BURTBECK

Sirius XM On the Rise - Does Microsoft Want a Piece?

Many investors think "OK, we'll just absorb a bunch of losses, cover them with more borrowings, but we'll keep growing and eventually we'll make money and the stock will achieve its PPS destiny.

IT TAKES CHECKING ACCOUNT CASH TO STAY ALIVE!

Such a situation places a company's fate totally in the hands of willing lenders. (New equity at current price is out of the (dilutive!) question.)
As I see it SIRI is in a life-or-death race to achieve sufficient cash flow to make a good case to lenders and there is a less than 50-50 chance that lenders in current and 2009 credit markets will want to keep the enterprise afloat. The current financial statement metrics are HORRIBLE. A Ch.11 reorganization would do wonders--the subscribers would be taken care of but the shareholders would NOT.