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Analysts on Sirius: Merrill, Goldman See Gloom, Barclays Sees Upside

I'm writing this post separately so it doesn't go unnoticed.

TO POTENTIAL INVESTORS CONSIDERING SIRIUS XM:

If you have just read the latest articles posted on Seeking Alpha about recent analyst opinions regarding Sirius XM, I urge you to continue your search for further opinions about the company (SIRI). Some of you may or may not know that two of the opinions being reported in these recent articles, authored by Tyler Savery and Brandon Matthews respectively, are completely un-credible. The opinions I refer to are from Merrill Lynch and Goldman Sachs. Here's why...

Merrill Lynch is a former independent investment banking firm (and one of the culprits of the now infamous mortgage-backed securities credit scandal plaguing our country--which has nearly caused the absolute collapse of our entire financial system), who were on the verge of bankruptcy just one week ago. They are liars and cheaters and nearly missed being completely wiped out as a business due to malfeasance. They were only saved because Bank of America (one of our more sound banking institutions) came in and bought Merrill in the 11th hour--saving Merrill from humiliation and ruin--albeit the truth remains a fact. And the only reason B of A bought them is because it then gives B of A access to Merrill's vast client base of very wealthy investors--which is additive to B of A's business. They did not buy Merrill for being a sound, well-managed company. Quite the contrary. So you see, whatever Merrill Lynch has to say about anything, including Sirius XM's present or future, means nothing. How can anyone trust the word of a lying, nearly bankrupt company?

Goldman Sachs is another former investment banking firm that was also within weeks of probable bankruptcy due to over leveraging (same mortgage-backed securities scandal--though to be fair their exposure was less than other culprits). What Goldman did to save themselves from the graveyard, was apply for and was granted, changed status as now a regular bank, rather than an investment bank--subjecting them to less stringent rules of capitalization. They have also recently, just to raise more desperately needed capital to remain solvent, accepted a stock-diluting investment from financial titan Warren Buffett--guaranteeing Buffett a minimum 10% return (with zero downside) on his 5B investment into Goldman. But this is not the main reason why their opinion is worthless concerning Sirius XM. The reason is because Goldman Sachs is involved in the financing deal that Sirius Satellite Radio did to complete their leveraged merger with XM Satellite Radio (creating the new company now called, Sirius XM). In this deal, Goldman Sachs, to hedge (or protect) their financial investment in Sirius, were "given" newly created common shares to "short" or sell in the marketplace. As a result of this shorting action, they have been largely responsible for the stock price decline (because shorting causes the price to go down). From Goldman's standpoint, the lower SIRI's stock price goes, the more money they make. So you see, for their analyst to lower price expectations and create more doubt and concern about SIRI, so people will either sell their currently held shares or not be motivated to buy any new shares , all helps them make money--and a lot of it...probably in the 100's of millions when all is said and done. Their analyst will of course not include this in his report. So that is why I'm telling you--so you can be informed about the truth. I am not asking that you just take my word for any of this, but that you investigate the validity of my points (and those of other more impartial analysts), and information directly from the company, for yourself before making your decision about what Sirius XM is or is not as a company.

One of those other impartial opinions about SIRI you will find is also cited in these two referenced Seeking Alpha articles--that of Barclays (a solid, British-based banking institution who recently picked up parts of another mortgage-backed securities culprit, the bankrupt Lehman Brothers). Barclays, who has no agenda against SIRI, is more in line with what most other analysts covering Sirius XM think about the company and it's future. In closing, as you make up your mind about the company, I urge you to research other articles and reports written about Sirius XM, that are out there and available. I would also, for reasons I have cited, recommend that you disregard the opinions of the two un-credible analysts of Merrill Lynch and Goldman Sachs. The facts on those two just nearly-failed and implicated institutions, speak for themselves. In full disclosure, I am a long SIRI investor--not to mention a believer in the company's success. That being what it may however, has little to do with the undeniable and pure fact I have laid out in this post--and my main hope is this post might be helpful to others reading who may not know the whole story. Thank you.