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  • How Much Should Liberty Offer For Sirius XM? [View article]
    Mr. Osborne,
    Many thanks for your article today.
    I have a question and some assumptions about the proposed share exchange in which each SIRI share would be exchanged with LMCA series C shares at the rate of 0.076.

    As an example, would this mean that 1000 SIRI shares X 0.076 = 76 LMCA (C)shares?

    As an example, if 1000 SIRI shares today are worth X $3.86 = $3,860.00
    What would the price of LMCA (C) share have to be to equal the price of SIRI share that was exchanged?

    Would LMCA (C) share price have to be $50.79 to equal $3,860.00? (that is $3860/76 shares=50.79), or alternatively, the 76 LMCA C shares X 50.79= $3860.00 the current market value of SIRI 1000 shares that were exchanged at the rate of 0.076?

    If this approach is valid, could we conclude that if LMCA C series share goes below $50.79, SIRI shareholders would have a loss?

    These are several questions, and I appreciate your comments on them.
    Jan 8, 2014. 11:55 AM | Likes Like |Link to Comment
  • Attention Sirius XM Investors: 'I Want A Premium' Has Never Been Stated By John Malone [View article]
    Mr. Faulkner, do you see the implication in the middle of the second paragraph?
    "...for the benefit of LMCA shareholders". No mention of how this might be for the benefit of SIRI shareholders!

    "...will put the Reporting Person in a better position to enhance the value of its interest in the Issuer for the benefit of the Reporting Person’s shareholders..."
    Sep 20, 2012. 11:03 AM | Likes Like |Link to Comment
  • Attention Sirius XM Investors: 'I Want A Premium' Has Never Been Stated By John Malone [View article]
    In considering the issues of who will receive a so-called "premium" in what is transpiring vis-a-vis SIRI and LMCA I would like to point out how Liberty Media Corporation stated its intentions and plans when it filed the following Form with the SEC on September 13, 2012.
    Although the term "premium" was not mentioned, its implication, in my view, is clear. I suggest that SIRI investors read that report.

    Note: "The Reporting Person" refers to Liberty Media;
    "The Issuer" refers to Sirius XM.

    Form SC 13D/A Amended General Statement of Beneficial Ownership
    Filed Sep 13, 2012

    "As previously described in Item 4 in Amendment 3 to the Liberty Schedule 13D, on August 15, 2012 the Reporting Person filed with the FCC an application for consent to transfer de jure control of the Issuer..."

    "The Reporting Person acquired the Purchased Shares because it believes that the acquisition of additional shares of Common Stock is consistent with the Reporting Person’s intent to assert control over the Issuer. In addition to providing the Reporting Person with the opportunity to increase its equity interest in the Issuer at an attractive price, the Reporting Person believes that the resulting increase in its equity interest in the Issuer will put the Reporting Person in a better position to enhance the value of its interest in the Issuer for the benefit of the Reporting Person’s shareholders by, among other things, influencing management of the Issuer or pursuing a transaction with or involving the Issuer or the Reporting Person’s interests in the Issuer."

    "On August 8, 2012, the Reporting Person announced its plan to spin-off to its stockholders a subsidiary that will hold certain businesses, assets and liabilities, of the Reporting Person, including the Reporting Person’s interest in the Issuer. The spin-off is subject to customary closing conditions, and the Reporting Person currently expects to complete the spin-off in late 2012."

    "The Reporting Person intends to continuously review its investment in the Issuer, and may in the future determine (i) to acquire, subject to applicable laws, orders and regulation, additional securities of the Issuer, through open market purchases, private agreements or otherwise, (ii) to dispose of all or a portion of the securities of the Issuer owned by it or (iii) to take any other available course of action,...."
    Sep 20, 2012. 10:35 AM | Likes Like |Link to Comment
  • Sirius XM: A Buying Opportunity With Karmazin's Announced Sales [View article]
    With each new development and continuous surprises I feel more justified in the following comment which I wrote on August 17th.

    "The uncertainty in my mind as to the status and operation of SiriusXM surrounding Liberty Media potential takeover of SIRI Makes me satisfied in my decision to sell all my holding in SIRI."
    Aug 17 11:31 PM | 0 Likes |Report Abuse |Link to Comment
    Aug 31, 2012. 10:45 AM | Likes Like |Link to Comment
  • Impact Of Share Buyback On Sirius XM Debt Rating [View article]
    It seems to me that we have been having discussions and analyses in the midst of so many unknowns and secret dealings.
    We have not put our analysis of SIRI and LMCA in its historical context. Malone goes through a variety maneuvers including "forward contracts" with secret sellers of SIRI stocks, Karmazin and the officers of SIRI sell many millions of their SIRI stock holdings. Any discussion on who gets a premium if LMCA gets full control of SIRI seems directed toward being ambiguous at best.

    In order to put our discussions on this topic in their historical context I have listed three quotes below which demonstrate how legitimate and honorable deals are usually made or offered to the public. These quotes are about the acquisition of Burger King in 2010 by BG Capital, and the offer to acquire Yahoo by Microsoft Corporation in 2008.

    These are only two examples of many such cases of up front offers to shareholders of companies that find themselves being in a position that SIRI shareholders find themselves in these days. No secret sellers, no uncertainties as to the objectives of the new owners if they succeed in their bids.

    That is very different from what SIRI shareholders are facing now. Is it "Reverse Morris Trust"; is it to "increase indebtedness" of SIRI so debt would finance future dividends even if that would weaken the company ? or what is intended in terms of the future of SIRI and its public shareholders? If we can get clear answers as the following examples of clear and open dealings would provide then I would say, with all due respect, Mr. Malone and LMCA come out and openly state what is going to happen to the present public shareholders of SIRI!

    Some might argue that the market should determine the value of SIRI stocks. But I would remind them that Microsoft did not leave it to the market to determine the sale price of Yahoo. Yahoo rejected that offer knowing exactly what they were giving up. Burger King shareholders knew exactly what BG Capital was offering and they (including me) sold with full knowledge of the facts.

    What are the facts in SIRI--LMCA case? Most analysts are giving opinions contingent on "how LMCA may affect future operations of SIRI". Why should SIRI shareholders have to face such contingencies?

    The following are relevant illustrations:

    1--From Wikipedia, the free encyclopedia:

    "In late 2010 3G Capital of Brazil acquired a majority stake in BK in a deal valued at $3.26 billion (http://bit.ly/Obbyu3)."
    2--From CBS News, September 2, 2010:

    "Burger King Holdings Inc., the nation's perennially No. 2 hamburger chain, said Thursday that it is selling itself to little-known private equity firm 3G Capital in a deal valued at $3.26 billion.

    Its shares soared to an 18-month high.

    Thursday's $24-per-share tender offer comes after a day of speculation about the deal that sent shares up more than 15 percent. The offer is a nearly 46 percent premium over the company's stock price before rumors of a buyout began circulating."

    3--Microsoft Proposes Acquisition of Yahoo! for $31 per Share

    "Feb 01, 2008
    Transaction valued at approximately $44.6 billion in cash and stock; provides 62 percent premium to current trading price for Yahoo! shareholders; combined entity to create a more competitive company, providing superior value to shareholders, better choice and innovation for customers and partners..."
    Aug 26, 2012. 10:36 AM | 1 Like Like |Link to Comment
  • Impact Of Share Buyback On Sirius XM Debt Rating [View article]
    Business Wire, August 23, 2012 reported that,
    "Wohl & Fruchter's investigation concerns whether Liberty Media and the board of directors of Sirius have complied with their fiduciary duties in connection with Liberty Media's efforts to acquire majority ownership of Sirius, including the failure by the board to adopt takeover defenses, take other steps to prevent Liberty Media's acquisition of majority ownership, or impose conditions for the benefit of Sirius' public shareholders. "

    In considering the circumstances of these issues a question comes to my mind. Have the members of SIRI Board been lacking in their fiduciary duty, or have they been acting responsibly, by selling millions of shares of their holdings? Did they anticipate a poor outcome following LMCA taking control of SIRI?

    Yahoo Finance reports that INSIDERS' SALES IN THE LAST SIX MONTHS exceeded 53 million shares.

    Have the insiders, who include Karmazin, given up by selling without a good fight to protect SIRI public shareholders, or what?

    I look forward to some answers to my question.
    Aug 23, 2012. 11:56 AM | Likes Like |Link to Comment
  • Liberty Media (LMCA) takes the final step, and files an Application for Consent to Transfer of De Jure Control with the FCC to take control of Sirius XM (SIRI). In the Application, LMCA indicates that it intends to purchase sufficient additional shares of Sirius (SIRI) common stock such that, upon conversion of its Preferred Shares, it will own more than 50% of the total outstanding shares of the company. [View news story]
    The uncertainty in my mind as to the status and operation of SiriusXM surrounding Liberty Media potential takeover of SIRI Makes me satisfied in my decision to sell all my holding in SIRI.
    Aug 17, 2012. 11:31 PM | Likes Like |Link to Comment
  • Sirius XM: I Stand Strong On My $2.75 Target [View article]
    Mr. Faulkner, Congratulations on your piece today. I am long SIRI with a high percentage.

    My congratulations to you are not because of your statement, "From $2.10 to $5 in 3 years should make anyone grin." This did make me grin; however, it is because for the first time in a very long time someone showed courage in not wavering and in avoiding the use of expressions such as "on the other hand..."

    I realize there are no guarantees. yet, when writers who follow a stock express their optimism with informed opinion and a degree of confidence, under conditions of uncertainty nevertheless, they should be given respect and recognition.

    Thanks.
    Jul 20, 2012. 06:13 PM | 4 Likes Like |Link to Comment
  • Sirius XM Closes At Critical Level - Is It Headed To $1.63? [View article]
    If Spencer Osborne is telling us that the stock price may fall to $1.79, $1.70, or even to $1.63, is he suggesting that we should sell everything now at $1.83 and buy it back later at these low prices?

    Or what is the point from his article?
    Jun 14, 2012. 09:32 AM | Likes Like |Link to Comment
  • Slowing Auto Sales No Worry For Sirius XM [View article]
    At this time I am really not concerned about the level of auto sales.
    I am waiting to read a good explanation of why SIRI stock price has fallen from $2.40 to $1.89, a 21% decrease since April 2.

    This decrease in price happened after all agreed that SIRI reported very good financial results. This falling price caused millions of dollars of losses to holders of this stock within a short period of time, not because SIRI had disappointing performance, but because a billionaire had to satisfy his desire to get control of this company. Logically, when one increases the demand for a stock the price is supposed to rise. But, is it unfair price manipulation which is causing people to dump the stock of this growing company!

    We are told that no one person can control the stock market price. So, I am still waiting to read how can one person manipulate the stock price of a company which is owned by a very large number of the individual investors and many institutions as well as mutual funds.

    I have read all articles written in these pages about SIRI, LMCA, and Malone and Karmazin. I have not yet seen a definitive explanation of how one person can cause such damage to the value of a public company. Where is the SEC and where is the FTC? Are they there asleep while stock prices are being manipulated? Or what is really happening?


    Jun 5, 2012. 10:05 AM | 1 Like Like |Link to Comment
  • Sirius XM: Can You Make Money On A Stock In Transition? [View article]
    Below I will copy my comment which I had written in response to an article written by Spencer Osborne. In my comment I asked specific questions related to SIRI's stockholders, but no one provided answers to my questions. I hope someone here would find it interesting to respond to my comment.

    " Information available on internet financial pages show that the total number of shares of SIRI that institutions hold and the total value of their holdings are as follows:
    Total number of shares held: 1.9 Billion shares;
    Total value of these shares based on the dates acquired is $2.3 billion dollars.
    Total number of SIRI shares held by Mutual Funds : 260 million shares; and total value of approximately $500 Million dollars.

    My question to Mr. Osborne and to other informed writers is this:

    How are these institutions and mutual fund managers reacting to the events and developments that have taken place since SIRI shares were selling at $2.41?

    These institutions are stockholders of SIRI like us individual investors. They, however are big and have more information than we do. But, if we individual lose, I cannot see why they would not lose as well.

    So, are these institutions and fund managers worried that LMCA is out to dispossess all of us, or are they and us going to be OK once Mr. Malone achieve victory over Mr. Karmazin?

    Looking forward to reading some answers.
    27 May, 10:16 AMReply! "
    May 30, 2012. 10:08 AM | Likes Like |Link to Comment
  • Liberty Media Options Regarding Sirius XM Defined [View article]
    I agree with most of the above comments that Spencer Osborne's article is informative and interesting. However, there is an issue which he and others have not analyzed. I hope he would give us an answer to the following.

    Information available on internet financial pages show that the total number of shares of SIRI that institutions hold and the total value of their holdings are as follows:
    Total number of shares held: 1.9 Billion shares;
    Total value of these shares based on the dates acquired is $2.3 billion dollars.
    Total number of SIRI shares held by Mutual Funds : 260 million shares; and total value of approximately $500 Million dollars.

    My question to Mr. Osborne and to other informed writers is this:

    How are these institutions and mutual fund managers reacting to the events and developments that have taken place since SIRI shares were selling at $2.41?

    These institutions are stockholders of SIRI like us individual investors. They, however are big and have more information than we do . But, if we individual lose, I cannot see why they would not lose as well.

    So, are these institutions and fund managers worried that LMCA is out to dispossess all of us, or are they and us going to be OK once Mr. Malone achieve victory over Mr. Karmazin?

    Looking forward to reading some answers.
    May 27, 2012. 10:16 AM | 1 Like Like |Link to Comment
  • Liberty Media Options Regarding Sirius XM Defined [View article]
    I agree with most of the above comments that Spencer Osborne's article is informative and interesting. However, there is an issue which he and others have not analyzed. I hope he would give us an answer to the following.

    Information available on internet financial pages show that the total number of shares of SIRI that institutions hold and the total value of their holdings are as follows:
    Total number of shares held: 1.9 Billion shares;
    Total value of these shares based on the dates acquired is $2.3 billion dollars.
    Total number of SIRI shares held by Mutual Funds : 260 million shares; and total value of approximately $500 Million dollars.

    My question to Mr. Osborne and to other informed writers is this:

    How are these institutions and mutual fund managers reacting to the events and developments that have taken place since SIRI shares were selling at $2.41?

    These institutions are stockholders of SIRI like us individual investors. They, however are big and have more information than we do . But, if we individual lose, I cannot see why they would not lose as well.

    So, are these institutions and fund managers worried that LMCA is out to dispossess all of us, or are they and us going to be OK once Mr. Malone achieve victory over Mr. Karmazin?

    Lookinf forward to reading some answers.
    May 27, 2012. 10:01 AM | Likes Like |Link to Comment
  • Liberty Media Could Be A Sirius Problem [View article]
    After LMCA gets control of SIRI why it would not be in their interest to see the price of SIRI go higher and higher?

    Many of the articles on this subject seem to imply that LMCA wants to kill SIRI. Why pay for it hundreds of millions of dollars , albeing as low a price as possible, if they want to degrade it?

    It seems to me that the whole senario is a fight over who will control SIRI and benefit from its bright future!
    May 20, 2012. 09:49 AM | 6 Likes Like |Link to Comment
  • Sirius XM (SIRI +2.1%) CEO Mel Karmazin keeps selling shares like clockwork, according to SEC filings showing separate sales of 8.5M shares apiece. Rocco Pendola says Mel isn't done yet, as he predicts another offloading of SIRI shares next month by the exec as he makes his dispassionate case for SIRI running back down to $1.65. [View news story]
    I would appreciate comments on whether the following two statements make sense:
    1. It is in the interest of Liberty Media to drive down the price of SIRI in order to acquire more stocks in their drive for control over the company.
    2. Once control is effective, it is in Liberty Media's interest to see SIRI stock price go as high as possible.
    May 18, 2012. 01:08 PM | Likes Like |Link to Comment
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