dayworker

Liberty's Sirius Preferred Stake Expected to Be Spun Off

One possibility that now hangs out there is that SIRI will issue more stock as they reserved the right to do, dilute shareholder interest again, but buy the Liberty stake back. This is at the cost of dilution and shareholder value. But it ensures that management and talent will continue to get their money at cost of dilution. This is what I think is possible about their leverage play. To use stockholder money to keep themselves in the money.

Liberty's Sirius Preferred Stake Expected to Be Spun Off

Thanks Pell, I am making suggestions only. I like many can only try and analyze in order to make investment decisions. All the factors can be looked at. It's not a matter of bias just trying to be objective.
I have no beef with anyone and just ascertain which fundamentals work and which are wrong. Sometimes managements are wrong,
ie. Lehman's, Bear Stearns. It's nothing against Mel and Co., it's just are they doing the right thing. When the SIRI was on the brink they did little to cut the expenditures, especially on high price talent and some of their fees. This tells everyone they were not willing to sacrifice for the survival of SIRI. The play with Malone fell right into the category of leverage. In otherwords, how was SIRI going to pay Malone. The leverage play as we now see might be for Liberty to sell their stake, less than actual market value, and walk away with a bundle. The problem is that, if SIRI can not buy the stake back, then Malone could sell to another investor who is only interested in the leverage investment play again and not sat rad. They just buy the stake based on the assets and values and when the time comes they will sell their stake and so on, and so on. They have no interest in sat rad, just the leverage play. I mentioned in a previous blog the money game is outside the actual sat rad business. They will only want to protect their investment not the sat rad product.
Again I am only offering views and don't know concretely what might happen. I bring it to the blog to open and broaden a discussion and read others views with out animous.

Liberty's Sirius Preferred Stake Expected to Be Spun Off

I've said it many, many times the leveraging play is to make the money upfront and pass it on. Each one takes out their money and they keep passing it to the shareholder. They may dilute again now or wait until after a r/s to dilute and raise more funds, but always taking out funds. If Liberty gets out of their stake that's exactly my point.
He takes his money out upfront. Those who thought he was going to get it back out of revenue now see my point. They keep leveraging to take money out against the value and assets. I know there are a lot here who are staunch supporters and bash everyone who is looking deeper into the analysis of managements
role, but you are bashing the wrong people. You should take it out on those who are running SIRI into the hole. And some should be thankful there are people calling them out on this. Don't get me wrong we all want thep/s up, how is it going to happen with this management.

Liberty's Sirius Preferred Stake Expected to Be Spun Off

Basic business fundamental 101, Debt structure relative to expenditures and anticipated revenue growth. Bottom line the business model of SIRI is flawed because mangement leveraged the company before it cut the high priced talent and management fees.
The expenditures should have been reduced a long time ago. This would have created a larger cash reserve. There were articles after articles about the mismanagement and many here refuse to accept that. The last blog thread from Nov. 11 posted a comment from an independent advisor who described it as the worst management ever. Yet know one here bashed that claim. There was a blog recently about SIRI from Audit serv. who said SIRI is at the highest media risk. In the Los Angeles times aricle about Hartenstein there was a reference about SIRI facing media challenges from the changes in media delivery, ipod and streaming. Yet some people here will never recognize that many people in the investment world have identified the problems with SIRI as run by the current management. But some here are always
quick to bash and tear down someone writing about SIRI objectively
and they go on to praise, praise praise SIRI management. It has nothing to do with the product but who is running the show. So now Liberty walks away with a billion and SIRI has to scramble again to deal with possible M & A and debt. This exactly what I was saying about how leveraging works and the backroom deals that go. Let the leveraging begin. As some one here just said the longs are going to get caught in the cross fire. Which is exactly what happens thru back room leveraging.

RBC, Barclays Weigh In on Sirius

Income(with growth) vs. costs and debt based on assets values means
sp will only move up if equity buyers feel confident management has a
business model that will work. If management is incompetent then,
both in operating and programing, the restructuring of debt will over
burden the company in the long run. The ps moves now between the
players for shorts and quick shots is basically gunfight at the ok corral.
They shoot at you and you at them. If you see their bullets coming you'll
make it. If your timing is off, whack, you got shot.