bdp

Intrinsic Value Investing: Recognizing Potentially Mispriced Stocks

I think there is one vital and obvious reality that everyone (including myself) is choosing to overlook. We have been so focused on avoiding bankruptcy that we have ignored the fact that Sirius is now in the clutches of another entity and not necessarily rescued by a white knight. Sirius is now partnered out of desperation and not of choice. This puts them in a weak position since they have been granted nothing more than a virtual wheelchair that is pushed about by their new caretaker. With this in mind, perhaps the stock will not move right now at the rate we are all expecting. I think positive news , 4Q earnings etc... are what is going to propel this company forward from here on out. As of right now, the short term effect of the Directv news has sputtered out and I doubt we will top the high of today by the close. Tomorrow may see a bit of a gain, but I don't see any thing holding much past the .20 mark until the build up to 4Q earnings. The smartest thing Sirius can do right now is maintain momentum through more frequent press releases and try to drive the sp toward $1 without the RS. Any more desperate moves by this company or long black out periods of secrecy will absolutely annhiliate any shred of investor confidence that was acquired today.

Intrinsic Value Investing: Recognizing Potentially Mispriced Stocks

Perhaps takes a bit of time for investors to sift through the news and information before confidence kicks in and we see a steady increase in the price. Perhaps the shorts are feasting. There seems to be no obvious explanation for the lame performance right now. Maybe this stock is just cursed. This is not the outcome we have been anticipating. Answers anyone?

Intrinsic Value Investing: Recognizing Potentially Mispriced Stocks

Well, this press release seems to not contain the maximum impact we were all hoping for. However, It is obvious that Sirius has locked it's position and is definitely not going down. It may take a bit of time for investors to realize that Sirius has found protection in a larger healthier company that has a vested interest in not only Sirius's survival, but as a company that will now be given another opportunity to thrive. If anything, Sirius has been granted the much needed time required to catch up with it's debt obligations. I am also thrilled that Mr. Malone has a seat on the board. His business sense seems a bit more level headed as opposed to Mel's wacky adrenaline fueled 11th hour gambles that he is famous for. I don't expect Sirius stock to soar through the roof in the near future, but I do expect more frequent positive press releases from the company in the weeks and months to come as the release from the debt burden has been realized. As always, I am in this for the long haul and at least feel like I can finally stop holding my breath... for the time being.
IMHO