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Thread: Now What?

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  1. #1
    RickF is offline
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    Now What?

    OK - newbie that is still hoping here! What happens if the stock goes to $0 or the co goes BK - If a shareholder hangs on (perhaps for 30 years or so) is there ANY hope of recouping losses or are all of the shares worth $0 for eternity? Likely a really dumb question but trust me - I was REALLY hoping that I would not have to post this question and look so dumb!

  2. #2
    Jworld is offline
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    I don't know the answer but all i can say is that this may have been the worst financial decision i have ever made. This is a bunch of BS. I will have to decide whether to weather the storm or lose my ass.

  3. #3
    James is offline
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    Shareholders are last in line behind the others creditors in the event of a BK. If the company declares BK then it is likely the shares would be cancelled and the equity in the company would go to someone higher up on the list of creditors. Under this situation (and only this situation) the shares could eventually go to zero.

    If, and this is my opinion of what will happpen, there will be further dilution of the shares, e.g. they sell more shares at this low price or they issue a convert at this low price, then you will continue to have your shares but they will represent a smaller percentage of the company. The shares may eventually go up in value.
    Last edited by James; 11-19-2008 at 06:05 PM.

  4. #4
    RickF is offline
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    Thanks Bunches for the info James! Sounds like the bread line for alot of us?!

    Jworld - I too am in alot further than i should be! Lets all cross our fingers and hope - pray - whatever works that this Mel guy can turn lemons into lemonade!!

  5. #5
    GetItStraight is offline
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    When a company BK's and cancels shares it's over. The company, if able to reorganize, would most likely issue new shares with a different ticker symbol that would have no relation to the previous shares.

    People on these boards and elsewhere keep saying that BK is unlikely and I hope that was the truth however this is a very real possibility.

    I do agree with the previous poster in regards to the R/S more than likely happening. I personally think that this will just delay the inevitable at this point. I'm long 10,000+ shares with a much higher cost basis (+$2.25/sh) and don't want to see my money wasted but the facts are what they are and they are showing the stock worth zero.

  6. #6
    APEXSPORTS is offline
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    Why would you think we are going bankrupt.. nothing has changed from q3 last week it was very + .. the nasdaq is hitting new lows everyday so all stocks go lower.. and sirius is trading with gm/f and thats wht we took the dump from .25 to .17 this week.. this is not a trade, I post great trades every day here !!

    this is a 2 year investment, I wouldnt put more money in and I wouldnt take any out..its a hold.

  7. #7
    RickF is offline
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    Apex - I for one REALLY appreciate your positive posts and i too am in for the long haul - it would be bringing on my own "financial" suicide to cash out now. I agree that the entire market is falling and siri is following but it seems to me that perhaps siri is in more dire straights (refi needed, rs possible, share dilut likely) and less able to tread water than other stocks?? Your comments and the other folks on this board are VERY welcome and I thank everyone for their insite and educating!!

  8. #8
    Siriusowner is offline
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    Quote Originally Posted by RickF View Post
    Apex - I for one REALLY appreciate your positive posts and i too am in for the long haul - it would be bringing on my own "financial" suicide to cash out now. I agree that the entire market is falling and siri is following but it seems to me that perhaps siri is in more dire straights (refi needed, rs possible, share dilut likely) and less able to tread water than other stocks?? Your comments and the other folks on this board are VERY welcome and I thank everyone for their insite and educating!!
    You are totally correct. It is bad if you are at sea and a storm hits you. It is worst if you are already making water.

  9. #9
    Whynot is offline
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    Quote Originally Posted by APEXSPORTS View Post
    Why would you think we are going bankrupt.. nothing has changed from q3 last week it was very + .. the nasdaq is hitting new lows everyday so all stocks go lower.. and sirius is trading with gm/f and thats wht we took the dump from .25 to .17 this week.. this is not a trade, I post great trades every day here !!

    this is a 2 year investment, I wouldnt put more money in and I wouldnt take any out..its a hold.
    Hey Apex,

    I was looking for your opinion on my situation. I've got about 22,000 shares at an average of .78 each. I feel like the time is right to buy more and average down....but I'm not sure what R/S or further dilution would do to my investment. Any guidance??? I won't treat it as advice (professional or other).....but I have to admit I'm a little lost and you seem to know what you're talking about.

    Thanks in advance,
    Whynot

  10. #10
    Siriusowner is offline
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    The economy is not getting any better... And it will not for a while. I hope all the positive gurus here are right and the company does not go belly up.

    GM though that 21 billion cash was enough to get them thru 2009... It wasn't, it will barely get them thru 2008. How far do you think 360 million in cash will take Sirius ? They have been posting losses forever so they are burning cash.... More now that the stock is priced for BK.

    I got nothing against Sirius but if in good times it could not make any money, why would I expect it will make any in bad times (and we have not seen the bad times yet) ? What they sell is the first thing to get thrown out the window if the boat is sinking, at least that is what I would do.

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