So here we are as investors, almost one year into the merger and so much has happened.
For one, we have seen the massive wealth destruction in the markets, and bubbles bursting everywhere. Whether you are in commodities, or technology, everyone is feeling the pain right now.
This past week has been interesting, and for me personally, very confusing from a macro market view. From day to day, someone from Washington would come out and say something about the economy, and sure enough the market would respond, either in the negative way, or positive, as the last week has shown. Still the VIX did not break below 40, it should be below 20 under normal market conditions.
A lot of long term investors have been averaging down on their favorite equities but for the SIRI/XM shareholder, this is our only weapon against the feared R/S. While everyone else continues to load up on shares, we have some serious dilution with our PPS. And watching it being manipulated day to day is clearly frustrating, not to mention the SEC is completely incompetent in their ability to monitor the markets.
So here is what we are facing and know:
A potential R/S of no less than 10:1 and no more than 50:1 ratio.
Bankruptcy is off the table thanks to Mel and Malone.
Manipulation of the PPS, and massive dilution.
NASDAQ rules for delisting have been waived for now.
Mark to market / Uptick are the rules being discussed.
Iphone / Ipod application due for 2Q.
So I listened to the CC on Thursday, one thing that was not discussed, and it did not break my heart to have the issue over looked, was yours truly. Mel stated last year that the R/S was for listing purposes only. But now that our dear company has had trouble refinancing the dept, and dilution followed, these issues, really up the stakes for a R/S.
Now we stand here at around .20, with one more dark cloud hanging over us. With so much dilution floating around, a reverse split would be welcome under normal market conditions. Doing it right now would be a death sentence in my opinion.
Waiting until the last possible moment would also reek of desperation.
As share holders, what would be your optimal scenario for executing a R/S?
Also depending on PPS, what ratio, would be ideal for your cost average?
In my opinion, get over 1.00 then depending on market conditions, execute the R/S.
Long SIRI / 7,500 / 2.00av