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Sirius Satellite Radio Inc. Q3 2008 Earnings Call Transcript

At the end of the conference call Mel brought up the reverse split. He wants it and here's why.
50,000 shares becomes 1000 shares.
50,000 @ .25 equals $12,500
1000 will be $12.50 which equals $12,500
If PS rises .75 with 50,000 it will be $1.00 which equals $50,000.
To get to $50,000 with 1000 shares it would have to go from
$12.50 PS to $50 Ps.
If someone bought 50,000 at $3 or less the PS has to go to just
$3 to get back $150,000.
At 1000 PS it would have to go to $150 PS. Sirius will never go
to $150 PS. This means everyone who gets the reverse split
will never get their money back.
SO WHY DO THEY WANT IT. NOT TO HELP SHAREHOLDERS.
The reason is clear.
The outstanding shares of 3 bil become 60 mil. Now they can
issue 50 to 100 mil new shares at $12.50 and the people who
buy those shares will give them their money to pay off the debt.
With the debt paid off with new shareholders money the increase
in the new number of shares further dilutes the value of the
old reverse split shares. Now it's ready to go private. The short
sellers go to work and drive the $12.50 down to $6 and then $3.
Now private equity comes in and buys everyone out for pennies
on the dollar because the debt burden has been reduced by
duped shareholders.
The conference call was a traditional bait and switch. They hyped
the great revenue security and increase and then at the end
they said let's do a reverse split. FOR WHOSE BENEFIT. IT'S
FOR THE TAKEOVER BENEFIT.
They tried to put fear out there that Sirius will delist. The current
Nasdaq rules are clear. They were posted on 10/17.
SR-NASDAQ-2008-082
The rule changed the delist regulation by suspending until Jan.16.
After which if a Corp. was in the period of delisting they would
get another 60 days and then a second 180 days. It would be
another 10 months before delisting would occur.
Now either they didn't know the Nasdaq rule or they lied. If
they don't know the Nasdaq rules they are incompetent and why
are they running Sirius. If they did know, then they lied to get
people to vote reverse split. They are on record lying to the
shareholders. In law, false in one false in all. What else are
they lying about.
What they are doing is setting up a scheme to get people to
vote on the proxy for a reverse split which will wipeout any stock
value shareholders have and they will never get money back.
Then Sirius will be taken over by private equity. What ever
you do as a shareholder fight like cazy to stop the reverse
split. Tell everyone. We will all lose everything.
They were right about one thing. There is good revenue and
that's exactly why the crooks want it. It's a money bonanza.
There idea is to get rid of the debt with new shareholder money
and then get rid of the shareholders. ALARM!ALARM!ALARM!
Go to Nasdaq.com and look up delisting. Go to the SEC and
look up naked selling investigations.
Think about it, there is no reason for a reverse split that is
good for the shareholders. It wipes them out. They lied
about delisting to get votes. They have ulterior motives,
which is private equity takeover. With current good revenue
stream, no delisting in sight for 10 months, let Sirius run it's
course to get above $1.00 as it is. Because if it can't get
above a $1.00 now, why would it go higher when it's at $12.50.
The people who run Sirius are bad people, really bad people.