cos1000

Sirius XM Works Hard to Reduce February Debt

This company and Mel do not need the cover of the financial meltdown as an excuse for a ridiculously low stock price. Mel & Company lost investors money before the financial melt down and continues to do so currently even though the company's performance and the future may be brighter. With that said, I am still a very wary investor in this stock. I have many more shares now, with very little equity for my faith and trust in the company's ability to take care of the common shareholder.

I hate to keep bringing up the merger debt but, it was Mel that took on $550M of New debt at the time, while loaning shares of the company (our company), to Bond Holders of this debt. 260 Million shares to be precise. So that these New Bond Holders, not anyone else, could Short the stock. He called it “Ugly”,….. and I have learn to call it “previously undisclosed”.

With the stock price where it was at the time, we were not even able to Hedge our own long position by Shorting the stock ourselves. This convertible bond debt was additional debt, added to the balance sheet without shareholder knowledge or any discussion that it would be needed to do the deal. Then to add insult to injury, he used existing share holder equity to support the issuance of this debt, immediately reset the stock price to $1.50, and then loaned the shares to the new Bond Holders to further diminish shareholders equity. This Sophisticated Convertible Arbitrage, having Bond Holders short the stock mercilessly down to current levels, is All Mel's -working hard- for us common share holders..

Many thought the deal, after so many months of DOJ and FCC inaction and deterioration of SP for both companies, was too expensive as previously established, but add this New Debt and the Toxic structure of it to the pie, and here we are. The recent multi-billion dollar write down in Goodwill is as far as one needs to go to see if the value paid is the value assigned after the merger.

So in this Holiday Season, the hope for a miracle is about all that is left while further dilution continues. Company silence regarding future plans are adding to insecurity among us retail investors. The SP is holding around .12 because the Pie has been cooked, and the dilution is already there. So please lets hope for what's left of our Hard Worked dollars, that there is still a miracle left in this company's future. Work Hard Mel because we deserve better than the coal in our stocking that you have left for the loyal shareholder so far..... ho, ho, ho.......