Other than closing a financing deal, the only other thing I can think of, short term, that will regain people's confidence is seeing some insider purchases.
I know Mel bought 2 million shares recently which was great, but at this price, you'd hope to see directors and other insiders taking advantage of this opportunity.
I know it's hard to tell if they're free to buy at any given time because of recent events at the company that may not be public yet, but if we start seeing some purchases in the next few days, it would be a great sign.
I have no idea about the legality of how that works either...
It could be said that Mel gives a crappy presentation, the stock tanks, insiders buy, and then Sirius XM outperforms the guidance and the stock goes up, giving all of the insiders a gain. Would that look good to you as an outsider?
I think that Gary and other execs should be able to buy right now. This would probably move the stock above $1, but it might not last. Remember that Mel bought at around $1.40-something (from memory, could be wrong). The stock moved up, but came right back down.
We're probably stuck here at least until there's an announcement of debt refinancing or better-than-expected earnings and guidance. Little things like the retail offerings and deal announcements might also help a little, but we need something big to truly escape.
I agree with Brandon that the balance sheet should be on the forefront of their mind and they should ignore the undervalued PPS.
I'm not worried about the stock price right now. I'm looking to 2011 and beyond. I just want to make sure my stock certificates are still good six months from now. If I saw all those closest to the company buying some stock at this price, I'd sleep better and buy more as well. I don't just mean Mel, but directors, VP's, on down the line.
Jay, let me try and ease your fears just a bit...
This company combined around 40 days ago. Mel purchased 2 million shares around 20 day ago.
1) Do you really think Mel would have bought those shares if there was a chance that this company would have to file bankruptcy?
2) Do you think that THAT MUCH has changed in the past 20 days that would cause Mel to want to file for bankruptcy?
3) Do you think that Mel forgot to look at the finances of XM or Sirius before he decided to spend over 2 million dollars of his own money to purchase that stock?
Im fairly confident that your stubs (and mine) will be around in 6 months.
I completely agree with you, but there is one thing that has changed. The stock price. I was thinking this might take away one of Mel's financing options when the stock is this low. His 2 million share buy was great, but I saw something like he had $600 million worth of CBS in 2003. Anyone have a guess what his total net worth is?
I trust Mel, but I think there are a lot of guys trying to make things really hard for him and the company. I don't see bankruptcy as a possibility, but I've also come to realize that in this country, ANYTHING can happen.
This is a dream business. Not just financially, but the product is great as well. The possibilities for other products and applications down the road are exciting. I keep buying more and more shares and leaps. 95% of me is totally stoked at the price right now, but there's that 5% of me that worries someone knows more than I do.
I guess boiling it all down, it'd be great to see all those closer to the company as eager to buy at this price as I am. If I was a young exec there, I'd be selling my car to buy stock here. I'd be going to my boss and ask him to pay me with options and keep the cash.