Where is Homer when you need him?
I don't know if even Homer could explain the crazy price swings though...
Day's Range: 3.01 - 3.01
Especially when this was the range for the day.
Homer? Help us out here.......
This is some info I posted on Yahoo last night for someone asking about them...
There are two sets of warrants, SIRIW and SIRIZ..
SIRIZ is what became of the former XMSRZ warrants, which many of us former XM longs traded (and did VERY well with). SIRIW are the former XMSRW warrants.
SIRIUS XM RADIO WT09
SIRIUS XM RADIO WT10
Warrants are like options, they are contracts that convert a preset number of shares at a preset price. The "WT" stands for WARRANT and the "09" or "10" stands for the expiration year.
More info from another post from last night...
The SIRIZ.OB are indeed the former XMSRZ.OB warrants that fully vest on 12/31/2009; they began trading as SIRIZ.OB in July when the merger closed... they last traded on 1/22/2009 at a price of $20 each.
The SIRIW.OB are the former XMSRW.OB warrants that fully vest on 3/15/2010; they began trading as SIRIW.OB in July as well, when the merger closed...
Those particular warrants I never did anything with and there are very few of them left outstanding... in fact, I totally forgot about them. They were issued to holders of XM's 14% Notes due 3/15/2010... and had a conversion price of $45.17. There's only a couple million of them outstanding, I don't recall all the conversion info offhand -- and don't care to spend the time looking it up.
Now, getting to the question of why the price fluctuation??? I can only speculate on it... and my speculation is based on buybacks.
The Z warrants vest on 12/31/2009 and the W warrants vest on 3/15/2009... I can only speculate that the price variation on them is based on buybacks by the company. XM noted in one of their filings that they buy them back with cash or by negotiating and adjusting the number of shares that each contract converts in to. Perhaps Sirius is negotiating with holders and adjusting the share conversion amounts - which would inturn effect the conversion price?
Total speculation -- regardless, there are VERY FEW amounts of these contracts outstanding... I wouldn't see too much into the price swings. When I was heavily invested in the XM Z's, the pricing on them totally reflected and were impacted by fluctuations in the change of the common (not vice versa). But back then, there was also a lot of premium built in to them... for example, I bought a bunch of the Z's for $160 each and sold them for a around $1,200 each a few years later. The common didn't move nearly as much, but still reflected changes in the common - it was just that the warrants had premium in them as well.
Today, the premium should have decayed quite a bit.
Last edited by homer985; 01-28-2009 at 11:50 AM.