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  1. homer985 is offline
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    Joined: Mar 2008 Posts: 485
    03-07-2009, 01:51 PM #11
    Quote Originally Posted by sl62 View Post
    I suggest you reconsider the meaning of having Malone and Liberty not only as partners, but that they have their 40% stake. So what? Just gives this company that much more firepower at the helm. In the end I think you and all off us will see the results. IMHO...
    Instead of the stock being value at $2.00 some day, it will be valued at $1.11 some day. Gotta love dilution... but you are right. It was either this or the stock being valued at $0.00 some day.

    Take your pick.



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  2. Wirestripper is offline
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    Joined: Mar 2009 Location: Arkansas, USA Posts: 137
    03-07-2009, 04:07 PM #12
    S162


    "There was one bullet in the gun and it hit its target. "



    I think that statement is the most accurate way to describe this.

  3. Newman is offline
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    Joined: Jun 2007 Location: Dallas Texas Posts: 1,162
    03-07-2009, 04:26 PM #13
    Quote Originally Posted by homer
    Quote:
    Originally Posted by Brandon Matthews
    They are going to have money. A lot of money. Read the press release. A lot of money came from Liberty to be used "for general corporate purposes."
    Of the $280MM loaned to Sirius... $30MM went to Liberty for the deal, plus $172MM went to repurchase the Feb09 Bonds. That leaves $78MM for Sirius to use for "general corporate purposes".

    I wouldn't call that a lot of money, IMHO.
    Actually, you are both wrong. The CC will report Q4 numbers. None of this was done in Q4, so COH reported will not include this amount.

    Regardless, I feel that this was a do or die option. I don't like it at all, but it was much better than the alternative (BK). I don't think the banks wanted to extend anything without being certain that Sirius could pay off the December debt, because it would have put them back a little bit further in line. Sirius would have had to put the BK message in the Coference call, because it would have been required by law. This would have sparked a short frenzy that would have killed us all. As much as I hate the deal, I think it was the only option.

  4. OldDruid is offline
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    Joined: Feb 2009 Location: North Carolina Posts: 116
    03-07-2009, 05:37 PM #14
    Sl62..

  5. omega_1 is offline
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    Joined: Oct 2008 Posts: 11
    03-07-2009, 07:16 PM #15
    Quick question, i just read what Brandon wrote in that article. What is he talking about 6 billion in tax credits ?? whats that about ?

  6. Newman is offline
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    Joined: Jun 2007 Location: Dallas Texas Posts: 1,162
    03-07-2009, 07:52 PM #16
    omega: When you have an opperating loss for a business, you can take a tax credit. These tax credits are limited on a per-year basis, but any credit that you do not use can roll over. Basically, what Brandon is saying is that because of the heavy losses for the last many years, they have built up quite a tax credit that they can use in coming years when they start to generate a profit.

    It is the same in your personal taxes. If you sell a stock for a loss, you can write a portion of that off. The amount you can write off is limited to something like 3,000 per year, depending on your income. If you sold Sirius in December 2008 for a massive loss (lets say 15,000), then you roll over the difference (12000) and can use that in 2009. Use 3000 in 2009, and you have 9000 left... and so on and so forth. Same concept. It cannot ALL be used at one time, but it will save the company a significant amount of money over the next many years.

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