ktwalrus

Is Sirius XM a Buy, Sell or Hold?

Thank you for your continued posts about SIRI. They are teaching me a lot. When someone becomes so wrapped up emotionally in their stock position they will grasp at anything rather than admit they made a wrong decision and move on.

I did this a couple times in the past and your posts are a reminder never to get so emotionally committed to a stock that I don't use the discipline to preserve my capital.

As for SIRI, it is obvious that the toxic debt has killed the common. It has happened many times before to companies that choose to load up on toxic debt and then have their business plans underperform. The toxic debt holders simply short the common into bankruptcy or a fire sale. Either way, the debt holders make out like bandits. In bankruptcy, the common will be wiped out and the debt holders will be the new common holders, if there is still a possible business here. SIRI will emerge from bankruptcy with a much small debt position (of the non-toxic kind) and the old debt holders will hold plenty of fresh new shares issued for forgiving the debt. Since debt holders made out with their short positions, they end up with making money coming and going.

Meanwhile, longs like you will be posting... why didn't I see this coming?