[QUOTE=Demian;4934]http://www.schaeffersresearch.com/co...e&blogid=88724
Sirius XM Radio Inc - Is this Bounce Different?
10/27/2008 3:41 PM
Interesting article. Nice find!
SIRIUS XM SATELLITE RADIO FORUM
[QUOTE=Demian;4934]http://www.schaeffersresearch.com/co...e&blogid=88724
Sirius XM Radio Inc - Is this Bounce Different?
10/27/2008 3:41 PM
Interesting article. Nice find!
Look at this 30min chart.....it looks like that is the resistance to cross. It just happened to match up with the 100% gain mark from the recent low and the previous spike on the chart to .45 on Oct. 16th.....
http://www.schaeffersresearch.com/im...02708sirii.gif
Macke says that the equity isn't worth anything........but the company is, isn't it Macke? I guess he thought the equity was worth something when he was pumping it all that time before the merger. How do these guys get away with this crap?
http://www.thestreet.com/story/10444...FREE&cm_ite=NA
Fast Money Pops & Drops
'Fast Money' Pops & Drops: Nvida, No
10/27/08 - 06:51 PM EDT
Sirius XM Radio soared 30%. Macke says "sell the rally on SIRI -- the equity probably isn't worth anything."
I found this recent Reuters report on SIRI floating around on the internet - they rate SIRI Outperform....
https://research.scottrade.com/resea...ocKey=24-A0E8A
I just thought of something. Isn't it curious that the stock found resistance right about at the share price level that SIRI exchanged stock for debt a few days ago. Those shares were valued at .45 a share. Is there anything to this. What did whoever exchanged the debt for those shares do with those shares?
mmmmmmmmmmm............
http://news.moneycentral.msn.com/tic...79&Symbol=SIRI
"Sirius XM Radio Inc. swapped $30.5 million of its debt for company stock, as the satellite radio provider moves to shore up its balance sheet......The exchange translates to a value of 45 cents for each share received by debt holders. Sirius shares closed at 39 cents on Monday, up a penny. The company disclosed the deal after the market's close."
How can Macke make an ignorant statement like that ?
He makes them all the time. He was the guy that said to buy the "dog star" all that time before the merger. He was also the same guy that was pumping oil up near it's peak...Originally Posted by sxminvestor
Demian
This link does not work. Could you post the article.
Thanks
Keysmark,
It's a PDF and I tried to upload it to this site but it exceeds the file size restriction.
Send me a private message with an email address and I can email you the file. I also have a ML report from awhile back I can send you too....
Demian
Article by Nick Perry of Schaeffer
http://www.schaeffersresearch.com/co...24&single=true
Sirius XM Radio Inc - Is this Bounce Different?
10/27/2008 3:41 PM
Keywords: SIRI
Shares of Sirius XM Radio Inc (SIRI) are on fire today as they gain more than 30%. However, the headlines are quiet. I checked through my usual news sources and found little to account for the gain.
I was exchanging emails with Bernie Schaeffer earlier today and he noted a similar lack of a catalyst. Here is what he said...
"I don't know what's driving today's rally, but the stock is right at moving average resistance on the 30-minute chart. Also, double the low of $0.215 is $0.43 and today's high is $0.419. Market cap is, amazingly, still close to $1 billion, and 'enterprise value' (stock plus debt) is likely a big multiple of that."
Since he sent me that email, the stock did rally tick to an intraday high of $.44 but quickly reversed from that level. Here is the chart he noted...
Chart Courtesy of Thomson Financial
Short-term charts such as this can be a good way to identify near-term resistance levels. In this case we have the 200-unit exponential moving average. The shares pushed right into this trendline before turning lower. For those that like a slightly longer-term view, I have the daily chart below.
Chart Courtesy of Thomson Financial
The obvious trend here is the steady erosion in value. An interesting point is what Bernie notes about the market cap. While this is a stock that trades below $1, it has a market cap of nearly $1 billion. Some will look at that the stock price alone and say that the stock has no where to go but up. However, it is important to consider "how much" stock is out there. Or think of it this way, that is a similar market cap to a companies such as Deckers Outdoor Corp (DECK), which is currently trading 76 and Panera Bread Company (PNRA) which is trading at 37.
Putting the market cap discussion aside, I am curious about the strength. The daily chart shows the stock has been bouncing in and around oversold conditions for last two months. If we are seeing the initial stages of a sustained rally out of oversold, that stock will need to take out the intraday resistance. Keeping an eye on the intraday charts can give you an early heads up to changes in the underlying supply and demand situation.
-posted by Nick Perry on 10/27/2008 3:41 PM
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