Originally Posted by
Newman
Unfortunately, I think an RS is needed. BUT NOT YET.
With a float of 4 billion shares and a stock price in the teens, the circumstances lend themselves to manipulation.
They need to wait until they have a consistant string of good news. I could see an RS coming around September if the economy turns around, banks start lending, and people start buying cars. If all of these are not happening yet, a RS will be a disaster for current shareholders.
As far as for HAVING to do a RS, there will be another shareholder meeting this year. They could vote to extend the deadline for the RS. The earliest possible time when SIRI could get delisted currently is around March or May of 2010. (Cant remember exactly). Also, NASDAQ has mentioned that it is considering taking out the minimum $1 stock price requirment and instead sticking with a minimum market cap requirement. I believe the current market cap requirement is $50 million, meaning Sirius stock would have to drop to 0.014 cent per share before they hit that number.
I do not see a share buy back happening in the next 3 years, so that will not prevent a RS.
Just my opinion.