ktwalrus

July Satellite Radio Retail Sales Down but Better Than Expected

Tough to be a SIRI long... The shorts are all over this one due to the huge converts outstanding. I've seen this many times as the bond holders get a free ride to the down side. It is a vicious cycle since as soon as they are in the black, these shorts start shorting with impunity hoping to push the company into bankruptcy. As the stock goes lower and lower, it makes it next to impossible to refinance the debt.

Anyway, good luck with your long position. But, I don't think SIRI will trade on fundamentals until and if it can refinance those converts to more attractive financing. Chances are SIRI will go bankrupt wiping out the common and then re-emerge as a new company with new shareholders to take advantage of the long term fundamentals in the business.