cos1000

Citi: Sirius XM Is “Massively Undervalued”

I really don't see Citi's Wible doing much to move this stock. Beyond all of the products and possible services, until the Balance Sheet can be better secured, unfortunately I don't see the stock price doing much. What we didn't know before the merger was the significance of Debt Refinancing, perceived or in reality. Sirius XM's "Convertible Arbitrage" on the night of the merger drew my attention to this fact, like a "Laser". Sirius has 300 million in convertibles due in Feb, 09 with a 4.41 / share. XM's Credit Facility "expires" in May, 09, that's 250 mil and 100 mil that need to be renegotiated for extension or paid.

All of the partnerships will be great and the additional revenue is more than welcome, but until the company can convince the street that these two items in total are taken care of without further dilution of shares, the stock will not move anywhere fast. When it moves it will move on emotion and the Cramer and Weinkes will beat it back with the outstanding Debt Issues. This is the real battle that needs to be fought to move this stock's price up. Not Apple and Ipods.

I am long Sirius XM since 2002, I own over 30,000 shares, and 2009 will be the year of Debt Resolution or Not. I will hold on tightly to my shares looking for more than "Window Dressing" around this Debt Issue. As a stockholder I want some answers not White Wash.