Comments on: Clarity On Sirius XM Reverse Split Issue

By: LongTimeGone

LongTimeGone — Fri, 19 Dec 2008 14:08:38 +0000

I’m amazed anyone still cares about any of this stuff.

Reverse splits (or splits of any kind) do nothing. At all. The entire concept is silly.

The problem here is the merger. It was a bad idea, everyone can now SEE it was a bad idea, and it is only getting worse.

Instead of Sirius collapsing under the weight of its bad business decisions, we now have both XM and Sirius having collapsed (XM’s worst decision was to merge with Sirius), we now have half the music channels to choose from (instead of the “more choice” we were promised) and a looming debt crisis on the horizon. Had they not merged, the companies could have faced down the debt crises individually.

After the merger, the problem is just too big and the company will clearly be forced to Chapter 11 unless financing can be found, which is highly unlikely.

At one point it really looked like the industry might make it. Unfortunately, Howard Stern destroyed it. Howard Stern had the good sense to sell his shares the moment he received them. He knew he had sucked Sirius dry from the outset. Now, this “asset” the company has invested hundreds of millions in will walk away five short years later with more money than any other person made out of it.

I don’t think I’ve ever seen an industry commit suicide like this one has, not in a while at least.

By: dread

dread — Fri, 19 Dec 2008 04:31:14 +0000

I am thinking of bringing my average down below a 1.00.

By: still sirius

still sirius — Fri, 19 Dec 2008 02:42:58 +0000

Newman

You seem to be the level headed one of the posters. IMO the 100M decrease(loss) in 2008 EBITDA combined with the projected numbers for 2009. Balance sheet looks promising. Once the debt is taken care of (as long as it is favorable) The SP should rebound to a significantly higher number. What is your take on the meeting?

By: I invested In Mels bonus

I invested In Mels bonus — Fri, 19 Dec 2008 02:33:42 +0000

I drive a truck, when and where can I find him crossing a street?

By: EgisCodr

EgisCodr — Fri, 19 Dec 2008 01:48:16 +0000

I agree 100% with Newman’s statement. This was also my understanding based on the NASDAQ notice. The clck wold start again on Jan 20th, so the earliest they would hear anything is Feb 20th. Isn’t that around the time we pay off those Feb bonds?

By: dave

dave — Thu, 18 Dec 2008 23:56:57 +0000

its a complete fucking joke.I hope Mel gets hit by a truck

By: APEXSPORTS

APEXSPORTS — Thu, 18 Dec 2008 21:11:35 +0000

LETS SEE……… WE ARE .14 WE DOUBLE TOTAL SHARES THAT MEANS MY STOCK WILL BE WORTH .07 THEN WE DO A 1/50 REVERSE SPLIT EAQUALS 3.50$ A SHARE AND IT HAS TO GO TO 7.00$ FOR ME TO GET WERE i AM NOW? AND 57.00$ TO GET MY MONEY BACK.. YEA!!!!!!! WAY TO GO MEL KASIZZLE

By: jjpoulin

jjpoulin — Thu, 18 Dec 2008 20:50:45 +0000

Won’t having a R/S over our heads keep the share price down. I know I haven’t bought any shares since I heard of the R/S possibility. It would be cheaper for me to buy shares after the split when the shares pull back than to buy shares now. I think we’re at .13 because the R/S is looming.

By: SyNiSteR

SyNiSteR — Thu, 18 Dec 2008 20:26:49 +0000

Tyler,
Good article. Sirius has some time to get things fixed. Its going to be july or august of 2009 before the delisting of the company becomes an issue. We know that they have around 990m dollars to pay off next year. If they get a deal done and refinance the debt then you have until about 2014 before any major debt comes into play again. The current market conditions are terrible but sirius is still adding subs and that means there is still growth.I thought the numbers from the 8k released looks really positive going forward. They have done alot of cost savings and have really started to get the wheels rolling in my opinion. 2009 is a big hurdle. If it can be overcome sirius will be fine and i believe will really thrive. As for the reverse split i dont think we should have to worry about that until the company nears delisting.
I really hope some analyst will start to comment on what sirius said today to get their opinions.

By: dread

dread — Thu, 18 Dec 2008 19:58:21 +0000

Good info Newman, thanks!!

This puts a whole new perspective on the R/S, because that option expires before hand. Hmmm?