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While Sirius XM Radio (SIRI) shares have jumped 7% in the past two sessions on speculation...

While Sirius XM Radio (SIRI) shares have jumped 7% in the past two sessions on speculation that Liberty Media (LMCA) will buy out the company, Canaccord Genuity doesn't think it will happen. "LMCA can monetize its stake without increasing it," the firm says, adding it would "be surprised if LMCA spent $1.5B for an additional 10% after getting 40% for less than half that."
Comments (9)
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    All this banter has popped SIRI price and 2.40 isn't cheap ! Malone will win and the real opportunity is LMCA ! Their 30 to 35% undervalued an they need to buyback. That is where I'm going on a small market correction !
    3 Apr 2012, 09:23 AM Reply Like
  • Roxieanne
    , contributor
    Comments (472) | Send Message
     
    Has anyone done an extrapolation on what the spin off value of the shares that Malone would spin off would be to LMCA shareholders?

     

    For example , if an LMCA shareholder received 100 shares spun off of Siri by LMCA what would the value of that 100 shares be.

     

    This leads to which one should a buyer buy based on the concept of LMCA gaining control of Siri? Buy Siri or buy Lmca?
    3 Apr 2012, 01:34 PM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    Rox, I listened to Bloombergs number 1 analysist on SIRI an industry and he said buy LMCA as SIRI has reached it's full value or above it's value from this noise an isn't worth 2 bucks ! LMCA is way to play and Malone should buyback..
    3 Apr 2012, 01:50 PM Reply Like
  • Roxieanne
    , contributor
    Comments (472) | Send Message
     
    Who is the Bloomberg Analyst? Would like to read his detailed analysis.
    3 Apr 2012, 03:28 PM Reply Like
  • FarLeft
    , contributor
    Comments (129) | Send Message
     
    You have to ask yourself why is Liberty undervalued? Sirius will pop first with any buyout news as the offer from Liberty will be with a premium to garnish FCC and DOJ approval and access the SiriusXM NOLs. After this Liberty will appreciate quickly as SiriusXM with the ownership issues resolved is also undervalued so the spinoff tracking stock will have tremendous upside. IMHO Liberty believes that the cost basis for the 40% of SiriusXM they have was a once in a lifetime deal and any additional shares purchased will be expensive and Liberty knew they would pay for expensive additional shares to gain control of Sirius after due diligence for the 40% stake, its all part of the plan. SiriusXM sells itself I bought a subscription, loved it and then bought the stock and there are millions of retail owners like me who would sale there stock, enter a class action suit against the Board and cancel service if management whomever it is does the wrong thing regarding shareholders. This leverage as well as SiriusXM being a cash machine makes SiriusXM a buy.
    5 Apr 2012, 10:20 AM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    NOT.. SIRI is bankrupt and Liberty is a creditor an is calling in it's collateral.. I hope you make money ,but, for safety sake I'd rather own Liberty at this price. But , I think the entire market has run to fast an to far. I'll be patient ! buena suerte
    5 Apr 2012, 10:25 AM Reply Like
  • FarLeft
    , contributor
    Comments (129) | Send Message
     
    Just remember for Liberty to really "call in its collateral" it needs 51-80% ownership of SiriusXM, the additional 11-40% will cost $1-5 Billion, the FCC and DOJ have to agree to SATRAD license ownership changes and shareholders will need to approve.......any of this is years away if even feasible. In this time SiriusXM free cash stockpile will balloon. I hope you make money as well. I am betting on logic and fundamentals.
    5 Apr 2012, 10:50 AM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    SIRI losses money. XM lost money. Mel belongs in a lunny home. He went from an industry giant to a pimp IMHO.

     

    I was under the belief there is a credit deal and the 40% is the colletral. Not just an owenership of stock,so, Malone wouldn't go to court unless it was so.

     

    So, the US gov had to allow the merger and I would never pay for radio and many must feel as I do or SIRI would do better.

     

    PS As I stated,, I think Liberty is safer ,but, not in it unless it gets cheaper,but, won't touch SIRI.. It acts like a pump an dump symbol.
    5 Apr 2012, 10:57 AM Reply Like
  • FarLeft
    , contributor
    Comments (129) | Send Message
     
    DaLatin, You actually believe SiriusXM having over $1 Billion dollars and growing in free cash flow is losing money? That is an oxymoron..... I also disagree, I see Malone as the pimp and Mel as his best h0.....dumbing down a little.
    11 Apr 2012, 12:57 AM Reply Like
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