If the SEC gets the balls to put the clamp on GS that might help. Everyday their shares are imploding as well. Today they got caught in the VW shorts to cover and are getting blown out. Maybe someone will be shorting them down to BK status.
If the SEC gets the balls to put the clamp on GS that might help. Everyday their shares are imploding as well. Today they got caught in the VW shorts to cover and are getting blown out. Maybe someone will be shorting them down to BK status.
The SCUMBAG wienkes is spreading the cancer AGAIN...
AP
Analyst reduces financial forecasts for Sirius
Tuesday October 28, 1:18 pm ET
Analyst lowers Sirius' subscriber, cash flow estimates and price target
PHILADELPHIA (AP) -- Shares of Sirius XM Radio Inc. fell on Tuesday after an analyst reduced his subscriber and cash flow forecasts for the satellite radio provider and maintained a "Sell" recommendation on the stock.
Goldman Sachs analyst Mark Wienkes also cut his six-month price target in half to 25 cents. In afternoon trading, Sirius fell 5 cents, or 13 percent, to 33 cents. The stock has traded between 22 cents and $3.94 over the past year, and has lost 87 percent of its value since January.
Wienkes believes the company will reduce or miss its subscriber projections as demand erodes.
He also noted that Sirius' revenue isn't enough to cover operating and capital expenses, leading to negative free cash flow while the company continues to be dependent upon outside financing in a tight credit market.
The analyst said shareholders are facing dilution of their holdings due to higher interest charges or issuance of new shares. Sirius recently gave debt holders 67 million shares to retire $30 million of $300 million in convertible debt -- and it could do it again.
Sirius faces $1.1 billion in debt coming due next year. The company is seeking to save $425 million in 2009 from its July merger with XM and trim its debt burden to reach profitability.
So my question is THIS......does the Reverse Split enable Sirius to "Cover" those converts by giving the illusion that the stock is over $4 even tho it still has the same value?
Because if that is the case, then the Reverse Split is going to happen no matter how LOUD us longs scream.
I was under the impression that the RS was for "cosmetic" reasons only so that it looked MORE inviting for potential investors.
But if the RS will help Sirius with the converts....then I'd say us Longs are SCREWED.
I still feel that the shorts will come in and bash the stock back to a $1 after the RS....but if it is timed right, it won't leave the shorts enough time before the debt is due.
A 1 for 50 RS at .25 cents a share would give a $12.50 stock price.
Over time the shorts would strip the meat from that price back down to $1 and then below.
But can anyone answer my question? Does a price of $4 or above...even if it is an "inflated" Reverse Split price take care of the convert issue?
Another shareholders comments.....Maybe just another rumor?
Guess who has a Siri buy order in at $0.28, after their new
target of $0.25?...The sorry bastards at Goldman!
What the Hell is the SEC doing? What the Hell does it take to
get an investigation into their blatant manipulation. They are
obviously entertwined with countless politicians. Goldman was
a major player in the mortgage melt-down and the Fed's are handing
them money hand-over-fist.
It's a sad and disgusting situation.
Letters upholding other, more objective analysts' opinions could also have a positive effect. It's a war of words.
Wienkes contends that the company’s inability or unwillingness to
have previously refinanced its capital structure “is now unlikely to preserve much, if any, equity value.”
-----------------------
"Unwillingness to have previously refinanced it's capital structure?"
What do you think he's referring to here?
Remember Mel's remarks in September, that "we have been contacted by the holders of those bonds, who said, gee, we'd really like another piece of convert."
This is blackmail pure and simple. GS wants a new convertible in February and Mel said no. So they punish the stock to try and force his hand.