock Shock" also exposes a technique known as naked short selling, which has resulted in the collapse of the stock value of some of America's most famous and promising public companies. In the movie, industry expert Bud Burrell says, "This fraud has wiped out thousands of companies, millions of jobs and billions of investment dollars. No part of the American economy is unaffected." "Stock Shock" explains the process of market manipulation while weaving in the tale of two satellite companies: Sirius and XM. It is definitely an education.