Originally Posted by
Newman
December 3rd, 2008 at 7:34 pm Newman Says:
Max, I beleive you should be offended. I do believe it was you that Mel was referring to when he mentioned “UNSOPHISTICATED INVESTORS.”
In regards to synergies, Mel stated that they would START TO REALIZE synergies from day one, he did not say “As soon as the papers are signed, we will have 7 billion dollars added to our bank account.” We HAVE started to see synergies. Just look at the Q3 CC. There are synergies on every line item.
You write: “Most investors, myself included, have been abused by Karmazin’s role as CEO. From outrageous bonuses to Stern on Day 366 of his Contract, to outrageous statements about Positive Free Cash Flow (always the next quarter) to the aforementioned caustic August financing”
Since you are apparently such a die hard Sirius investor, surely you are aware that those bonuses were written into Howard Stern’s contract, a contract which was MADE AND SIGNED before Mel was ever with Sirius, correct?
What rediculous statements has Mel made about Free Cash Flow? Was it in 2005, when the company was FCF positive for Q4, as he said they would be? How about for the entire second half of 2006 when they were FCF positive? What statement exactly was it that Mel did not deliver on based on FCF?
As far as Mel’s compensation: I agree, it would be a huge boost of confidence if he were to come out and state that he would only take $1 for 2008 and 2009 as salary. But you know what? Regardless of the PPS, the COMPANY has done nothing but grow since he has been CEO. Subscribers are still growing in the double digit percentages, revenue is still growing, losses are narrowing, and costs are being cut. Other than the PPS, what grounds do you have to say that Mel has failed? Sure, financing was toxic, but the merger took forever to complete, and when it finally did happen, the credit markets were crap. Who is to say that Mel did not have financing lined up in December of 2007 that had to be cancled because the merger had not been completed? You do not know what goes on behind closed doors, and neither do I. But on WHAT GROUNDS do you have to say that Mel has failed, OTHER THAN THE PRICE PER SHARE?
Absolutely none.
Unsophisticated indeed…