Sirius Xm stock has been up several days in a row. Personally, I thought we'd see another Goldman Sachs downgrade following positive reports from Citigroup and Merrill Lynch last week. Instead Jim Cramer has made yet another appearance regarding Sirius Xm stock. No one should really be surprised however, as Goldman Sachs last week added 814,465 shares to their portfolio bringing their total holdings to 4,220,646 shares. It seems even Mark Wienkes own firm no longer finds him credible!

So what are the hedge funds to do?  Good ol' Cramer never lets them down, and he sure didn't disappoint them this time. I want to point out that the first thing mentioned in this video interview was that Sirius Xm was the most frequently searched stock within Jim Cramer's website. It also seems to be the stock most talked about by Jim Cramer himself. Yet the first thing out of his mouth was to stop searching for Sirius Xm. The reason this is so ridiculous is that thestreet.com cannot print an article about applesauce without mentioning Sirius Xm radio. Why? Because it is the only thing that generates traffic to that ridiculous publication. So be clear on this...Jim does NOT want you to stop searching.

He then proceeds to explain that investors should avoid Sirius Xm stock until 2009. He offers a plethora of speculative reasoning to make his case. He makes claims that the bondholders will miraculously be able to keep shorting the stock although as most SIRI followers know, there are no shares to short. He threatens future dilution through convertible offerings as though they are the only way to refinance old debt. Hey Jim, ever hear of loans? There are lines of credit available through the automakers such as the former Xm enjoys with General Motors.

Now if Sirius Xm has a better balance sheet come 2009 as expected, they won't be issuing new converts, and the old converts will be covering their already shorted positions from 5 years ago. Merrill Lynch's analyst states in a research report last week that: "As a worst-case, a $1bn convert with $1.50 conversion price could be an additional 17% dilutive, although we do not believe such a scenario is likely."
Jim seems to have a problem understanding new debt vs. the refinancing of old. He should stick with stocks. At least he gets 1 in 10 right in that arena. If he took a look at the potential of Sirius Xm stock he would be screaming buy, buy, buy!

So why all the negativity and speculation? Well apparently Jim has gotten some death threats and it seems he has decided to bash Sirius Xm in retaliation. Several weeks ago he was bragging about how he destroyed companies back in the 80's, and yet this seems to come as a surprise to him. I don't condone this type of behavior, but I have say: Jim Cramer, you might want to try keeping your mouth shut for once.