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.
That’s a good question.
I don’t know for sure that it’s any better to be listed on the NASDAQ. But, in my opinion (which isn’t based on a lot of fact here), being a company not listed on an exchange can’t help your reputation and limits accessibility to buy and sell the stock. I would think it would prevent a lot of new retail and institutional investors from even considering it.
In a nutshell, it seems to come down to reputation and accessibility. Not being listed on the NASDAQ would damage both, and therefore us. I don’t know if I could even trade it in my Schwab account.
But I could be wrong. Anybody else have any thoughts on this?
GetItStraight–Can you tell me why is doesn’t matter if Sirius gets de-listed?
November 11th, 2008 at 4:20 pm socalrunningfool Says: 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.
Well said, SoCalRF … Maybe Standard & Poors is equipped with FLIR (forward-looking infrared radar) and can see through financial battlefield haze….
homer985:
First of all let me thank you for answering my question on share counts.
I understand that your verdict stops on May 7, 2008. But, that is not where we are at today.
Here, for what it’s worth, is my take on it.
1,263,116,089 shares on November 5, 2004 – Share Price: $3.92
3,200,000,000 shares on November 11, 2008 – Share Price: $0.25
2 billion more shares
A share price down 95%
Plus all the added debt
Possible de listing
A proxy vote asking for an authorization of an additional 3,500,000,000 shares and an authorization for a reverse split
I also feel that he should have been in talks about financing the merger during the almost 18 months that it took to gain approval. Instead, I feel that he sold shareholders down the river as proven by the current share price when he struck an “ugly” debt deal to close the merger.
These results are not what I would call shareholder friendly.
What would stop Mel & Co from doing the same type of UGLY financing again?
I will vote no on both questions.
I can not stress enough how high the level of suckiness in the “comments” section has been as of late. There are over 100 comments on this article and MAYBE 10% pertain to the actual article. The crap posted in this area really is a plague on what used to be a great site with great comments.
PLEASE consider banning the people who consistently rant and rave about their situations and positions in the stock. It ads ZERO value to your site.
Please boot the cancer known as Joe the Bagholder. If I want to read 5th grade comments I’ll go to Yahoo
How many insiders or employees are buying shares at these bargin prices, answer that and you know what Mel is doing.
PM- FLIR. That is genius. Nice.
Tyler. Your words regarding inwardly looking vs. critiquing others, are very well put. Thanks for the reminder.
GS. Last I checked. Zero insider buys in past month. So your saying……….
Oh Tyler who likes everything sweet and nice, let me say this once again and please try to pay attention this time.
When analysts call in they are asked who they are and what firm they are with. The also may be asked by the person working the switchboard, what questions they are going to ask. The first person, second person or any person to call in may not even get to speak in the order their calls are received, or even get to speak at all, especially if they written anything but positive articles about the company and its stock performance, which could also be the reason why the hardcore questions weren’t asked. You ASSUME that no analyst was smart enough to ask the tough questions, when in fact, it is possible that the analyst(s) who wanted to ask those questions were told not to. All the public companies play these games when having conference calls. No public company is under any obligation whether by law or as a matter of courtesy, to answer analysts questions. In case you haven’t noticed, Mel is doing whatever he can to dodge the heat from the bad merger and awful financing he arranged afterwards, not beforehand when he should have arranged more favorable financing many, many months before the merger was approved and closed.
Rather than waste your time making dumb replies to me, how about getting the shareholders fired up so that they not only attend the shareholders meeting next month, but DEMAND that Mel Karmazin and the board of directors resign, effective immediately. If not, then how about you tell everyone why a CEO and BOD who have none NOTHING to protect shareholder value, should remain with the company and continue to receive HUGE PERKS for running the company you are in love with into the ground. Pretty please, Tyler, with sugar on top.
Hey Friggin…
November 11th, 2008 at 12:40 pm frigginregan Says:
I hear ya Vapor. What can we do but wait? At least its getting to the moment of truth. I assume if the RS passes, they won’t actually DO IT…because as Mel said…it’s for “delisting purposes” ONLY….which we won’t have to REALLY worry about until the end of next summer.
The RS is for “Delisting Purposes Only”…
Well you see now boys we were going to the pink sheets because we did not service the Feb note….Could not let that happen no siree
So we RS you boys at 50 to 1, then printed some more worthless shares and people bought them and now we have the money for the Feb note…but then those bastard naked shorters took this stock back down to a penny.. not my fault boys, really not my fault
Tell you what I am gonna do just to help you boys out..Me and a few of my friends are going to give you boys two cents a share for your stock and take this company off the Nasdax and away from those naked shorter bastards that ruin this company…at least you boys won’t be completely broke..
You don’t have to thank me now for this big favor I am doing for you boys…no siree
imho
vaporgold
Joe….
I already know how conference calls work. That was clear prior to you stating that I did not. You don’t seem to be willing to accept what is in front of you.
By the way…..rarely are all of the questions known prior. The company has an idea of what will be asked based on the conversations with each analyst. However, the people who get to ask a question are known.
You are all over over the map. On one hand you go on and on about how stupid I am, then you have the GALL to ASK ME to be the one who should get shareholders “fired up”. If that is so important to you, the YOU should get the gumption to do something YOURSELF.
You refuse to address issues, and simply rant, rave, and make statements that are all over the place.
Why not turn off the computer for a while, or step back, think, and add value to the conversation. You want the BOD gone….why. What specifically are you charging? Who do you want in their place. Who would you suggest as a CEO. Certainly you are not marching down a path of firing everyone without considering what will transpire after it happens.
You are critivcal of Mel and the BOD for the financing and say they have no plan, yet you are suggesting firing everyone without a proposed solution…..How smart is that?
Enough with the rants and raves…..bring some meat and potatoes
If Mel and Company really cared about the price and us 750,000+ retail shareholders, he would accept our offer to pay off 300-500 million of the debt, so we could save our company and our investments. If Sirius (Mel)notified its shareholders asking for a $300-$500 dollar investment to be put in a holding fund approved by the SEC, 1/2 the debt could be paid off and that should get the stock price above 1 dollar.
>>i>J56D Says:
I understand that your verdict stops on May 7, 2008. But, that is not where we are at today.
J56D, here is the problem with your assessment… you’re now dumping the entire 2 billion share increase on Karmazin’s shoulders — however you are doing so without noting that that two billion shares bought their only competitor, who owned an equivolent amount of bandwidth that is now valued at $2 billion on their new Balance Sheet.
I point this out again… Sirius is no longer valuing the XM licenses at the previous $1.3 billion from August, they’re now showing it as $2 billion.
Had the increase in shares been the same (2 billion) with no change in assets or there been any acquisitions — then I’d say you have a legitimate argument. But since that share increase was almost 100% for the merger of the two and Sirius got a large amount of assets for it — I’m sorry, but I disagree with the suggestive assessment that Karmazin diluted the shareholders. There is no (or limited) factual basis to it.
——-
GS…
The stock price would be a lot higher then $1.00 overnight.
SiriusXM stockholders come to the rescue of their beloved SiriusXM.
I am all in any time I get that letter from SiriusXM where to send the money to which holding /escrow account.
Many people have brought that up, with no reply from SiriusXM to my knowledge.
I think most of the people here would do it in a heart beat. I know I would.
Make it $300.00 or$ 500.00 to $1000.00, count me in.
It is amazing what can be accomplished if we worked as a group, a little cost to everyone, but big returns in the next few years for everyone.
All Mel has to do is ask.
We are waiting Mel
Better then sending it to an attorney for the future Class action suit.
imho
vaporgold
>>>GetItStraight Says:
Market cap means nothing. Besides, you know as well as I that the bonds get paid first. We’re last in line.
Agreed. And when I estimate the asset/liability numbers through a Chapter 11 scenario, there is enough stockholder equity remaining for a payout of about $0.49/share, currently. This is subject to the adjustments that Sirius managment is making right now to Intangibles — so I will wait until the 10-Q comes out.
I’ll add, that the $0.49 that I estimate removes all intangibles from the equation — however in a Chapter 11 scenario, Intangibles are given some value… so the price I estimate could still go up more.
—–
vaporgold, I feel the same. Paul Blaylock agreed it would be nice and would really help, but would take a few months to get a holding company approved by the SEC.
SiriusHope, are you indicating that some of these companies like amperis are paying off the debt or just making an investment because they know something is going to pop the price ?
GS…
Let them get the holding company approved in a few months, we still have the May and Dec notes to contend with.
imho
vaporgold
homer985
Ok, I will concede your point on the share dilution but you still have………
A share price down 95%
Added debt including the “ugly” debt deal which abetted the shorting
Possible de listing
The upcoming proxy vote
I still don’t feel that he was prepared for the merger to be approved.
These results even without the share dilution are not shareholder friendly.
And I still ask what would stop Mel & Co from doing the same type of UGLY financing again?
GS seems they are investing for the up spike that is eventual.
J56D.
Your 11:47 pm post is exactly it!
enough said.
I’ve said before I’m in for the debt reduction.
Can be done online. We simply place our dollars electronically and there it is