I am shocked. I may actually cash out now at 27 cents! As a LONG this blows my mind since I swore I'd never sell.
But with the VERY real reality of a 1 for 50 reverse split looming....I figured out on paper...that even SELLING NOW would be better than waiting.
If I cashed out now at 27 cents, my 10,000 shares would get me $2700. WHICH TOTALLY SUCKS since my initial investment in Sirius was around $30,000!!!! (Alot for an artist like me).
NOW....if a 1 for 50 RS happens, I'll have only 200 shares!! At roughly $13 a share as it stands now.
BUT...then the shorts would descend and rip that SP to pieces! Thats WHAT they are waiting for! ANYONE...BRANDON & TYLER included who think otherwise are INSANE. I'm sorry. But have they not LIVED thru the last 3 years??? The shorts have bashed this stock down to where they have hit bottom. A RS would be a shorts WET DREAM. It'd be like throwing red meat into a tank full of hungry piranha fish.
Anyway, that $13 share price would be cut down to $5 almost overnight.
My 200 shares at $5 would net me a mere $1,000.
Worse....Sirius would probably be beaten all the way back down to a $1 which would net me a whopping $200 if I cashed out.
And lets not even GO below a dollar now...which in this economy I could see happening.
This move would be SURE DEATH for ALL LONGS who bought in at $6. Even if they've averaged down like I have....MOST were only able to lower their Average PPS to around $2.50 or so.
If this 1 for 50 reverse split happens and then the shorts knock us DOWN again(which I assure you they will)....then it'd take Sirius moving to over $150 for many of us JUST TO BREAK EVEN!!!!!!
Where as now $2.50 would bail ALOT of us out. Plus at least there is a hope without the RS of a company buying us out and helping us REACH that break even point or close to it. HELL...at this point $1.50 buyout would get me closer to Break Even then a RS EVER WILL.
So when I hear Brandon and Tyler saying their greatest FEAR is a BUYOUT at these levels....and YET they say a 1 for 50 REVERSE SPLIT IS GOOD, I have to think they either don't own alot of shares or have LOST their minds!
I have laid out what a Reverse Split will do to LONGS like me....and when compared to a BUYOUT at even $1.50....its a NO BRAINER.
ALL LONGS should be AGAINST the RS if they ever want to make their money back. HELL...cashing out now at 27 cents would give us MORE then what we will ultimately get in a 1 for 50 reverse split and the SHORT aftermath that would be to follow.
So WHY on earth would Brandon and Tyler praise a RS over a BUYOUT when cashing out now at 27 cents would even give us LONGS MORE $ than if we waited for a RS and short attack???
Personally If I decide NOT to cash out now, I'd RATHER take the chance at losing my money in a BK than a RS by Sirius. At least if we vote NO on the RS, I'll keep my 10,000 shares and there is still a CHANCE of some miracle happening either thru a buyout, GREAT news from Mel(HA!) or the economy turning around(HA!).....but at least theres a chance.
With the RS...I SEE ONLY DOOM for us LONGS.
Brandon and Tyler make it sound like Sirius the company will be no more. Puh LEASE. NO MATTER WHAT happens, the service we love WILL SURVIVE. THAT won't go away.
We are talking about the stock here.