Lost Your Shorts
Equities across the board are likely to see a bit of a run today as the SEC has decided to ban all financial short selling and make other potential moves to stabilize the markets. Many sectors and individual stocks have suffered at the hands of short selling and manipulation much to the frustration of investors. Complaints about stocks being manipulated have overwhelmed the SEC, and now, in the ultimate move of manipulation, the SEC has has issued a temporary ban on the ability to go short on many financial equities. This offers a trickle down effect that illustrates how the financials play a major part in investor sentiment in the overall market.
Investors seem to be taking the news well, and sending positive momentum into many stocks that have simply been hammered as a result of the pervasive negativity that surrounds the entire market like a fog.
One caution I would make is that the SEC move is temporary, and investors need to be aware that in part the reason for the surge is that the enemy of any long investor has just been taken out of the picture. When the ban is lifted, and shorts can return to action, the markets will adjust to that news again, but for now, long investors have at least something to smile about.
With the financials being bailed out with the taxpayers money. The SEC should atleast crackdown on the shorting of SIRI, and help out the little guy/taxpayer. If there ever was a time to shine some light on this problem it is now. Hopefully Mel can someway bring this to their attention.
Street.com
Don’t Quit Your Day Job, Mel
For a radio guy, Sirius XM Radio(SIRI Quote – Cramer on SIRI – Stock Picks) CEO Mel Karmazin hasn’t got a clue how to work an audience.
He bombed so badly at an investor conference last week in California that Sirius stock crashed below a buck. That’s what he gets for joking about the company’s debt dilemma amid a shortage of cash to repay $300 million in convertible senior notes due next February.
Asked about those difficulties, Karmazin quipped, “Am I going to lend the company the money? I hope not. I hope we don’t get to that,” according to The Wall Street Journal.
And that crazy Karmazin didn’t stop there. After projecting savings from the purchase of satellite radio operator XM will increase to $425 million in 2009 from $400 million, he tossed out this one-liner:
“That’s not good, when your expenses are higher than your revenue, right?”
Hilarious. He should give himself a comedy channel right next to Howard Stern’s.
It’s all the funnier considering that Sirius’ shares are facing delisting a month from now if they do not lift themselves out of penny-stock land.
Karmazin later reconsidered his smart-aleck asides saying, “I wish I didn’t say it. I tend to be candid. I said something off-handed.”
Don’t quit your day job, Mel. Then again?
Dumb-o-meter score: 75 — On your way out, will the last shareholder of Sirius XM please turn off the radio?
No offence taken, Everyone has different views and different investment plans.
I see the stock as making it through the next few years and think the return may be much larger.
I have seen a lot of talk on different boards about a buy out, they have have been going on for years, and the comment Mel said he would love to take the company private in the Wallstreet interview.
I think that comment he made was as off handed as the comment he made about hoping he did not have to lend the company money out of his own pocket.
Speaking of those two comments.
I was surprised that he made them. I have read or listen to about everything he has said in the last couple of years.He was always been straight to the point,all business and did not very much from it.
Any thoughts on that?
vaporgold
Mel better start showing his hand because this is getting
pretty ugly.
I have to say did anyone actually read what Mel said? He said himself that, at this point he does not see it going private. He has also said before that he would not consider selling the company until it is at least producing a profit.
Besides the government just took care of making it alot easyer for SIRIXM to get the loan it needs to keep going. A company like SIRIXM is exactly the reason the government did what it is doing. Make sure companies can get loans to say in business and reinvest in their own company. So the economy does not fall off a cliff. Same reason you cant raise taxes on companies like Obama wants to to. That man would put us in a deperssion if he gets his policies put in.
8 million share trade afterhours at a buck and looks like last trade was a/h also at $1.00
16:12 $ 1 8,053,265
After Hours: 1.00 0.00 (0.00%)7:36PM EThelp
Can anyone figure out who this was ?
This probably doesn’t mean much now since we don’t know GS activity since 6/30, but they had a few shares of Sirius.
GOLDMAN SACHS GROUP … 6/30/2008 4,873,332 (648,225) (11.74%)
Tyler, Brandon, Etc., see “What is the SEC thinking?” on conservativepulse.com. It has drawn 243 posts so far.
My bad. The author of the reference article above has written 243 posts on that blog. (See me do 100 pushups….)
Also, main thing in the referenced article above is that the short list ban effectively prevents the shorting of institution SHORTS. Ironic or insane?
Do y’all think Mel is petitioning the SEC to get on the banned short list like GE effectively did?
Mel in a Bloomberg interview last month talked about how retail sucked because it was in “limbo” during the 17 month merger delay.
My question is now that the merger is done…why are we still in limbo? Mel needs to ADVERTISE and ADVERTISE NOW. I think I’ve seen ONE Sirius commercial in the last 3 years. ONE.
I just youtubed sirius, and found a commercial from 2003 with Pam Anderson in it washing a car. It was going for a specific demo…but it felt GOOD seeing a FRIGGIN commercial for Sirius even if it was 5 friggin years OLD!!!!
Is Mel going to wait until INTEROPERABLE radios come out NEXT year until they start airing NEW Sirius commercials?
I only ask, because Mel himself said retail sucked because they were in limbo. But will “BEST OF” option still confuse people? HOW will they explain that potential negative? That TRUE interoperable radios won’t be available for awhile.
WHY WAIT to advertise tho? Why not start a tv campaign NOW surrounding the BEST OF OPTION….and at the same time LINK in peoples mind NOW….that the TWO are ONE and are the BEST RADIO option around? Why not create that BUZZ and excitement about the product NOW??!!!
There are a SHIT LOAD of people who don’t even KNOW about sat radio…let alone how COOL it is…OR THE FACT THAT SIRIUS AND XM merged!
But I BET if you say “EVERY TEAM EVERY GAME!” people KNOW its about baseball on XM.
WHY THE FUCK wasn’t there a similar ADVERTISING push ready about the FOOTBALL season on tv for Sirius? They could have combined that with the new Mike the Mad Dog show AND introducing people to the NEW SUPER COMBO of SIRIUS and XM.
ALL i know is that they BETTER have a cool tv commercial to coincide with the launch of the a la cart radios and the BEST OF PROMO on October 6th.
IF that day comes and there is NO CAMPAIGN on TV….I AM GOING TO BE ONE MIGHTY PISSED SHAREHOLDER.
I’ve given Mel ALOT of slack…and still believe…..but this is ONE THING MEL MUST DO.
I know there are 19 million subscribers now…and that they’ll KNOW about the best of just by listening to their radios.
And the odd person walking into a Best Buy…may SEE a cardboard cut out with the Sirius/XM name together.
BUT TV COMMERCIALS are the ONLY WAY that Mel is going to EDUCATE the public and CAPTURE in 30 seconds what would take YEARS to do otherwise.
Mel NEEDS to do this now that the merger is done. They need to really create some kick ass creative commercials. Ones that will invade the minds and make an impression on people who had NO idea about sat radio before. Young old ALL music types. They need to really create a BUZZ about the product.
Sure…us fan boys KNOW its great. But Mel is preaching to the choir with us. He needs to reach out and make Sirius XM a Household name.
Linking all the new hot artists to Sirius with concerts to attract the young crowd. Have some of the top artists do commercials promoting Sirius. BE CREATIVE.
OPERA for the opera crowd. Sports for the sports crowd.
Create some DAMN excitement.
Anyway….just venting. I want to see a NEW FRIGGIN SIRIUS/XM commercial SOON!!! And I’m not talking about during the SuperBowl. NOW.
FRegan…
I read on a post somewhere that a stockholder talked to Sirius Investor relations and asked them why there is no advertising?
The responce was that Sirius XM was doing everything they could to cut expenses.
I understand cutting the expenses is primary at this stage with the merger. however, sales and subscriptions drive this company.
I thought there would be at least some commercials regarding the merger was completed and the benefits to all the new and old subscibers. It also reinforces that the company is strong and growing etc etc
SiriusXM does not have to spend a fortune but some will placed ads I think would be to their benefit especially in the retail markets.
Vaporgold
I’m sorry…if THAT IS TRUE…then that is FUCKED UP. There are a MILLION things they could cut….but NOW when they need BRAND recognition the MOST is NOT the time to CUT the advertising budget.
And isn’t THATS what MERGING was all ABOUT? The “SYNERGIES”?????
You’re meaning to tell me that they can’t afford a tv commercial campaign to KICK off the merged companies after being in LIMBO for 17 months????
That is friggin ridiculous if true.
THey just paid Mad Dog 15 mill….but would rather keep the MILLIONS of potential consumers in the dark by not advertising???
I don’t believe this.
WHAT GOOD would having the BEST OF and NEW a la carte radios if they DON’T FUCKING ADVERTISE???!?!!!!?!?!!?!?
They better have a commercial to kick off the October 6th launch date or I OFFICIALLY lose faith in Mel.
Friggin,
A just received Crutchfield magazine in the mail and at least the XMp3 new portable is on the cover.
Is this the device Mel was talking about that would be out before holidays or is this it.
Nice sleak device, much better than the Inno.
FriggenRegan:
Why? Why? Why?
Why can’t our company officers have even half the passion you have for this company? Why? It’s a bullshit call and we all know it. We got set up during the merger and we’re set up right now. C’mon. Go to the Sirius website and find me one mention of the merger when you order a sub. I ordered one recently, and not one mention of any kind. That’s free advertisement. I read posts like yours above and simply say we all bought this stock because we liked the product. And anyone still saying Mel is all that should really think about why they are saying that. Because all Big Tooth and Big Hair has done so far in screw each and every individual investor.
Thanks for your posts, they are Right On!
I am guessing that they don’t want to launch any advertising until early Oct when they are prepared tchnically to offer the services, have updates to their websites in order to handle ordering of “Best of” and “Ala Cart” and have the Ala cart radios in the stores.
Yes it’s frustrating, but if they start advertising before they are structurally prepared to handle the customer service of what they are now selling and offering, it could be a nightmare.
Plus 3rd quarter will not be pretty with legal and refinancing charges, etc, so they want to leav the advertising & marketing for Oct 1st & on.
My opinion is they are pulling together I campaign that we will be proud of – hope I’m not wrong, but there must be some ryhme or reason to what they are doing.
Hey SXM. 17 months to merge and what were they doing? It’s been two since. I expect layoffs, real estate sold, downsizing downsizing downsizing. Management salary freeze. Mel takes no salary. Howard takes a cut. Oprah and Howard on tv by NOW saying “We’re On The Same Service”. WTF!!!!!!!!!!!!!!!!!!!!!!!!!!!
Socal,
I agree about the salary freezes and maybe if Howard really cared about the company, he would accept signing a 3 year extension, but cut his yearly tale down by 20% for next 2 plus years and if he is such a hardon for his money, they could give it to him at the end, in lets say 2013.
I agree Mel and Gary Parsons should take $ 1 until they are through 2009 and cash flow positive and profitable by 2010 which seems attainable.
Not making excuses for management, just think they couldn’t realistically work together when they thought they likely were going at it alone towards the end.
FCC screwed all of us hard !
SXM,
10/4. Agree with your post 100%. Thanks for the feedback.
As to the FCC. Martin said, “they are asking for something extraordinary”. ??????. I’ll never understand it, but know with 100% certainty, you have to keep looking forward to win the battles. And that’s what Sirius/XM management should be doing.
Take Care SXM.
Friggen,
I dig your enraged passion.
I really see this delay in advertising as frustrating but agree with some of the comments posted. I believe Mel wants to get the interop radios on the shelves before he starts blasting away with commercials. I believe he sees the interop radios with a-la-cart as the main revenue drivers and if he piles on subscriptions before those units are out, SiriusXM misses a huge chunk of that future revenue stream. We have to believe that your average new subscriber today is not going to buy another new radio unit months from now when the new units come out. Mel has to use the cash he has left to produce the maximum return and that means waiting for the technical infrastructure to first be in place that generates the best return in a resonable timeframe.
I agree with your demand for action but would personally want to make sure the ducks are lined up first. I don’t understand the legality however why he couldn’t have his engineering team working out a new radio ready for day 1 of the merger approval that had complete interop and alacart with XM. Are the comms of both sat systems such that he would have needed XM proprietary data to build it?
Assuming he could have done it, sure it would have been a risk if the merger didn’t go through but I think the right risk to take… So big deal you shut off/remove the XM recv capability and launch a new Sirius radio with alacart. Maybe there’s some rationale for why he didn’t.
Does the NASDAQ delisting clock get reset or unplugged now that SIRI has clawed its way back up to a close of $1 on Friday? Any thoughts on what tomorrow will bring?
PM –
I was wondering the same thing on the clock
Thanks FCC –
It’s only the Ala Cart capable radios that will be in stores and available in early Oct. I believe the interoperables will be set to make the Fathers Day buying season since that has always been a big push for Sirius with NFL/Stern. I don’t think they have these radios completed at a reasonable cost and design that they would be willing to or even have the ability to turn function on/off to receive only ala cart.
Now a big upside surprise for Sirius would be to have the 1st generation of the Interoperable radios in stores by black friday holiday shopping season, but remember they are only mandated to have them in stores 9 months from merger approval.