just bought another 1200 shares, its like a crack addiction lol
SIRIUS XM SATELLITE RADIO FORUM
just bought another 1200 shares, its like a crack addiction lol
I also just bought a little more going into the close.....slowly accumulating.
SIRI hammered right at the close again - closing @ .135....
Trading back up to .14 in AH.....
im pretty sure were going to see a rally tommorow, hopefully sirius can oblige us and take part.
I can find a few reasons why it is @ .14...Originally Posted by trippingthespeculatingpos
1.- EPS = - $2.21
2.- Operating Margin = - 397.44%
3.- EBITDA Margin = - 385.95%
4.- Profit Net Margin = - 405.20%
5.- Return on invested capital = - 179.01%
6.- Cash flow per share = - $3.07
Now, tell me... why should its stock price go up ?
Because SIRI is on the brink of being profitable from this point on with improving revenues, cost saving synergies, continued subscriber growth, increasing OEM penetration, future contracts at better terms, and the #1 reason - they are not going bankrupt!
I would also add that the current share price has more than the worst baked in and that the credit markets will continue to improve with the recent fed moves...
demian said it perfectly. sirius is not the only subscriber based service out there in trouble, but there not priced at 14 cents, and sirius is the only one i know of actually growing at this moment in time which says a heck of a lot, 14 cents is a disgrace, dare i say it sirius is UNDER PRICED. Not to mention the fact that sirius is the second largest of its peers and STILL GROWING. Comcast is going down!
it cost alot of money getting this thing set up, and that looks bad on the balance sheets, but reality is now they are where they want to be, all they have to do is stay in businness to eventually be cash rich, its only a matter of time. If i was a bank i would not want to lose out on the potential gains here, of which there are many.
Another hit piece.........yawn.
http://www.todaysfinancialnews.com/u...siri-6684.html
The beginning of the final chapter for Sirius XM (SIRI)
Today's Financial News - Posted December 18, 2008
This may turn out to be one of the biggest days in the history of Sirius XM Radio (NASDAQ:SIRI). Unfortunately, it may also be one of the failing company’s last.
By Andrew Snyder, TodaysFinancialNews.com
Baltimore – (TFN): It is a big day for Sirius XM Radio (NASDAQ:SIRI) shareholders. They are meeting in New York to vote on issues that may permanently affect the company and its owners.
In case you have been hiding from the recession in a fallout shelter over the past year, Sirius has encountered a big problem. It cannot succeed at the basic function of every business: make more than it spends.
With subscribers not willing to boost Sirius’ dwindling revenues, the company’s CEO, Mel Karmazin, is asking shareholders to cough up some dough. With $1 billion in debt due over the next twelve months, the company needs cash fast.
That is why it is asking shareholders for permission to issue 3.5 billion more of the company’s shares. The figure is nearly double the 4.5 billions shares the company currently has outstanding. Karmazin is willing to take on the huge amount of dilution if it means the company can stay in business for another 12 months.
At today’s depressed stock price, the proceeds of the sale would bring in just $490 million or so, less than half of what the company needs to pay its bills. That is not good.
Voting for suicide
Most equity investors realize this deal is murderous to their position. Dilution will go through the roof in order to solve a very short-term problem. Sure, next year’s debt dilemma may be erased, but what about long-term viability? Today’s vote in New York will not solve any of the company’s fundamental flaws.
There is a reason Sirius cannot get the capital it needs on the debt market. The chances of it being able to pay the money back are slim. So why should equity investors pick up the tab if bondholders won’t do it?
Unless, Karmazin and his team can promise huge returns in exchange for the extraordinary risk he is asking of investors, there is no way anybody should go near this stock.
Right now, all the CEO can promise to do with any new capital is to increase the company’s chances of survival (from zero to about 10%). Just like General Motors (NYSE:GM) is asking Washington for a bridge loan, Karmazin is asking his herd of crazed investors for enough cash to get them over the next hurdle.
If Sirius makes it through 2009, it still has an incredibly tough road ahead. No matter what the outcome, today’s meeting will mark the beginning of the company’s final chapter.
http://www.bloomberg.com/apps/news?p...BQs&refer=home
Sirius XM Shareholders Approve Reverse Stock Split (Update1)
By James Callan
Dec. 18 (Bloomberg) -- Sirius XM Radio Inc. shareholders approved a reverse stock split and an increase in shares to help the satellite-radio operator pay its debts.
Today’s vote boosted the number of authorized shares to 8 billion from 4.5 billion, New York-based Sirius said in an e- mailed statement. Investors also permitted the board to effect a reverse split ranging from 1-for-10 shares to as much as 1-for-50 to lift the stock price above $1 and avoid delisting from the Nasdaq Stock Market.
Selling new shares could give Sirius the means to meet some of its almost $1 billion in loan repayments due next year, including $209 million in convertible bonds maturing in February. The stock has traded below $1 since Sept. 10 on investor concern that Chief Executive Officer Mel Karmazin won’t be able to manage the debt and meet growth projections.
“This gives them a little more flexibility as it relates to the refinancing,” April Horace, an analyst with Janco Partners in Greenwood Village, Colorado, said in an interview. Horace, who doesn’t own the stock, rates the shares “market perform” because of uncertainty in the auto and retail industries.
Sirius climbed half a cent to 13.5 cents at 4 p.m. New York time in Nasdaq trading. The shares have tumbled 96 percent this year. Before the stock fell below a dollar, Karmazin, 65, said the company had no plans for a split.
Stern, Football
The satellite-radio company, home to Howard Stern and the National Football League, also reaffirmed its revenue projection of $2.4 billion for this year and $2.7 billion in 2009. The company said its loss before interest, taxes, depreciation and amortization this year will be $200 million, revised from a previous projection of a $300 million shortfall.
The $2.76 billion all-stock purchase of XM Satellite Radio Holdings Inc. by Sirius in July created a company with more than 18.5 million subscribers. Sirius predicts subscribers to rise to 20.6 million next year.
The merger closed more than six months into a U.S. recession that has constrained consumer borrowing and spending. U.S. auto sales, Sirius’s biggest single source of new subscribers, tumbled 37 percent in November to their lowest level in 26 years.
Karmazin said in August that Sirius XM could weather a decline in auto sales because carmakers were putting radios in a greater proportion of vehicles.
Last month, Sirius reported a third-quarter net loss of $4.88 billion, including a $4.75 billion writedown.
To contact the reporter on this story: James Callan in New York at jcallan2@bloomberg.net.
Last Updated: December 18, 2008 16:15 EST
look a the diff in the 2 articles, bloomberg obviously doesnt seem like a hit piece but the other does.
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