Let me be perfectly clear; buying shares of Sirius XM stock is and will be dead money for the short, medium, and even the longer term.
Mel Karmizin is continuing his sale of shares (or exercising his options for cash not shares) which has repeatedly put downward pressure on the share price.
"10:58 AM Sirius XM Radio (SIRI -1.6%) falls back on above-average volume with the anticipated sale of shares by Mel Karmazin this week or next sitting as an overhang. Though the block sales are part of 10b5-1 plan not related to any non-public information, SIRI has still taken a hit each time one of Karmazin's transactions is officially announced."
When the CEO is dumping shares regularly and the company is embroiled in a fight for control with Liberty Media (LMCA), and competitive forces are cropping up slowly but surely, why would anyone want to buy shares right now?
How awful is this 3 month chart? Well basically nobody can make any money! Not traders nor investors, and by the looks of this chart it proves my point: DEAD MONEY.
Liberty Media has placed a virtual cap on the share price by not wanting to buy any shares over $2.15 so why would any individual investor want to? They wouldn't unless they see value in holding for a very long time and hoping that they get value if and when (when is most likely) Liberty takes complete control.
Institutions are in a jam because if they have not sold out now, they almost have no choice but to sweat it out or slowly exit positions and try to break even if they are underwater.
Traders cannot make money because the RSI is awful, and the trading range is so narrow that it is easier to push an elephant through the eye of a needle.
Stay away. This stock is dead money for now, and with everything going on with control of the company, why place a bet on any outcome at this point.
If you hold, I am NOT saying to sell, that is your choice, but be prepared for any and all negative events.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.