I have never been a fan of reverse splits and I am not sure that I favor it for Sirius. It can be done for several reasons, such as to avoid delisting, but another reason to do it would be to decrease the size of the float. You have limited editions in collectibles, be it baseball cards, art prints or whatever. This usually results in the limited editions value to have a premium over the general product.
My question is this, and Brandon I would especially like your take on it:
Are there just to many available outstanding shares of Sirius to have any kind of meaningful rally? I have seen too many high dollar or large share trades of Sirius stock that didn't even register a blip on the radar screen.
Which would be worse a reverse split or delisting?
Would there be a major sell off because of a delisting by Mutual Funds and Institutions?
I am not advocating a reverse split: just looking for opinions and a debate on the issue.
Newman makes a good point below and one that I hadn't thought of when he said "There is really no way the NASDAQ can delist the most actively traded stock in the entire market".
Demian - Right now I do not have a lot of faith in Mel but who else would be any better? What he said was that "we have no plans for a reverse split". He did not rule it out. I still have to question the number of outstanding shares.