Comments on: Mel’s Karmazin’s Mad About Mad Money

By: SIRIUS XM 2009 Debt Is A Non Issue - SiriusBuzz

SIRIUS XM 2009 Debt Is A Non Issue - SiriusBuzz — Tue, 12 Aug 2008 13:41:10 +0000

[...] can about convertible arbitrage. I was reading over Sirius’ 10Q filed today. After hearing Mel on Cramer referring to converts coming due in 2009, I decided to look into it a bit deeper. I have seen message board posters claiming billions had to [...]

By: sirilong

sirilong — Mon, 11 Aug 2008 23:44:49 +0000

crfceo – Do have a clue. Why i have been able to build up so many shares in Sirius: ie buying and selling. While I remain a long in SIRI stock, I am also an investor and understand the EXTREME risk associated with this stock. While I am against the way in which Cramer came out “selling” the stock the night before the merger, his argument as to why is still solid: is extreme debt and a company owned by those debt holders. Besides, in order to stay afloat Mel sacraficed shareholder value once. Who says he won’t take that route again. I would actually support it since I am a true long and believe that at times it is necessary to sacrafice all short term gain for the long term investment of the company. This in effect is what Mel did. Unfortuantely, many “longs” on these blogs are really shorts in sheep skin, waiting for that “pop” that is just NOT going to happen until about three years. So crfceo, I ask you, what is wrong with being a prudent investor and selling part of a position in order to gain a larger position in the long run?

By: crfceo

crfceo — Mon, 11 Aug 2008 23:22:59 +0000

hey sirilong…

Let me ask you this. What are the terms of the outstanding debt? What makes you think that the terms won’t be better than the original?

What you are missing is that Sirius and xm signed those deals while in their infancy. Revenue was a question. With the merger, that question is no longer relevant, so terms will be much better…

get a clue…

By: sirilong

sirilong — Mon, 11 Aug 2008 21:16:53 +0000

Don’t worry too much about me Paul in Fl. I still hold half my position so got the bump and even sold a few more 1000 shares today with the bump. I am sure in the very near future I will be able to jump back in at a much lower price than todays close. Especially with a billion of debt to refi by next year. Mel did mention that he has had meetings and they agreed that addressing this issue sooner than later is best. So I would expect some news shortly regarding the refi of next years debt before to many “shorters” get back into the picture as Cramer said during the interview.

By: Sirius Roadkill

Sirius Roadkill — Mon, 11 Aug 2008 20:22:10 +0000

I must give credit where credit is due . . . Mel really has a great tan!

P.S. Mel, oversubscribed facility = too much shareholder value left on table.

By: DLite

DLite — Mon, 11 Aug 2008 20:08:07 +0000

^^^ I mean I loved when he was pointing his finger at Cramer, repeatedly, as he drove his points home.

By: DLite

DLite — Mon, 11 Aug 2008 20:07:13 +0000

Mel: Wienkes in league with hedge funds “in my opinion.” Classic!

Mel handled himself great. Loved him pointing his finger at Mel and forcing him to admit that SIRI is the best-in-sector. That took balls of steel.

By: Newman

Newman — Mon, 11 Aug 2008 19:54:03 +0000

Your article had more to it than mine did =P

Paul in FL: I agree. There is just too much news in the near future to drive the price of this stock up rather than down. Other than the refinancing of debt, there should be very little downside to this stock for at least the next year and a half. I am broke right now, but it is STILL so tempting to buy more stock at these levels, even though my portfolio is already over weight with Sirius stock.

By: Brandon Matthews

Brandon Matthews — Mon, 11 Aug 2008 19:32:11 +0000

I just wanted to get a commentary up there asap. Feel free to bump it. Diverse opinion is the best for everyone!

By: Paul in FL

Paul in FL — Mon, 11 Aug 2008 19:31:47 +0000

Nice 13 cent pop on today’s CNBC program. I saw on Friday where some posters sold 100,000 shares @ $1.31 or so. He/she left $14,000 on the table with that trade. It was a judgement call for sure, but it bring to attention how little it takes to move this stock one way or the other. As I have mentioned before, we are closer to a bottom than a top. With that kind of situation it’s best to sit tight and give it a chance to deliver some good news. Today was in that direction. More will come at the post Labor Day conference call.