NASDAQ Extends De-listing Deadline – Three Months
The threat of a reverse split for Sirius XM Radio has just eased up a bit thanks to a decision by NASDAQ to extend the delisting freeze to April 20, 2009 from January 20, 2009. The NASDAQ news comes on the heels of shareholders overwhelmingly authorizing a reverse split just yesterday.
With typical extensions that companies under the threat of delisting get, Sirius XM shareholders can put the delisting issue on the shelf until at least the Fall of 2009.
[NASDAQ Press Release]
Position – Long Sirius XM
The chips sure do seem to be starting to fall in favor of siriusXm finally. SiriusXm Will need to get the debt refinanced and after that they will be above a dollar and the threat of delisting will be gone completely. SiriusXm outside of the threat of debt looks really good in the next 5 years. They added two channels back, They resigned bubba. They seem to be listening to the consumers. This new delisting suspension really means that the only thing we have to worry with is that nasty nasty debt.
SyNiSteR,
I agree with you. This is a marathon, but we live in an age of impatience and immediate gratification. They still blow away unlistenable terrestrial radio, and nobody has the CONTENT and the nationwide COVERAGE that they do. Once you have it, I don’t know how you can ever go back to that dreadful AM/FM. If the auto industry can get their heads out of their asses and management takes their heads out of the sand and listens to the subscribers (and consumers who haven’t taken the plunge), I really don’t think this venture is as hopeless as the skeptics claim.
Just my gut feeling on the situation. You just might be right; Sirius/XM just might be ready to catch a break. Hopefully this technology will attain the success that so many predicted just a few short years ago.
100 bucks says they will have to extend it a 3rd time next year. 🙂
You are correct. There will be at least two or three more extensions promulgated to forestall the delisting of hundreds of companies. I wish people had not voted in favor of the RS and the dilution. Some leadership here might have helped. Nah, who am I kidding?
Is this Jacob Dylan? (Wallflowers) Huge fan, and your dads show is great!!!
Themes, Dreams, and Schemes!!! 🙂
Mel’s excuse to use the reverse split to avoid Nasdaq de-listing is just that…an excuse. Now that the reverse split has been authorized by the shareholders, it will happen. No matter what even if the stock price were to go higher which seems unlikely at this point. This stock is dead money for us longs for a while. We will not hear anything on the debt issue till Feb or March. Also, the possibility of a reverse split will continue to keep the stock price at these depressed levels.
.116
I wonder if that nasty little tumble of the pps at the end of the day was options expiration.
We really need to bring back the up-tick rule, and the SEC needs to maybe, possible, start doing their job for a change. @#%&%*@$!!!!!!
Dread,
There is a take on Fridays tumble, that Siri has been removed from the Nasdaq 100, and was rebalanced at close Friday. Didn’t waste my time verifying.
Hey Dread. This stock is DONE! Those that know, know………….
Merry Christmas!!
Dread been following you NOG. What do you think?
Looks like its getting to be that time again. The only thing that is starting to bug me is, the price of crude. Not that I am complaining, but NOG use to follow crude, now its a free for all. I will try and walk into this one again, around 2.50, or below, if she gets there.
Hey SRF,
Just so you understand where I am coming from. I don’t like to recommend any stocks to anyone, especially in this casino. I regret opening up my fat mouth about this one, not that I don’t want other people to make money. I just don’t want anyone to get burned, then come back to me and flame me for it. If you like what you see and you have a range that you feel good about, then go for it. Its just the old buyer beware mentality right now. I am getting nervous about all of my trades right now, just because the end of the year is so close. I don’t like trading around this time of the year.
Volume for NOG was high on Friday, and there was something I missed when the Loral article came out, 90% institutional ownership on that stock. If that is correct. But yeah, good luck out there, and happy trading!! 🙂
Dread.
Your funny! Your getting “Poster Paranoia”. LOL
Now worries here Dread. How could I roast anyone who recommends a stock that tanks. Cause, you won’t ever beat the greatest TANK job ever.
Compliments of one Mel Karmazin.
Hey Dread, I get your point regarding end of year trading. Light volume, some redemptions will occur.
Have had some luck as you have just going with the volatility. So, happy trading to you DREAD.
And never have regrets DREAD. All we can do is work for our next positive trade.
I like that one!! Poster paranoia!! 😉
AOL cover story today…
Sirius XM
There is a theory that falling car sales will undermine the sale of Sirius subscriptions. The company says that it does no better than breaking-even in the first year it gets a new customer though GM. But, a shrinking subscriber-base is not good news for the satellite radio company’s future. Sirius will be out of business, perhaps before mid-year. Who picks up the pieces? The logical choices are a healthy car company like Toyota or a satellite firm like DirecTV.
Is AOL still owned by time warner?
Hmmmm?
You’re getting 3 x as many miles in your car for the buck as you used to thanks to the softness in the price of gas. Now maybe one day OPEC will put the price of gas back in orbit but for now, Sirius is a very affordable piece of the sky.
I’ve finally seen a few Sirius Xm ads. on TV. They were OK @ best. They are missing the boat. They need to go after the younger crowd of 16 to 30ish. I look at the I-Pod when it hit the scene and they went right after that group. I think Mel really needs to look at the image of the company. I think it’s geared too much to the boomers. Not that you want to neglect them, but the younger crowd is very passonate about their music and are more impulsive to buy into what is “cool”. Sirius Xm is cool.
Exactly! They need to market the XMP3 to the Ipod users.
Does this mean anything, please weigh in if you know.
I am a “Boomer” and a SatRad subscriber since Feb 2002. Sirius stockholder for a number of years.
I disagree with the 13-30ish crowd theory. Nowdays untill you’re 25 or so where is your own money from? With the ecomnomy what it is, SatRad IS a luxury. They need to focus on boomers more IMHO. No ads in AARP,Time,Newsweek,MSNBC,CNBC,CNN,MSN.com,AOL.com,WSJ,TVLand,etc. If they’re going to have yaking DJ’s, feature a no-s**t “retro” FM Underground program circa 1968 – 1974. Most of the good programming on SiriusXm has either been diluted or eliminated by the merger.
My enthusiasm for SatRad has waned since the merger. Spending good money on schlubs like Stern,”Bubba”, “O & A”; Greenstein has the balls to call “Bubba” an asset??? He’s the executive in charge of programming.
What drugs is this man on???? Mel & Senior mgt. don’t have a clue. They deserve to fail. They are too entrenched in the commercial terra radio mindset.
Recondo, There are millions of people that don’t even know what Sat. Radio is all about or what it offers. It’s the younger crowd that not only is more passionate about their music but a lot of boomers learn of new tech. from their kids. I-pods were mainly bought by the younger people and they showed a lot of us boomers the benefits of it. That’s the reason to go after them like Steve Jobs did as they are consumers that are buying music even if it strains their budget. Also a lot of their parents will pony up to pay for their subs. My 19 & 22 year olds fight over the crappy car because it has Sirius Xm. The image of Sirius Xm needs to get an ad campaign going directed at this age group. Look what M.Jordan did for Nike! These kids get their parents to pump out $100’s for shoes that have a swoosh logo on the side. They need a young Icon to get more of their attention. We all look at and crunch the numbers but Sirius Xm needs to be proactive not reactive. If you get the subs. then all the anxiety melts away. My 50 year old wife wants a Nano-Ipod for X-mass and if wasn’t for my kids she wouldn’t even have thought of wanting one.
Point taken.
However,how many Boomers & older don’t know about SatRad that are empty nesters? There are so many ways to market this medium and SiriusXM is not being proactive at all. I think SiriusXM should be advertising to all types of demograpics. I don’t agree that BUYING kids the newest & greatest is the way to go. My wife likes SatRad and we use it when on a trip and we listen to several channels via DirecTV at home. She is not interested in iPOD/MP3’s whatever and she has a BS degree in Business Admin. I’m still in the military reserves and while I was in the desert she used my rig in her home office and loved it because the music/entertainment was available at the touch of a button with no time wasted downloading. She’s on a computer all day and the last thing whe wants to do is spend even more time on one at the end of the day downloading stuff. Can’t say that I blame her
We have two kids in college and even though they think SatRad is OK they aren’t near the fan of SatRad that I USED to be. They basically have a take it or leave it attitude. I’m not about to get a subscription for them because it would involve retrofitting their rides and they really aren’t in a car much unless on the way home for the weekend. They have other types of music in their dorms(mainly CDs{burnt or bought}& college radio). I have two daughters and they don’t download that much. They don’t have time. In fact I’ve asked them how many of their friends know about or have SatRad. They know some kids that have it in their cars but it’s not a big thing for them to have. They’d like to have it in their cars but UNLESS I pay for it they can live without it. I’m not about to pay for something that is a casual use for them at best.
With that in mind, I stand by my premise that there is a large untapped pool of mature individuals with time and discretionary(for now anyway)income that SiuiusXM is not focusing on. I know it’s not scientific but everyone that I know who is a user of SatRad is someone who spends a lot of time in their vehicle or is tired of terra radio(I used to be on the road a lot but my main motivation was due to how pittiful terra radio had become).Also they are WORKING for living. Knowing that terra radio is focusing less on Boomers & older, a simple SatRad system that offers superior programming to those demos is a no-brainer that apparently SiriusXM is not investing advertising time on.
I have a generation 1 SkyFi that I switch from car to office. its an easy set up that even seniors could use and enjoy. Offer them a new generation SkyFi at a greatly reduced price and see how that works (even on a stereo clock radio with an auxillary input or a compact stereo like the one in my office).
Lost 95% of my Sirius stock value BTW. I don’t think I will EVER get my money back.
Thanks Mel & senior mgt. You people are doing a SWELL job!!! Mr. Greenstein’s ability as executive programmer is AWESOME!!! If I didn’t know better I would swear he was a commercial radio executive in his pastlife……..
The stock is done? Those that know, know?
If the debt isnt redone you are likely correct. It will hurt.
If the debt gets redone this stock is just starting to live. The next 5 years look
really good for sirius. They dont have to worry with paying debt until 2014 and they are going to finally be making money. The first couple of months of the new year will tell us all if this stock is going to make it or not. With being delisted not a worry any longer, The only hurdle left is the mountain of debt. If they clear that hurdle this stock is going to be a 2 or 3 dollar stock again if not more. Its a risk but to me one worth taking because i believe even if the conditions arent the best they will get a deal done to redo all debt.
.11 is DONE!! When you can buy 1k shares for $110 bucks. Posters like you that continue to post what you just posted, simply do not own shares in my opinion, and simply rant away for whatever your purpose is.
What do you mean it will “likely” hurt. Hurt more than .11? The theory is that we go to .08 next. Is that hurt? Do you really believe that the only way R/S happens is because of delisting?
We will see……………..Then many here will finally face reality………..or not. At .11 it truly does not matter. That being said. I would be interested in joining a legitimate shareholder legal proceeding, in an effort to recoup some of my investment losses.
I think Mel is currently a close second to Madoff.
It danwed on me why sirius xm radio with beat Slacker.
Sirius = pay for music you want to hear
Slacker = pay for skips to not listen to music you don’t like
I’d rather pay for content I want to hear, rather than content I want to skip. Who’s with me? And I like the programming aspect of sirius xm radio much better.
I just received a special from slacker in my email and this was like the resulting epiphany… lol
Trust me, I own Shares. Of course i cant really prove that to you but i bought in well before the merger a couple of times. Yes, It could hurt more than .11. It could be 0
The company is going to survive regaurdless. It might have to take bankruptcy but its going to survive.
The Reverse split could happen for other reasons than just delisting but i doubt it to be short term.
If they tried to pull a reverse split right now it would be suicide.
Everyone would like to still blame mel, Apparently you are still in that group. I wish people would look at the 8k forms for the 3rd and 4th quarter and review his statements and see if they arent similar. What he has said he has been doing. Mel K has lost money just like the rest of us as ive said before. He isnt out to get you or us. He is doing what he can in less than favorable conditions.
Had the economy not changed, The debt would likely have already been done, We would have had alot more subs and everyone would be talking about what a good job he done with this company.
If youve lost money i feel for you, TRust me ive lost too. I dont like it no more than you but just look at this and be optimistic. There is a chance for failure but also for recovery.
SyNiSt3R….
In all honesty I can’t believe the way you come out to protect Mel.Mel can do no wrong. It was his decision not to walk away from the merger when he should have.His decision to take the loan from hell.That is why we are at .11 and on the verge of BK if the loans don’t get approved.Yes, Mel made those decisions that put us where we are now.
Investors have lost from hunderds to millions and he is not accountable for his actions??
You act like it is perfectly acceptable for Mel to wipe out all the investors and file BK. It is not his fault though…right?
CEO’s from companies look at mergers all the time. Sometimes they merge, and others times walk away because they think it is not in the best interest of the stockholders of the company period.You don’t gamble the fate of the company on one decision alone.
Sirius also has debt to pay before 2014. besides the 995 million next year, 230M in 2011, 248M in 2112, 500M in 2013, and a whopping 1.3 billion in 2014.
Go look at the free cash flow projections for those time periods.Those CF projections are just that projections.A lot of IF’s
I want to see this company succeed. Will it?, I have no idea any more.
Apparently, I am also in that group you speak of that holds a CEO accountable for his actions, which they should be, and that is fine with me.
imho
vaporgold
Hey Vapor,
Good evening. Hope all is well. The nerve, expecting a ceo to be held accountable. lol.
Hey Vapor, right now with the current shareholders that are in place. Mel and the board can run amuck, with little recourse for the unsophisticated investor, other than legal.
Which of course takes years. No one is going to come to our rescue, buy up a large percentage of shares, and demand management changes. So we are left with this.
That being said however, any finance company being asked to invest in this company is seeing the exact same situation, and they have plenty to say, BEFORE they hand out the cash.
Which leads me to believe that Mel will be unable to accomplish financing of any value based on the assessment of banks who are represented by the same analysts, who recently have called this companies leadership into question.
The management of this company will only be able to live in a fishbowl for so long.
So my friend Vapor, you know how it goes. Me, it’s all my fault they continually post, because I bought the stock in the first place and I should have known better.
Take Care Amigo,
Socal
Right now I am blaming everyone, from the banks that gave out loans to people who could not afford to pay them. All the way up to the government and special interest groups, that created this bubble.
I am also blaming the moderator for deleting my last post!!
Come on that was a great post!!!! Don’t be a Scrooge!!
Hey Dread why the delete post? Must be like the new channel lineup. Things getting censored. Good luck on your trades this week.
I don’t know why it was deleted? I found it to be pretty damn funny!! It was Edgar Allen Poes, (The Raven), with some modifications by me. Good Luck this week too, and everyone have a safe Holiday!!!
Here is part of it, if it doesn’t get deleted.
`Prophet!’ said I, `thing of evil! – prophet still, if Mel or devil!
By that Sher price that bends below us – way below the price we both adore –
Tell this shareholder with sorrow laden if, within the distant future,
It shall clasp a sainted price whom the longs can adore –
Clasp a rare and radiant price, whom the investors can worry no more?’
Quoth Mel, `Nevermore.’
`Be that share price our sign of parting, Mel or fiend!’ I shrieked upstarting –
`Get thee back into the tempest and the Night’s Plutonian shore!
Leave no stock split, as a token of that lie thy soul hath spoken!
Leave my shares unbroken! – quit the bust above my door!
Take thy beak from out my heart, and take thy form from off my door!’
Quoth Mel, `Nevermore.’
And Mel, never flitting, still is sitting, still is sitting
On the pallid bust of Pallas just above my chamber door;
And his eyes have all the seeming of a short seller that is dreaming,
And the lamp-light o’er him streaming throws his shadow on my portfolio;
And my shares from out that shadow that lie all over the floor
Shall be lifted – nevermore!
Tyler and his “overwhelmingly passed” comment about the reverse split amazes me. To all who supported the R/S this is what you get. And you are bringing down all of the rest of us with you. What did you think, that the share price would go up with a R/S and extra shares authorized being voted in.
All of the “unsophisticated investors” need to get a clue and understand what this is going to do to the stock.
Heck when they reverse split and the shares are worth $2+ you’ll probably think that you are actually doing good with your investment. Please. That’s why such a large number of investors get burnt. This stock is toast.
I hope all of the yes voters are happy. You joined Mel in the screwing.
I dont try and defend Mel, I just try to look at the facts and base an opinion off of those facts.
You stated that mel could have walked away from the merger. He could have and where would that leave us? Sirius might have survived. Xm wouldnt have. A major player would have likely bought Xm with more money and sooner or later ran sirius under the table. Then again, Both companies might still be here and each would still be struggling just as siriusXm is today.
We could argue the what ifs all day about that point and it wouldnt get us anywhere. We have no way of knowing.
You talk about how much investors have lost. They have lost alot. I wont deny that.
But lets blame steve jobs then for apple losing over 100 dollars a share on its stock. Lets blame
googles ceo for losing about 400 dollars a share from its stock. Lets blame Intels ceo for losing money too. Youre looking at siriusXm as if its the only company to lose investors alot of money when the fact of the matter is youd be hard pressed to find anyone thats made money in the second have of this year.
i dont like it, Clearly you dont either but Mel K isnt the only Ceo faced with this problem.
You also talked about the company going Bk. LIke its just a automatic conclusion that it will.
I dont think that anyone at SiriusXm wants to see the company go bankrupt anymore than we do. Why would they? Give me a reason.
If you check sec filings youll see that as of Dec 18th there was 5 more SiriusXm insiders who bought shares of this stock.
If this company isnt going to last or going bk the insiders wont buy. Insider buying is always a good sign.
Im not sitting here trying to bash your comments or say that you dont have reason to be upset. I agree in part to some of the concerns you have.
Lets just not get carried away in the blame game. There are alot of factors in this.
The best we can do at this point is just wait and see what happens.
What 5 insider purchases are you referring to? No-one on the inside has touched this stock other than Mel’s head fake purchase before the bottom dropped out of the stock in August. Tyler’s radio show comments don’t sway me regarding insider overexposure here. If management had faith in their recovery plan, they would be gobbling the stock up at these prices. Their overexposed options are worthless until this stock gets far out of the crapper.
Now a more reasonable plan would be to pay their ENTIRE salary in options.. Now then you would convince me why they are not buying right now!
Deny Deny Deny……….Worked for William Clinton
You said: “Youre looking at siriusXm as if its the only company to lose investors alot of money when the fact of the matter is youd be hard pressed to find anyone thats made money in the second have of this year.”
First of all this stock needs no cover. It lost investors money before the melt down and continues to. With that said, I am still a wary investor in this stock. I have many more shares now, will little equity. To clear things up a bit, It was Mel that took on $550M of New debt at the time of the Merger, while loaning shares of the company (our company), to Bond Holders of this debt. 260 Million shares to be precise. So that They, not anyone else, could Short the stock. He called it “Ugly”,….. and I have learn to call it “previously undisclosed”. This, along with all of the other merger related, renegotiated debt, that was required under “Change of Control” requirements, $700M Senior notes, now at 13% (16% yield) and the $400M that was 1.75% reset to 10% (still due Dec. 2009), and the New Debt, previously undisclosed, which set the common share price at $1.50, and then gave the Bond Holders control of the Stock Price. Who else did this if not Mel Karmazin? I am a believer in Mel’s management of the past and still think he can do the right thing. The right thing now is to understand that He Is Accountable for These Actions. Now he needs to find a way to take those “LENT SHARES” of the Market while refinancing other Convertible Bond Debt.
COS:
I like that. “previously undisclosed”.
F-IT!! I walked in at 2.36, watch it goes to a dollar!!
SIRI stock is in the toilet – time to turn shit into lemonade…
Thanks Mel….
Normally I try to stay on the sidelines, but I felt compelled to comment.
Let’s take David Frear for example.
He makes $525,000 a year for salary.
He has 830,790 shares of stock, most of which are options shares he obtained as part of his salary.
His latest “sale” was for tax purposes. He sold 110,351 shares @ $2.73 to cover the taxes on his option shares that vested. The tax liability was $301,258.
To expect a man who’s gross salary is $525,000 to pony up $301,000 in taxes is something that no financial advisor to advise. Thus the sale of enough shares to cover the tax.
Frear has options for nearly 1.5 million shares of stock. How much more stock makes sense for someone in his position with his salary?
I knew dozens upon dozens of paper millionaires durring the dot-com boom. Their wealth was all tied up in the company, and when the bubble burst, they had nothing.
I am sorry, but to expect Mr. Frear to be buying more shares when he already has well over a million in options shares would simply be something that no financial advisor would ever guide someone to do. Want to test it out? Call your financial advisor and run the situation by them.
Tyler,
Thanks for your reply. I respect your opinion which is why I tune in every week.
I have no problem with Frear selling shares to cover tax liabilities. Let me try to resolve between options, grants, and taxes and see where I mess up.
David has received grants factored to a significantly higher strike price than where the stock sits today. He would have to pay taxes on those grants treated as income. Fair enough, use stock to cover it.
You call them options which would be treated differently such that he would not excercise them unless the SP crosses his option price (has this been possible since 2005 when the stock started to tank?).
So which scenario are we talking here? If it’s options then I believe he has no excuse not to pick up new shares at the reduced price over what would seemingly appear to be worthless unexcercised options right now.
If he has grants, then by my calculations he has 851,879 remaining shares at a current stock price of 0.118 = $100,521 invested in Sirius. That is crap in my opionion. Karmazin is in it for a million right now (9M x 0.118). Also crap.
I am not clear what percentage of David’s salary was given as grants so that may possibly give ammo to your argument.
I just believe that if SiriusXM executives are commited to their company they should expose themselves to the outcome of their efforts the same way their shareholders have. They are the heads of this operation. If they don’t have the faith go work somewhere else or be a rank and file worker just pulling down an average wage living. I respect Rhyu for admitting he could not justify continuing to stay at Sirius in hopes of a potential promotion somewhere else. There are huge rewards and huge expectations made of these executives. To not see one single purchase since Mel’s August buy suggests nothing other than a belief this stock will either continue to tank or is headed for BK.
Watch that show Startup Junkies on MOJO? Talk about putting it all out there. These guys personally risk it all but know they can walk away loaded if they succeed. They are commited to success and back it up. Larger corporate execs lose this sizzle for some reason.
I am young and humble enough to get schooled if I am way off here. Thanks again Tyler. Go PATS/CELTS/ and now BRUINS wow!
Not all Shareholders approved this reverse split, i would never approve it, its all or nothing.