FNG

Citi: Sirius XM Is “Massively Undervalued”

I am a position trader by choice (low stress, less attention required, more time to watch sports (How about that Phelps!)). As a retail level player, last week I bought another 3.6K shares at 1.36 and averaged down a bit in the process to 1.54 overall. The .06 gain to 1.49 yesterday looked good to me. Forward looking analysis and instinct tell me the best bet is commit long. The baby multibillion dollar monster is still in a cave, impeded by expected merged-entity shakeout and surmountable debt. On the debt, yes it is a major challenge--but which side you come down on depends on whether you believe that Mel Karmizen is a mature and resourceful leader. He got the merger done. He is focused on success. He is following his plan. He will handle the debt. As he said and as continuing news coverages shows, the company is doing the right things including making executive and other staffing changes, focusing on merged entity process melding and improvement, and no doubt doing some major league deals under the radar to evoke favorable sentiment when the time is right. By the way, Mel shares a trait with the great Negro League pitcher Satchel Paige, who said, "I use my single windup, my double windup, my triple windup, my hesitation windup, my no windup. I also use my step-n-pitch-it, my submariner, my sidearmer and my bat dodger. Man's got to do what he's got to do."