Karmazin Speaks At Media And Money Conference
Sirius XM radio CEO Mel Karmazin spoke at the Media and Money Conference today, and while there was no “big” news, he did express confidence in the company going forward. With everyone focused on the negative aspects of the markets, Karmazin addressed the biggest perceived weights on Sirius XM Radio and pointed out that the company still has a very viable revenue stream going forward:
DEBT
Karmazin expressed confidence that Sirius XM Radio will be able to refinance the $1 billion in debt that comes due next year. The CEO has remained steadfast in this stance, even throughout the financial crisis that has had the credit markets in turmoil. Karmazin said the company has been working closely with all debt holders.
OEM CHANNEL
Karmazin stated that he anticipates hundreds of millions in revenue from the OEM channel despite weak auto sales. Using a “low-ball” figure of car sales at 12,000,000, he noted that this would still represent 6,000,000 installations that will help generate subscriber growth.
REVENUE
Karmazin is looking for $300 to $400 million in OEM channel revenue next year. In addition, the company derives revenue from the existing subscriber base through their service. Karmazin did not place figures on how the BEST OF programming or A-La-Carte would help the bottom line.
Overall, the CEO remains steadfast and confident in the company as they approach 2009. Investors, who have been beatn up in virtually any sector may not yet express the same confidence until they see the Q3 and Q4 financials. Getting trough 2008 with a good foundation will be important not only to the street, but the company as well.
Position - Long SIRI
SIRI close today @ .48 almost made me pull the trigger again–almost. I’ve been burned on the last three buys so I’m holding to give today’s news from Mel to sink in. Also, I would be just as happy buying fewer shares at a time on on the upside. Someday … maybe.
I meant close at .4913 above. Damn trading tool. I need an upgrade.
No, I did mean .48 … Crap, what a day. I was looking at the ask instead of last near the close. Just another day when upside — with the news this morning from Treasure, Fed, FDIC — leaves SIRI down. But that’s the market generally so I shouldn’t complain, except that this has gone on for sooooooo loooonnnnnnggggg now.
I dropped another $600 today into SIRI @.51 and finally surpassed the 10,000 shares held mark.
I was guessing we would have a run up to the .60s before heading back down and touching the .36 bottom again but now I’m thinking I pulled the trigger too early, again.
With gas prices coming down does anyone think car sales might heading back up?
Let me ask you all something. The debt that is do in 2009, was anyone not aware of this before the merger or at anytime over the past 20 months? Did this debt just appear the day the merger was approved? Did all the analysts other than Wienkes not know about when the debt was due? If they all knew, how did they come up with their stock price predictions that ranged from $4-$9 just a few months ago? What has changed since prior to the merger approval? Nothing has changed. The debt is a non-issue. This stock is being attacked by financial terrorists. This stock is being manipulated day after day. I sent IR an email with a link to a person who investigates stock manipulation. Sirius spent $180 million to merge with XM but will not spend a measly $25,000 to find out who is ****ing them.
SiriusXMinvestor..
The total debt was very public.They projected stock prices as you have written $4 to $9.
From what I can gather the two things that sent the stock COLD, was the length of time the FCC took. That 17 month stall tactic alone pushed the stock out of favor because the companies could not combine sooner and have an earlier cost savings.
The second was the MEL LOAN that he accepted to get the deal done fast as he could before the NAB could step in and get a friendly judge to stop the merger.
I think all of us question the loan move, and we all question why financing was not in place, he did have a few days to get a good loan.
If you throw in slower car sales even though the penatration rate is higher,the amount of shares outstanding, no profit produced to date,(we have had cash flow positive 4th quarters), the loan amounts, the shorting of the stock by who the F— knows, the hedge funds, cramer, motley fool, the street.com, and the ecomony in general… here we are at .48 cents
imho
vaporgold
Vaporgold. That completely sums it up for me.