They'll be able to buyback shares down the road, but by then they will be worth a lot more than they were sold for.
I guess this is why a reasonable loan would be better than dilution.
They'll be able to buyback shares down the road, but by then they will be worth a lot more than they were sold for.
I guess this is why a reasonable loan would be better than dilution.
Other than concerns about being delisted there isn't any good reason for a reverse split. With the extension from Nasdaq until 1/15/09 and them not knowing about the extension when the "Preliminary" Proxy Statement was filed there is no need to vote in favor of the Rev Split. Why trust them to do this when it is not necessary and if they execute their business plan as projected the stock will be trading above a $1 by the end of the 2nd Qtr, 09. If its not, we're screwed anyway.
If the RS is not because of delisting then they need to explain why. Authorization of 8 bil shares and then RS, sell chunks of new shares at the new price to institutions, don't release the authorized shares that have been reversed to the public, pay off debt, that might be a plan.
Right Cos. I agree. You put it in a nutshell. No one should vote in favor of a revsplit under current conditions. The fact is that Mel Karmazin could lend SIRI the February money it needs from his own pocket. He is sufficiently wealthy enough to do it. He alluded to that fact in a joking way during the Merrill Lynch presentation. If Mel announced that he would loan his own money to the company it might have a positive impact on the SP. That Mel remains tight lipped could be an indication that he wants the SP beaten down. Homer and others could give some reasons why that could be a good thing. AFAIC, (using Mel's unsophisticated term) it sucks.
Why would Mel let Rupert Murdoch or anyone else steal the company from him (us)? Isn't Mel's money as good as Rupert's? Hey Mel - put your money where your mouth is.