Wow, what a week last week huh?! Up to 20 cents and change, then all the way backdown to 0.1295. Talk about a bipolar stock...
So what do we have in store for us this week?
Just last night (Sunday) the Wall Street Journal published another article regarding Echostar and Sirius. You can read the full article here.
Many people (including myself) are fed up with the term "according to a source familiar with the situation..." but a lot of information in that article is indeed interesting. While everyone is bashing the article, I think the biggest part of it that no one is picking up on is where it says this:
This fact right here means that Ergen is not trying to force bankruptcy, which means that current shareholders will not loose everything. There may be a buyout, but then all shareholders will get either cash or stock. If you have a high cost average, you might end up getting screwed, but if you have averaged down to a low cost average, you might make out half way decently.Originally Posted by Wall Street Journal
The other issue that I have is this: As I posted over here, Echostar as of their last 10Q had about 963 million in cash and 360 million in outstanding debt.
Looking into Dish Network's latest 10Q, they have another 971 million in cash on hand and about 4.75 billion in outstanding debt. Either company could buy a substantial portion of the 2009 debt, but it would leave them pretty strapped for cash. It should also be mentioned that Ergen is estimated to be the 54th richest man in the world.
Key things that have to be in the back of our mind:
1) Would this be a good purchase?
2) Does Ergen really think the FCC and DoJ approve this? (IN A TIMELY MANNER)
3) Sirius still needs to announce Q4 and YE2008 Results. Will the announcement for the date be this week?
4) How well did Sirius do getting people to lock in long term contracts?
5) How well is the Best of Both taking?
6) Does Mel believe in this company to throw his own money at the debt? Remember, HE was the one that mentioned that possibility...
7) Does Mel really want to work under Ergen?
Inquiring minds want to know... and it will continue to get interesting.