Sirius Weekly Thread for 4/19/10

[Atypical]

Goldman CEO to Perform Community Service as Treasury Secretary
‘Will Do Less Harm’ in New Post, Says Treasury Spokesperson

NEW YORK (The Borowitz Report) – In a settlement of the government’s securities fraud case against Goldman Sachs, the bank’s CEO, Lloyd Blankfein, has agreed to perform two years of community service as Treasury Secretary of the United States.

At a press conference in New York, Mr. Blankfein said that as Treasury Secretary he would “continue to do God’s work as I did at Goldman, but at a significant pay cut.”

A Treasury Dept. spokesperson said that by performing community service as Treasury Secretary, Mr. Blankfein will be able to do less harm to the economy because he will have significantly less power than he had as Chairman of Goldman.

His experience at Goldman, however, will be “invaluable” in his new role as Treasury Secretary, the spokesperson said: “Lloyd Blankfein’s years of marketing worthless securities have prepared him for the important task of selling Treasuries to the Chinese.”

Mr. Blankfein is the latest in a long line of Goldman chairmen to serve as Treasury Secretary, although he is believed to be the first to do so while wearing an electronic ankle bracelet.

[SiriuslyLong]

Well, Big Ben should be overjoyed with today's open. Let's hope SIRI doesn't get sucked down with it. Part of me says this is a buying opportunity.

[SiriuslyLong]

Well, Big Ben should be overjoyed with today's open. Let's hope SIRI doesn't get sucked down with it. Part of me says this is a buying opportunity.

I know it's odd to quote yourself, but I'm glad to see that the bulls are fighting back today, but there a lot of time left. There was a buying opportunity out there. Stocks that were down around $1.50 are now only down $0.75.

SIRI is hanging tough at $1.07. It's going to be interesting especially if it stays over $1 over the weekend.

[Havakasha]

I would be happy with a pullback (of course i want Sirius to maintain over $1 for the 10 days) There are definitely some stocks i have my eye on at a lower price.


P.S. And as we all know, its Obama and the Democrats fault its going down today. LOL.

[SiriuslyLong]

I As we all know, its Obama and the Democrats fault its going down today. LOL.

Finally he says something that I agree with 100%. LOL. I've been looking at CTL. Nice dividend yield of 8%. They bought Qwest and they are down $1.00 so far. Don't know why, but it is tempting. 8% dividend yield has a spot in my portfolio.

SIRI is holding its own. Good to see.

Actually, take a look at VZ today and read why it's down LOL.

[Havakasha]

The market is starting to move back up. That can mean only one thing.
Bush is in charge.
After all this is what Mr. Socialist, Communist, dumbass, twit has told us is the truth.

[john]

The market is starting to move back up. That can mean only one thing.
Bush is in charge.
After all this is what Mr. Socialist, Communist, dumbass, twit has told us is the truth.

Like all liberial twits they forget this is the age were you can pull back up everything that was said or written (democrats always get nailed with that all the time now). So ether it is that or this was still to difficult for you to understand (I am sorry but I cant explain it any more simple then this).

"Here it is really difficult so I will explain it like you are 12 years old. The market was down because people knew of Obamas polocies the market went up after he tossed (what is now project to cost 848 BILLION) into the economy. There is noone that believes that you cant throw that kind of money around and not have some effect, even if it is short term (the fact is the market would have gone up at least as much if he took just 250 billion and directed it towards small bussiness). The market reacts to long and short term effects the smart money knows this and will take advantage of it. Hence the reason we see SIRIXM PPS go down just after a great CC (I know from your post that that must still confuse you as to WHY it happens). The market knows that while the stimulas had an effect that it will be short term and that the deficit it caused will effect the economy (in ways it will take much to long to explain to a 12 year old). Reguardless the first effect it will have is that it will send taxes up (capital gains) and everyone and their brother knows (except you), what happens to the market just before they raise capital gains. The target date is Jan., so what you will get is people trying to beat out others (playing chicken so to speak) so the market will start to go down well before it happens. Do you get it you dumb twit."


So which is it you are less then 12 years old or is it that like all liberials you conveniently forgot this was already posted. This is the reason why liberials are the biggest hypocrits. Here is the latest example; hey does anyone remember N. Polocy calling for Civility when protestors were calling for killing Bush and for those that dont think it was mainstream what about the book OR THE movie that showed how to kill Bush. Hummm I seem to recall her saying it is great to protest the government. I guess she only ment civility (or in other words, just sit down and shut up) when it is directed towards democrats but towards republicans everything and anything is ok. See what I mean about the hypocritical.

[Sirius Roadkill]

latest spin from thestreet.con . . . I am posting this for general information only for those that may not have seen it but FOR GOD'S SAKE DO NOT MAKE ANY INVESTMENT DECISIONS ON ANYTHING YOU READ IN THESTREET.CON OR FROM ANY OF THE NAMED ANALYSTS CITED IN THE ARTICLE

Part 1:

Why Sirius XM Won't Be Delisted
By Robert Holmes 04/22/10 - 10:18 AM EDT

NEW YORK (TheStreet) -- Sirius XM(SIRI) investors can breathe a sigh of relief: It appears the satellite radio provider's stock will not be delisted from the Nasdaq when the company meets with the exchange for a discussion next week. That, some argue, could provide a floor for Sirius XM's share price. (but Tyler Savery hasn't mentioned that in his recent reporting, are you sure about that?)

Sirius XM shares have closed above the $1-per-share mark for six consecutive sessions ended April 21, which has helped to assuage fears that the company could face a delisting on April 29, when it will meet with a Nasdaq hearing panel. (7 consecutive days now but who's counting . . it's a real nail bitter . . . Tyler Savery has chewed his nails down to the quik - ouch)

For now, a scenario of the stock falling to the Over-The-Counter Bulletin Board or Pink Sheets seems to be off the table. "This is an unprecedented situation with a stock close to penny-stock levels but with a multibillion market cap," says Jack Hain, an analyst with Barrington Research Associates. "That doesn't happen."

Hain says that with few foreseeable negative catalysts on the horizon to drive the stock down, Sirius XM's delisting troubles may be a thing of the past. It wasn't always clear that Sirius XM had a good chance at beating the Nasdaq's minimum big price requirement. While the stock did manage an eight-session string of above-$1 finishes in late February, Sirius XM hasn't finished above $1 for 10 consecutive sessions since Sept. 9, 2008.

If a stock closes below the $1 mark for 30 consecutive business days, it is granted a grace period of 180 calendar days to regain compliance with the Nasdaq's listing requirements or face delisting. To regain compliance, a stock like Sirius XM would have to close at or above $1 for a minimum of 10 consecutive trading sessions.

Sirius XM had been granted a 180-day grace period after receiving a warning letter from the Nasdaq in September 2009. As the stock failed to regain the $1 mark for a sustained period of time, the Nasdaq sent a second notice to the company after a March 15 deadline passed.

Sirius XM immediately requested a hearing with the Nasdaq's Listing Qualifications Panel, which put off any action on the stock's continued listing. When confirming plans to ask the exchange for a hearing, Sirius XM CEO Mel Karmazin laid his cards on the table.

[Sirius Roadkill]

"Sirius XM is one of the most liquid securities on the Nasdaq Global Select Market, we have a large investor base consisting of both individual and prominent institutional stockholders, and our equity capitalization is greater than approximately 92% of the companies listed on the Nasdaq Global Select Market," Karmazin said in a statement.

Funnily enough (not funny at all, coincidental perhaps but more likely well-planned), April 29 could potentially be the day that Sirius XM will say the stock has closed above $1 for 10 consecutive trading days, which becomes another bullet in Karmazin's chamber. On Thursday, Sirius XM was down 3.6% to $1.06, as the broader market sold off. But in even simpler terms, it seems obvious that the Nasdaq would be crazy to delist a stock that is typically among the most traded on that market daily.

The Nasdaq collects a fee from Sirius XM to keep its stock listed. Sirius XM did not respond to a request for information on the fees it pays to the Nasdaq, but according to a Nasdaq listing standards and fees notice from March, a company like Sirius XM, which trades on the Nasdaq Global Select Market and has more than 150 million shares outstanding, pays an annual fee of $99,500 for continued listing.

"The Nasdaq definitely has an economic interest in seeing Sirius XM remain listed," says Matthew Hooligan, an analyst (joke)with Wunderlich Securities (hedgie water boys). "They benefit economically from trading activity. The average volume is close to 180 million shares a day. It's integral or material to the economics of the Nasdaq. And it's certainly not like they're manipulating anything. It's a viable company that should be listed." Hooligan has a neutral rating on Sirius XM and a price target of $1. (gee that's odd, that's not the rule-of-thumb metric you gave on your prior downgrade during the last compliance run you fraud)

Tuna Amobi, who covers Sirius XM for Standard & Poor's Equity Research, cautions that while a delisting on April 29 is unlikely, there still is a chance that the Nasdaq could bounce Sirius XM from the Global Select Market as it has done in to other companies with well-known companies. (poor Tuna . . . clueless bastard . . )

"With the way the minimum price rule has been applied in the past, I think the Nasdaq is blind to whether a company is supposedly iconic or not," Amobi says. "There were several top 10 broadcasters, like Westwood One, that have been delisted in the last few years as a result of this bid price rule."

[Sirius Roadkill]

Even if the stock stays listed on the Nasdaq, the question of a reverse stock split still lingers for Sirius XM investors. There is, however, good news. Despite the negative connotation of a reverse split, as well as Sirius XM's assertion that it will effect a reverse split only if it determines the action to be in the best interests of stockholders, some analysts say that the pros certainly outweigh the cons.

"It would serve the shareholders' interests well to do the reverse split anyways," Barrington's Hain argues. "There are nearly 4 billion shares outstanding and even more on a fully diluted basis. That's an egregious number of shares outstanding. That's the real issue." Barrington Research has an outperform rating on Sirius XM and a $1.25 price target.

Hain says that it is typical for some information content to prompt a reverse split, such as the share price has declined consistently over a long period of time and the reverse split is a means to an end to try to maintain listing. "Clearly, we're not in that type of situation here, and for that reason I don't think a reverse stock split should be viewed through that filter," he says.

A reverse stock split would artificially raise Sirius XM's share price to a level that would entice more buyers, such as institutional buyers and mutual funds. "It would open it up to more investors if they did a reverse split," says David Joyce, an analyst with Miller Tabak & Co. "The benefit would be to make it a more palatable price point because there are some institutions who cannot invest in stocks with prices under $5 or under $1. That's not a fundamental call but a pricing level restriction in their own investing charter." Joyce has a neutral rating on Sirius XM and a $1.25 price target.

Of course, given the negative connotation by market participants, a reverse split comes with a downside. S&P's Amobi says that a reverse split is a gamble for a company like Sirius XM and that its management team is probably still calculating the pros against the cons.