Now that the reverse split and other issues have been approved by shareholders, many have questions as to when such actions will take place. Many investors were so caught up on the surface issue of a reverse split that they did not consider the issue in it's entirety.

the matter is that a reverse split may never happen. I am not saying that the company will not do a reverse split, but rather that the authorization allowed by the shareholders does not demand a reverse split. What shareholders approved was an authorization for a reverse split. The wording for the issue state:

"To approve an amendment to our certificate of incorporation to (i) effect a reverse stock split of our common stock by a ratio of not less than one-for-ten and not more than one-for-fifty at any time prior to December 2009, with the exact ratio to set at a whole number within this range to be determined by our Board Of Directors in its discretion, and (ii) reduce the number of authorized shares of our common stock as set forth in our proxy statement."

In simple terms, the Board of Directors can initiate a reverse split at any time between now and the end of 2009. Popular thinking is that this issue is for the issue surrounding possible delisting from NASDAQ. The proxy did not specify the use of the reverse stock split, but indications from management are that this is what they wanted the authorization for. If this is the case, then the issue will be on the table until at least mid 2009. NASDAQ suspended delisting until January 20, 2009. At the time NASDAQ had done the initial extension, Sirius XM Radio had not received a delisting notification. This means that they would be in line to receive one on January 20th (If stock stays below $1.00 for thirty days). Even then, the company will get what is virtually an automatic 180 extension to come into compliance. It is possible that NASDAQ extend the delisting deadline deadline, as many companies are still out of compliance (over 200) due to the economic turmoil in the country and markets. Even without a second NASDAQ extension, the delisting issue can be pushed of until mid July at a minimum. If during all of this time the equity comes back into compliance, all of the clocks would reset.

Sector watchers who want to gauge when this may happen (if ever) will want to watch the NASDAQ listing issue closely.

Position - Long Sirius XM