It Comes Down To Faith
The equity markets are performing poorly. Banks have fallen, and there is the threat that even more bad news could hit the financial sector as Citi becomes the latest target of speculation. People do not know what to invest in, and retirement accounts have been decimated. People, no matter what they are invested in, are expressing dismay and frustration over poor stock performance.
If you are invested in the markets and have not done so already, it may be time to do some soul searching, because like it or not, investments in the markets have boiled down to their simplest form. It all comes down to faith.
Do you have faith in an economic recovery?
Do you have faith in the credit markets easing up?
Do you have faith that consumers will once again feel good about spending?
Those basic questions need to be applied to any equity you are invested in, because these are the core issues that impact nearly everything that is going to happen. When you get to a specific company, you need to ask additional questions of yourself.
Do you have faith that management and the board are acting in your best interest? It seems that the question is simple, but you really should look as deeply as possible. Stocks are performing badly, but it is not unique to one specific company. Are the woes of your investment based on outside influence that are beyond the control of management? If you remove current management, who will replace them? If you vote down a board of directors, who will be at the helm? How long will it take to replace people? What will the impact be on the stock?
For investors in Sirius XM Radio, the annual meeting is coming in late December. Among the items to be considered are the Board of Directors, An authorization to increase the authorized shares to 8 billion, and a reverse split between a range of 10 to 1 – 50 to 1.
Investors are frustrated. That is clear. The question is whether the existing management and board have the capability to steer the course, and whether they have the tools and latitude to make things happen. There are strong arguments on both sides of the proposals, but in the end it boils down to your level of faith as well as what actions will be the most prudent.
Investors should ask questions, participate, and vote. They should also be as informed as possible when they make these decisions, and think about how their action would impact the company. Whether you are for or against certain proposals, you need to think about what transpires in the event that these things actually happen.
If you are against the current board nominees, that is fine, but you need to understand that the company will then be in a position where they need to fill the board seats. Who will those seats be filled by? Will the new board members be aligned with your goals and desires for the company? Are you prepared to have a time period of flux, where new board members get up to speed with the happenings at the company?
If you are voting against the additional authorized shares, that is fine. Have you considered what that actually means? No one likes dilution. Authorizing that number of shares is a scary proposition. The company is looking for breathing room, and flexibility in how they are responding to the current markets. What happens if there is no flexibility? Would this board, or a new board have their hands tied to an extent where their choices are limited?
If you are voting against a reverse split, that is fine. Are you prepared for delisting if the stock price does not get above $1.00. Yes, delisting would take time to process, and a company can appeal, but will even the very process of delaying a delisting impact the company? No one likes reverse splits either, but these are difficult times across the board, and it is in difficult times that difficult decisions need to be made.
It boils down to faith. How much faith do you have in current management? If your answer is that you do not have faith in them, what are your solutions? If you have no solutions on the table, then you need to think deeper.
Some would suggest that there will be time later to address these issues. That is true, but that would require a special meeting, which has costs. If you want the decision to be held off, in what time-frame do you propose these decisions be made? Will holding off on some of these decisions impact the equity? Will it hamper the ability of this, or any management and board to refinance debt, etc.
I think the involvement of shareholders is a wonderful thing. I think people asking questions is prudent. I have seen ideas about refinancing that are innovative and cutting edge, but I have yet to see anyone implement them in a way that takes things to the next level. I have seen people take a stance on certain items, but not think out the next few moves. I have seen people express their votes on certain items without even having heard the Q3 call. What is transpiring with satellite radio needs more than a knee jerk reaction. It needs deeper thought, and most of all demands that you look at you level of faith not just in SDARS, but in the economy as a whole.
Position: Long Sirius XM, No Position CITI
Hope.
Funny stuff above. Thanks.
Vapor
Second The Amen
TO THE R/S and DILUTION and the BOD
………………..,/¯../
………………./…./
…………./´¯/’…’/´¯¯`•¸
………./’/…/…./……./¨¯\
……..(‘(…´…´…. ¯~/’…’)
………\……………..’…../
……….”…\………. _.•´
…………\…………..(
…………..\………….\…. ….
…………\…………..(
…………..\………….\….
Hope.
LOL LOL
Caesar…
To quote you, “Mel needs to make a statement to the share holders”
Hoepfully, Mel will make the following statement at the stockholders meeting.
“We will work our way through this, No BK, No RS, No further dilution, I am out of here I got work to do”.
That’s all I need and want to hear.
vaporgold
Tyler,
You write an article on it coming down to faith, but I heard your last show on Sirius Buzz and you do not seem to have faith yourself or you would at least average down here at .15 cents on a few thousand shares. I understand why, but just making a point that this has gotten really dire.
It’s sad when the author of the blog relating to Sirius has thrown in the towel.
Charles voted against management at a time where we can’t have any more problems, like transition of new management & then you have Brandon who is overly optimistic because he is blinded by his investment with not much to backup bullishness, just like many of us.
We author this blog because we love the Sirius service. It’s probably the only reason we can stand to put as much work into this as we do.
The intention of this site was never to simply post bullish thoughts and articles because of some agenda. I can not see Tylers holdings but, I can tell you that a run to $5 per share is not going to change my life.
So, we aren’t throwing in the towel… we are just writing articles as we always do. Don’t hate us because the news isn’t good, hate Sirius XM and the economy for not giving us good news to write about!
Charles –
You guys do an incredible job and apprceiate the articles and your point of view , as I do Tylers & Brandon’s.
I do think you should have voted for management because they are doing everything they can to combine, cut costs as quick as humanly possible & if it wasn’t for what the FCC pulled, including Hartlieb’s bullshit suits, delays and the collapsing economy/car companies, management would like alot different.
I have some advice for Tyler on the sirusbuzz show. He needs to be less courteous to certain callers that go on and on with their nonsense like the one that called in 2X Thursday. It’s a waste of good airtime. Cut them off, make them get to the point and then you can speak about your opinions.
Anyhow great job guys and hope Sirius can come back to life again. I may just load up under 10 cents for a casino gamble that the financial system and car companies don’t completely collapse.
vaporgold,
” Never quit or give up”. That in essence is the concept that Sirius/Xm must have adhere to. “Faithfully!” I have said it all along; if management of this company had a fraction of the PASSION that we have, and showed us the loyalty that we show them, circumstances would be much different.
One of the reasons that I keep posting comments is because, in a world that seems so indifferent and so jaded, so damn blase’ about everything, I know that I can log on to this and some other select sites and be amongst people that share my passion for radio. Satellite radio, to be specific. Non of us want to see satellite fail. Why? Because, I suspect, we are crazy about it! Our disdain for terrestrial radio is just as big of a factor, no doubt.
We need someone who loves the product and the service, in charge of Sirius/Xm; somebody who can relate to the subscribers desires, and who LISTENS to them. Somebody who is as big a fan as we are. Someone who doesn’t mind busting his or her ass for as long as it takes to make satellite radio the success that it should be. Somebody who approaches the job as a labor of love. Someone that embodies the same FAITH and DEVOTION to satellite radio that so many of us do.
This crisis that has gripped satellite radio has much more to do than just being in debt and having to deal with a collapsing economy. As corny as it may sound, so much of satellite radios misfortune can be attributed to a managerial team that lacks commitment, is unreceptive to it’s subscribers needs, and who’s track record so far leads one to this indisputable conclusion; they just don’t care!
You nailed it, vaporgold! If you are not going to commit to something 100%, then get the fuck out. Otherwise you are wasting your time, and everybody elses.
Charles.
I very much appreciate your efforts and the efforts of all your writers.
Thank you.
Steve.
You and Vapor are right on!
WORK is all I want to know about.
7/24. 365.
sxminvestor….
I have not thrown in the towel. I have the same number of shares now that I had when the merger went through.
I had simply made a decision that I was holding onto these shares for the long haul. I have no need to sell, and no need to add to the position.
Frankly, there are better places out there for me to put my money than into SDARS.
I write about SDATS because I like the product, and have developed many relationships related to the industry over the years.