Originally Posted by
homer985
Again, what is getting ignored here is the fact that Sirius is already priced for bankrupcty and looked upon as damaged goods. Does anyone really believe that the Market will value Sirius for LESS than its current BK price AFTER they restructure remaining 2009 debt? If so, then you really shouldn't be in this issue.
While I'm not guaranteeing it won't drop -- I understand valuations and see this priced for bankruptcy. If you remove that prospect, then this stock is undervalued. It would be insane for the market to drop the value to even lower levels at that point -- and I could all but guarantee that someone will buy it up.
That quote from above where they talk about a 60% drop??? Sirius is worth $500MM... a 60% would put it at $200MM. Really???? Think about that for a moment...
Yes, I think a RS is inevitable and needed - the timing is the key. I now believe the best time is after the 2009 maturities have been completely restructured. 6.3BB shares is too many for a company with $3BB in revenue. At most, the price could maybe touch $2 someday -- and that is under the most ideal of conditions and changes in economy, IMHO. Plus with the large amounts of outstanding shares -- it makes the stock even easier to be manipulated. I believe that there is such a thing as too much liquidity in outstanding shares. You reduce the supply, the demand is going to increase.
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