As readers are well aware, NASDAQ de-listing notices have recently been forwarded to companies that are not in compliance with the $1 minimum bid requirement for continued listing on the exchange. On August 3rd, the minimum bid rule, which had been suspended since 2008, went back into effect.

There are three possible scenarios which can play out: 1) the stock rises above $1 by March 15, 2010 for ten consecutive trading days, and the company does nothing; 2) the SEC / NASDAQ changes the listing requirements to enable companies like Sirius XM, with their substantial equity value, to remain listed despite being below $1; or 3) the company executes a reverse split in order to bring the nominal share price above $1.

Simply stated, Sirius XM needs the equity price above $1.00 to remain listed unless regulators grant a waiver. Last year, shareholders granted the company the authority to conduct a reverse split if the company believes it is in shareholders' best interests, and at this year's shareholder meeting that authority was extended to the company through mid-2010.

Mel Karmazin has clearly stated that he does not want to do a reverse split unless compelled to do so, but the reality is that the time clock is now ticking and regulators may not grant an exception, so it is an issue that investors and the company should begin considering. Today, I would like to encourage discussion about the mechanics of the reverse split to get a gauge of what level investors feel the company should consider and why.

I would like readers to consider various options and open up discussion as to why you have the opinion you do. I am well aware that there are many who may not want a reverse split at all, but I ask you to participate as well. The point of this discussion is to guage feedback about what ratio should be set assuming a reverse split does indeed happen more than whether or not there should be one. This will allow for discussion and dialogue, and it is a subject I will be covering in my Satellite Standard Weekly Report.

Many media companies trade in a range between $15 and $25. Should Sirius XM try to be in that trading range? Should they shoot for a lower number to keep an attractiveness to retail investors? Should they shoot for a price that is higher to build a cushion? These are more psychological questions than anything, and there is probably no exact right answer.

Think about the pricing that the equity should be at rather than the conversion. A reverse split is a reverse split, so the ratio matters little. The question is what "market" and price point would suit Sirius XM radio the best?

I would like to see as many people as possible weigh in on this in the comments section so that we can gauge an opinion to see where the sentiment of investors is at with regard to this subject.