Sirius XM Announces Annual Meeting
Having been travelling all day, I was a bit surprised to see that Sirius XM Radio announced their annual meeting today. The meeting is scheduled for May 27th. From one perspective, I view this as a positive, because the issues that will be voted on in this meeting will have a chance to be addressed at the Q1 conference call that I anticipate will be announced in the first week of May.
Items of note from today’s SEC filings are the voting of new Board members, addition of more authorized shares, and an extension of the reverse split from 12-31-09 to 6-30-10. When considering these issues, investors need to exercise some patience and understand that at a minimum, these issues will get some attention in the next couple of weeks from analysts.
NEW BOARD MEMBERS
At this point, Liberty is getting 3 out of the 6 possible seats that could be allotted to them. Of course, the matter is up for a vote, but the new board is virtually a foregone conclusion.
INCREASE AUTHORIZED SHARES FROM 8 BILLION TO 9 BILLION
While never popular with investors, dilution does have strategic impacts on the company. Yes, we all hate to see dilution happen, but with it sometimes can be better than the alternative. This measure will provide some breathing room for the company on debt issues that still exist. The Liberty investment in Sirius XM gave the company more time, but in the end, the debt still exists. The company needs to be able to have enough shares to garner some wiggle room. Should credit markets be slow to recover, there may be little choice. In my opinion it is better to have the authorized shares and not use them than to be caught in a situation where the company seeks emergency meetings to address such issues. Of course, the opinions on whether management can be trusted with these additional authorized shares is bound to come up, but in the end, the management team has been pretty stingy when it comes to dilution. As investors you simply need to ask yourselves how much you trust management. That being said, no matter what side of this issue you are on, you should be prepared for this measure to pass, as it is my opinion that it will.
REVERSE SPLIT
This is another subject that investors are sensitive to. It is also an issue that needs to be on the table if the company wants to maintain their NASDAQ listing. On the way down, the equity spent little time in the current trading range. From a technical standpoint, Sirius XM could conceivably get to acceptable trading levels that would erase the need to conduct a reverse split. That being said, there is some wild trading that is bound to happen, and there is no guarantee that the company will surpass the $1 trading target in time. Again, I expect the measure to pass. Whether you are for or against it, I would strongly urge investors to act as if the measure will pass.
It does not take a rocket scientist or equity analyst to see that the economy is far from perfect these days. Individuals and companies alike need to be proactive in planning for several contingencies. Thankfully we have the Q1 conference call where the company is likely to speak about, and analysts are likely to inquire about these items.
Position – Long Sirius XM Radio
Tyler,
As always thanks for the information.
Oh Boy!!!! Here we go again. The pps just starts to improve and now were back to further dilution and an impending reverse split. Looks like we’ll be back in the .20’s in no time!!!!Frustrating!!
every real investor in this company already knows these issues.
6/10 is a long long long way off- its gone from 6-63 cents in little time- mel bought a bunch around 1.25- if this stock labors less than a dollar by then without new news to drive it beyond -we should all be gone “long ” before or if we hold onto this issue after the r/s , we need to pass it to our grandchildren-dont think it will happen – its too long a time- this topic sure makes investors pay attention and generally is the only issue that makes this company even somewhat dramatic (since bk is not an option-) the ridiculous amt of shares outstanding though may prove me wrong
why increase to 9 billion?
All i know is They took what was a sure fire rally to .75 and flushed it down the toilet with talk of futher share dilution.
They just cant seem to let the common share holder of this stock win. I dont know why they wait for the worst times to announce these things. Wait until the rally is cooling or something. They have killed any short term chances of this stock to move any direction but DOWN.
Please, can somebody tell me what is going on. As you all know, Monday this stock was at .63 for a brief moment. Today, it hit hit .39, but is now around .44
Is there some news that I don’t know about? I have averaged down from $3.50 to .65, it has been a long time since I was that close to breakeven.
The stock traded 193 mil.shares on Mon. It gets run up to .65 Maybe a few chosen people (shorts)knew that the filing was coming out at the end of the day and jumped on again. The stock market is not for the working man.
Profit taking — to go along with the hedgers continuing to play the swings up and down. Remember, the average retail investor CANNOT short Sirius. Because most brokerages require a stock price of $4 (and higher) for new short positions — and/or significant amounts of equity in your margin account to do it. Therefore, the majority of the shorts are likely hedges made against long debt positions. These guys can do it forever – and not be burned.
As for the Proxy… there’s nothing new of significance in it to cause this stock drop. The reverse split plan is old news – extending it from 12/31/09 to 06/30/10 is meaningless. The election of the new BOD (including the 3 Liberty seats) is meaningless too. As for the share authorization — this stock is already diluted to hell.
Increasing the limit from 8BB to 9BB should not be a shock, is no guarantee of dilution (it’s an authorization, not an issuance) and will not have that much of impact — there is already so much equity out there, the increase is just not going to have that much of an effect. Did you all really believe that the full dilution would remain at 6.5BB shares? I have been fully expecting – and continue to expect – Sirius to continue to swap more debt for equity over the next 12-18 months. While doing so would be dilutive to the Market Cap – it will have no effect on the Enterprise Value.
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Furthermore, the May 27th date is old news — that date was published in the 10-K released last month. Several of us pointed it out.
What is another Billion Shares among crooks. When will the common shareholders realize that they are being shafted over and over again. I wondered how they would get rid of Ergen and the four hundred million in Dec. debt he picked up at .32 cents on the dollar.
I can tell you something isnt right. The common shareholder is getting shafted over and over again. Im not going to pretend to understand it but this stock has a puppetmaster pulling all of the strings and the common shareholder is the puppet.
We are getting screwed without a kiss.
All I can say is read my comments posted on 17 April concerning the article “SiriusXM Should Benefit From Economic Turnaround” which was posted on 16 April.
They are depending on “core” subscribers to shore up this broken company. As one “core” subscriber & stockholder, I am totally disappointed with the dismemberment & mismanagement of what was once a great medium for music,entertainment & information.
I can not & will not support the present senior management in anything they do (as demonstrated by what they have alredy done which is to totally f**k up a great thing).
May 27th! It would be nice to get some timely financial numbers for once. It should not take 2 months to get 1st. qtr. financial statements.
What ever it takes to give this company some breathing room and turn a profit!
This in turn will return me a profit!
As a shareholder I want profit too.
That said, profit should NEVER compromise quality.
What you have now is a decline in quality and piss poor management who have programming “experts” who are stuck in the commercial radio mode and senior management who can’t be trusted.
How can some of you people endorse what’s going on??????????
Heard yesterday on “terra” radio (wonder why I’m listening to “terra” radio more these days? Humm…..)that Apple had sold 11 MILLION iPods in the last few months.
How many Innos or Stilettos were sold during same time,let alone that floopy cellular service that fades in and out and sounds like it came out of a tin can some of you “EXPERTS” tout?
Before the merger I would have NEVER been cynical about Sat Rad but seeing what Mel & his cohorts have done to Sat Rad has driven me to it.
Recondo72,
What was that line from the movie Field of Dreams – “Build it and they will come?” Well, as we are finding out….. tear it down, and they will stay away! It is so sad to see so much potential flushed down the toilet by incompetent management.
I don’t blame you for being cynical. There is never any good news, never any advertising, and NEVER a reason for people to get excited. Making satellite radio similar to terrestrial provides NO IMPETUS for people to subscribe, and provides EVERY IMPETUS to cancel.
I was listening to some blabermouth DJ on one of the channels yesterday, and I swear, I was ready to turn on FM. I never would have entertained the thought at one time, but the programming quality erodes day by day. This company needs a major overhaul, and it needs to happen soon.
Homer, what is the end game here with Mel? If he continues to dilute this stock to all hell, how does he, with roughly 8.5M shares, finally come out of this? From what I can see, he is working for the stock price in the end, no?
Well said “SteveO”
Last night I “podded” Zoltar’s “Subterranean” and downloaded several programs. Since SiriusXM substituted that piss poor channel “Area” for “The System” I now download. Two years ago downloading was something I NEVER did. There was no need to. I know that “Area” has Zoltar on at 2300 hrs on Thursdays (boy now THATS SOMETHING!!! – dosen’t even count as tossing a damn bone).
Thanks for pushing me to other sources for my music Mel!!!
You and your piss poor group of programmers are doing a jam up job!!!
And some of you posters keep drinking the Kool-Aid. Why on earth why???