itsallhype

Sirius XM Dips Beneath $1: Will the Street Give It Any More Time?

so stick it to the bondholders and buy the stock on the cheap. you have a better chance of making money here than at a casino

Sirius XM Dips Beneath $1: Will the Street Give It Any More Time?

wouldn't you convert the bonds to stock and dilute it more now? Eliminating the the interest and debt services on the bonds increases the cashflow and bottom line for company. Stick to the bond holders who are the mutual fund houses.

Sirius XM Dips Beneath $1: Will the Street Give It Any More Time?

i agree that the stock would be diluted. it's wall street. do you know how many companies are trading at high values yet have negative net worth. Look at GM. They like Sirius have negative working capital. Hedges is absolutly correct in the marketing end, however, we as a nation have to start thinking that these stock investments should return a modest growth of 10% share value a year instead of the instant gratification that the news shows amplify.

Sirius XM Dips Beneath $1: Will the Street Give It Any More Time?

the debt should be traded for stock and some cash. tell the bond holders its that or nothing. Mel is trimming expenses (expect them to cut staff in half) while the merger doubles revenues (standard merger practice). this is like the bear raids in the Gould era (1870's) let hype drive it down. buy it on the cheap, reissue stock to raise cash, buy out the debt for pennies on the dollar. make the balance sheet look pretty then do a reverse stock split to get the price over $5 dollars a share.