mogami_99

Clarifying Sirius XM Reverse Split Issue

Hi, There is no doubt in my mind that a R/S will be good for Sirius and investors who buy after it is made. I also do not doubt that there will be a 50-1 R/S. Sirius simply has too many outstanding shares. I think they might be better off doing the R/S prior to using stock issue for debt. (It would require fewer shares at 6.00 or 7.00 then at .14) Suppose they execute R/S today. That would leave 60 million shares outstanding. They could issue 200 million ( at 6.00) to totally resolve debt.
They would then enter 2010 debt free and with only 260 million shares outstanding.