beanboy62

Sirius' Future Looks More Promising Than Ever

Brandon wrote In regard to vthe R/S
The pain of this has already been realized, and it's time to begin looking ahead to the future of SIRI, which may have never, since its creation, looked better from an investment standpoint.

I could not dissagree more :
The R/s pain will only begin if and when the R/S happens. Siri common PPS has the ability and potential to rise to $1.00 or more by oct 2009. If Sirixm R/S happens It will reduce a siri holders position by 98%. With that kind of loss in leverage the remaining 2% would have to rise to astronomical levels that are virtuallt impossible in this generation . If your average pps is $1.00 to $4.00.. After the R/s Your remaining 2% will get shorted again. The effect of a R/s will be just like BK for the holders of the common. he value of the a pre R/S siri position will be whiped out. Even if you are in with a average of .12cents you will lose money for a couple years even if Siri does ok post R?S

As for the R/S getting rid of short sellers

After the R/S Siri will have 360 million outstanding and that is more than enough to keep the short sellers in this stock . before delisting.Mel karmizan said on more than one occasion that the only reason to R/S would be to avoid delisting. The Key here is to get the refinacing done and get back those shares that were lent out to short.. Siri should do a debt for equity swap with those shares . The Sec extended the delist and weshould take full advantager of that. This is just my opinion.