Scot's Slant

Who'll Blink First: Sirius, Loral or the Banks?

Scot here. Relmor, one of your recent posts puzzles me: Why would Sirius management try to frighten shareholders? And then when you add that if share price goes to high, shareholders will vote against a reverse split, this is also puzzling. Wouldn't it be reasonable to assume that in the event a reverse split becomes necessary to save the company, management has all tools necessary to effect measures that will ensure survival? I think what Sirius management is doing is called "crisis management."

As any good general prepares for a looming battle, a contingency plan is in place where if one avenue of attack fails, there is another viable plan to save their troops from slaughter. And this is what Mel and his team are doing with the reverse split contingency as they do not wish to leave a legacy of failure that resembles Custer's last stand in the Battle of Little Bighorn....

By the way, one more small thing: when you say, "if share price goes to high," wouldn't this be good news where more drastic contingency plans will be abandoned with the company moving in a positive direction? And as for a reverse split, what is the fear there? A split does not equate to a loss in value of shares -- it simply reduces the number of shares...

Scot's Slant

Who'll Blink First: Sirius, Loral or the Banks?

Scot here. Gee, somebody finally said it: Thank you Tyler for pointing out that "management is well aware of the situation" and that they have 'thought things through.'"

Also, when people ask: "why has Sirius not done more advertising with the holiday shopping season approaching," management has probably thought this through as well: With all indicators pointing to dismal consumer spending during this 4th quarter shopping season, management has probably decided to sit tight on their advertising budget until after the new year and do more to keep their existing subscriber base intact -- Karmazin and his team are not a bunch of nitwits who are asleep at the wheel....

And by the way, there is one more thing: As the directors of Sirius recommended, I voted "for" on the reverse stock split. I don't care what the analysts say -- if they are so smart then I must ask, "why are they languishing behind a desk with a meager salary of $125,000 while Mel earns a few million or more per year in running a company that is worth billions of dollars"? The man's track record speaks for itself: He is not intentionally driving this company towards bankruptcy and it is sheer stupidity to believe otherwise....

Scot's Slant