morning all....
Looks like Sirius is picking up steam....
Stock price
0.1425 0.0025 1.79%
as of 04:00 PM EST on 02/04/2009 in USD (NASDAQ Delay: 15 mins.)
Extended Hours
0.15 0.0075 5.26%
as of 07:23 AM EST on 02/05/09
1st few trades on Etrade have pushed price to .15, so far so good.
Have you guys forgot something SIRIXM has enough COH to take out the remaining Feb. debt. not to mention there is the FCF from the 4th quarter and about 3 BILLION shares to dilute first. To be honest I am happy they are buying the debt and not shares that would worry me more at this point. I dont want one or two dollars when I have waited this long for this powerhouse spectrum to be let loose and show just what it is really capable of.
I agree they can take out Feb Debt with cash, but this is not what they want to do because it would leave them a bit low on $ to operate. I read that they still have access to a 250M line of credit without tripping covenants & they also should be able to get the May term loans reworked. The price increase in conjunction with the "Best of" has and should bring in a decent amount of cash upfront to help with the short-term debt. Echostar buying up some debt just helps the situation in my opinion. The WSJ author seems to want to bash and hope to push stock price lower - must be paid by the NAB.Originally Posted by john
So far this a.m. it is not working as stock is bidding higher on decent pre-marke volume.
Pre-Market Trade Reporting
Pre-Market Charts | After Hours Charts Pre-Market
as of 8:27am 2/5/09
Last: $ .1598 Pre-Market
High: $ .1599
Pre-Market
Volume: 631,142
sxminvestor, I disagree when you say that would leave them cash straped 175 million from 360 million is 185 million. Now while that is less it should be enough with the FCF from the 4th quarter and lets not forget that Mel has said that they will most likely be FCF even for the year so that means while they may need some of the COH at different times in the end of the year it all will even out. leaving them the 185 million.
I think they wil be alright either way. The important thing right now is that we're now bidding .16 + - hope it holds gettiing closer to market opening. We could be seeing a major short-squeeze here.
How about .25 in premarket? That is a good start!
with all the equity that SIRI already swapped for debt, they cant let this thing go BK now. some banks took this stock probably with some assurance that something was in the works. why would any bank take on such risk at this time without some idea that the equity would be worth something in the near future?
If Sirius XM can pay their debts when due, I would think they can not be forced into bankruptcy. So, since they have authorization to do a reverse split and to issue billions of new shares, doesn't this give them protection? If needed, can't they do a reverse split to get the share price higher, and then issue more shares to generate immediate money?
If all of the above is true, then I wonder if in fact this purchasing of debt is really an attempt to force Sirius XM into bankruptcy. Let's not forget that these are quite intelligent people.
Anyone have any thoughts on this?
Reply With Quote