Reverse Split Issue Purely For Listing Requirements
At the conclusion of the conference call today regarding the third quarter, Sirius XM CEO Mel Karmazin made a crystal clear statement relating to the issue of a Reverse Split. Karmazin stated that the reverse split, if needed, is “to satisfy listing requirements of NASDAQ”.
Thus, should the company get the share price above $1.00 in a manner timely with the NASDAQ requirements, there will be no need to conduct a reverse split. Karmazin requested that shareholders support the measure in the proxy.
Additionally Karmazin noted that the additional authorized shares requested is to provide the company a cushion if needed. Mr. Karmazin has made it a point to avoid dilution as much as possible in the past. His statement at the end of the call seemed to indicate that the company is seeking a cushion, and he encouraged investors to support this measure as well.
Hey Vapor.
First I thought about the .25 at open. Somehow in 30 seconds they show a trade at .23.
So I’m disallowing that number and continue to maintain that you were, and are still correct until which time the bid/ask both drop below .25.
IMHO.
Kinda like I’m working on the debt. Making my own rules. lol.
Don’t know if anyone saw the S&P maintains it’s buy rating on Sirius today.
However, if nothing else. They are truly the only rating agency that I know of, that has continued to stick behind their ratings and behind shareholders.
Has it helped . Not yet. But I still compliment them on their ability to measure the company without bias.
I actually think Mel is saying in that picture.
“I did not have sexual relations with that girl”.
One good thing about Mel though.
He always provides good lubricant when he’s doing ya!
Get the debt done Mel!
And get it done to benefit the shareholders.
TIA!
Well I invested in the company to begin with, so I’ve got to trust them. This isn’t politics, man. Companies want to make money and take care of their shareholders. Yeah, there have been some corrupt ones out there, but Mel has a good reputation and I’m just not buying that he’s purposely trying to screw us. It’s ridiculous. And I think his statements are a little more valid than a bunch of armchair CEOs on this board.
Regardless, I’ve got no choice but to believe them. Bitching and moaning, which I’ve done plenty of, hasn’t really gotten me anywhere.
Of course I’d rather have my 15,000 shares at the price now, than 1/50 at whatever price it ends up being.
But the deal is, I would rather have a reverse stock split and more shares than bankruptcy. How about you?
If the SP is not over a dollar by the middle of next year AND they weren’t able to re-finance the debt, what are the alternatives?
Management knows that’s a slight possibility, and they’re not willing to go all-in and risk everything. Contigency planning, pal.
But only time will tell, won’t it.
Brad.
I want Mel and the B.O.D. to look bankrupcy in the eye, vs. giving them any other alternative.
For me their is only one choice. Make the right choices to get this companies share price up.
Many of those options posted here daily. Or nothing else.
I WANT THEIR JOBS ON THE LINE. NOT MY INVESTMENT!!!!!!!!!!!
I have never accused Mel of trying to screw us. I actually think Mel has probably been trying to do his job but I feel he got in way over his head and that in turn has hurt us all. It’s my opinion that had we not done the merger everything would have been fine. He is the one however that made some bad decisions that brought us to where we are today.
That being said, I also don’t think we will BK. That’s my opinion. But I do feel that as long as we continue to allow management to make bad decisions, and the RS and dilution is a bad decision, we will continue to dig a bigger and bigger hole until we may have to BK.
We need to stop the bleeding by applying a tourniquet. We might lose an arm but at least we won’t bleed to death.
>>>GetItStraight Says:
Would you rather own 10,000 shares at .25/share or 1,000 shares at .25/share?
Sorry, but I disagree with you quite a bit. It’s a bit early to tell, because they’re making more adjustments to the balance sheet — but I’ve noted a couple more changes via the info they have released — that is showing that the adjusted tangible book value (in case of bankruptcy) has now moved up into the mid $0.40 range.
A 1 for 10 split cutting the price down to $0.25 again? Do you really see the market cap falling from the current $818 million down to $81 million? Sorry, barring bankruptcy — I couldn’t disagree with you more.
Can you imagine the outrage if Mel decided to not go through the merger after 18 months?
He sacrificed short-term SP for long-term growth potential. Which sucked for us, but five years down the road I think it will prove to be the right decision.
I don’t see the company bleeding right now given the operating results. It’s the debt and delisting that’s the problem. And not having a back up plan for the debt and delisting is like saying you’d be lucky to just lose your arm, if you don’t refinance and go above $1/share, we’re just gonna put a bullet in your head.
homer – in normal markets I would agree with you however we’ve seen what has happened and is currently happening to some of the biggest names in this country currently. Market cap means nothing. Besides, you know as well as I that the bonds get paid first. We’re last in line. Do you realize that we will probably see another 100+ banks fail within the next 12 months.
I don’t want to sound like an extremist but it is my opinion that the DJIA will go down to around 5,000 within the next 12 months.
Do you understand what the implications are on people’s spending habits? Do you think that Sirius is a must-have item? The most recent numbers on new subscribers and cancellations isn’t a joke.
BTW – my comparison of 10,000 at .25 to 1,000 at .25 was a little extreme but my point is that if the RS will cause you to lose any money at all is it really worth it?
brad – I know I’m speaking of a “hindsight is always 20/20″ perspective and I’m not blaming Mel per se for the merger itself but rather all of the other things that so negatively affected the stock price. For example, and it’s been stated many times before by others, the lack of financing for the deal, etc.
I think this company is awesome. I listen to my Sirius every day but I’m also a stock owner who has seen his investment get wacked.
I’m not comfortable paying someone millions of dollars to lose other people’s money.
I hear ya, GetItStraight. I’ve lost a shitload too. But I just don’t know what any other CEO could have done differently.
These are hard times, and, other than the debt, Mel and company is performing really well. And hopefully we’ll know about the debt too.
I sure as hell want to point my finger at someone for the loss of my money, but I think I’m going to have to find a mirror…since I invested in a super-speculative company.
A vote against the terms on a proxy, says I want all or nothing. A vote for says, I want all, but not nothing. And if it looks like nothing is possible, I still want some.
brad – a stock for the most part is normally traded at what would seem to be it’s future fair value, agreed? So why would diluting and RS’ing add value to the stock? It wouldn’t. All that would do is temorarily give the stock a higher price but in fact would actually lower the value of the stock itself.
Financing will be based upon the credit worthiness of the company. Not the price of the stock.
Is it your assumption that having the stock valued above $1 will all of a sudden make the company seem better?
brad – I respect your opinion and you should do what is best for you. I have never tried to convince someone of doing something that might not be in their best interest.
I’m just wanting to provide my side of things so people can make the best decision possible for themselves based upon any and all information that might be out there.
I’ve been down this road a few times before and only hold myself responsible for my loss. I’m a big boy. I’ve won some and lost some. I will however, continue to do everything in my power to not lose another one.
Tyler, apparently my comments zinged right over YOUR tiny head so let me give you a clarification that even an amatuer writer like yourself can comprehend. The analysts were busy yesterday, trying to digest what was in the late PR release. I believe it was done to purposely catch them off guard and preoccupy them. They are not accustomed to this kind of nonsense. Generally the PR is also issued with plenty of time for the analysts to go over it and write up their questions.
Here’s another scenario that people like Tyler don’t understand. When analysts call in they may be asked by the person working the switchboard, what questions they are going to ask. The first person to call in may not even get to speak first or even get to speak at all, especially if they write anything but positive articles about the company and its stock performance, which could also be the reason why the hardcore questions weren’t asked. All the public companies play these games when having conference calls and as you witnessed yesterday, Mel is a master of deception and laying down smoke screens.
Maybe a better question would be to ask Mel why everything he said about the merger being good for shareholders has turned out to be crap.
$1 per share doesn’t suddenly make the company any better, but it does meet the NASDAQ listing requirement, which is fairly important.
One last thing to be clear: A reverse split is the absolute last thing I want. I think it’s the absolute last thing Mel wants as well. But I’ll vote to give him the power to do it if all else fails.
Now, if he secures financing and the SP goes over $1 on its own, and he still does the reverse split, then I’ll happily burn Mel in effigy in the streets with you.
Joe…
You are a frustrated individual. We can all see that. You want to attack me for a “lack of expertise”, yet you go on and on about things that you know nothing about. Can you see the irony on your actions and behavior?
Lets get this crystal clear:
1. The original question was why analysts did not ask about the authorized share and reverse split proxy. That information has been in hand for quite some time now. With the lack of a PR, do you think these analysts were sitting on theirrespective asses? Come now.
You say that I do not understand that analysts are screened???? Kindly refer to this link as it disproves your theory YET AGAIN.
http://siriusbuzz.com/forum/sh.....php?t=1021
Perhaps you can tell us exactly how an increase in sharecount after a reverse split is the same as one before a reverse split. You did see the responses I hope.
Perhaps you can tell us that you have seen my portfolio with respect to SIRI and XM and state as a matter of fact that I have “lost money”
Perhaps you can ellaborate on my education again (which you know nothing about yet speak as if you do).
Perhaps you can speak to how you thought I would censor you, but instead gave you your forum to speak your mind. Why did I do that? Because I believe that the opinions of participants on this site bring value even if they are critical of me and my opinion. Others who read can judge the quality of your thoughts for themselves.
You see, there are people in this world who would rather blame everyone else, and take every opportunity to attempt to belittle anyone else rather than address their own shortcomings. What these people fail to understand is that everyone else sees right through them.
I would suggest that you try to concentrate on what YOU don’t understand rather than trying to GUESS at what everyone else understands. I would suggest that you look at your own education rather than trying to GUESS at mine. I would suggest that you learn ranges of your own understanding rather than GUESS at mine. I would suggest that you understand your own finances rather than GUESS at mine.
You have shown that you are a frustrated individual who will simply continue the attacks. What exactly does that accomplish? What value do you add to the conversation?
Let me make this simple…..If you do not like the site, don’t come to it.
For all others who come here for value, please accept my apologies for adressing Joe the bagholder in this thread. I think we are now at a point where things are pretty clear. There is nothing new that can come from continuing the conversation furthr.
brad – I’m not trying to be sarcastic so don’t take it that way but please enlighten me as to the advantages of having a NASDAQ listing in today’s environment with all of the other platforms and/or exchanges available?