Sirius XM Flirting With $1.00
Sirius XM Radio is only two market closes above $1.00 away from gaining NASDAQ compliance to remain listed on the exchange. After a tough Friday, the company closed above the one dollar threshold to bring the above $1.00 streak to 8 consecutive closes. For most people, Friday was the hurdle that would prove most difficult, but instead, it looks like today is the toughest day yet.
The company has been trading below $1.00 for most of the day. Volume is high, and shares seem to be trading at a record pace. With the company’s reliance on car sales, the weak numbers anticipated for new car sales in February are not helping matters.
Sirius XM has until March 15th to trade above $1.00 for ten consecutive days. The rule is based on the bid at close, and the company has successfully remained above the target price for 8 days. If the company were to close above the $1.00 level today and tomorrow, they will have gained compliance and averted the cloud of a reverse stock split.
Mel Karmazin dealt with the issue in a conference call last week, where he stated that the company would only conduct a reverse split if forced, and that they would file for a six month extension if they did not regain compliance by March 15th.
After the company closed Friday, my own confidence that they would remain above 41.00 was bolstered. Today, the trading action seems to be a battle of those that want to see it gain compliance vs. those that want the reverse split cloud to remain in place. With only a few hours left in the trading day, it will be interesting to see how this plays out.
The company actually has one more ten day window available before March 15th, but that would require being over $1.00 at the close of business tomorrow, March 2, 2010. Shareholders have approved a reverse split for compliance. That approval expires in June.
The move that brought Sirius XM above $1.00 was a bold move on what appeared to be little news. It was almost as if the equity was being driven to regain compliance. After reporting good metrics, and offering up what appears to be profitable guidance, the $1.00 mark appears to be in danger. Who will win this test of wills? We will know within the next 48 hours.
Position – Long Sirius XM
Essentially a moot point . . . the extension will be granted anyway and Siri will easily trade over $1.00 organically, well before the new expiration
I am not trying to scream “FIRE” here, but it is far from a moot point.
While I agree that an extension will be granted, being in a non-compliant state is a “black cloud”….even with an extension.
If the company does have to file for an extension, they will also need to take a new shareholder vote. That will mean more attention to the issue of non-compliance.
There are many who felt that SIRI should trade over $1.00 organically for quite some time, yet it has not happened until recently.
It is far better to not have that “black cloud”. Sirius can “shine” much better if the worry of compliance and reverse splits are not on the horizon.
Black cloud??
Spencer. It will come back to basic fundmentals as they all do. If Mel grows EBITDA at 20% per year it will trade at 20 times EBITDA.
Its as simple as that.
Plus there is very little doubt now that they are going global.
… lobal.html
Forget the noise. That’s short term thinking. Do you actually believe Mel won’t grow EBITDA at 20%? Do you? Come on…….
oops bad link
I guess you believe in Santa Claus as well.
LOL!
Down 13% in one day and dropping in after-hours trading.
Wunderlich called this one perfectly.
Considering that one week ago SIRI hit a high of $1.18 per share and closed at $1.13 that day, this precipitous nose-dive proves SIRI will never get institutional acceptance and is doomed.
The death spiral has begun.
Death Spiral??? LOL
Black Cloud = Buying Opportunity
Sire it will. LOL!
Real-Time Quote 0.954 -0.066 -6.47%
as of 03:18 PM EST on 03/01/10
Dont worry it won’t close at a dollar. there is aleways something odd going on with this stock. it should have never gone to a dollar to begin with…that being said once it did why on March 1st does it drop. Stock is worth about 80cent..next year with some results it goes to $1.25….
This is BS, they are just raping people now. Great timing for the WunderDick’s downgrade to “Hold”. After 5 years, I should be used to this stock being manipulated.
YUP
Time to Get Serious on Sirius (SIRI) Stock Valuation?
March 1, 2010
By Paul Ausick, Contributing Editor, InvestorPlace
Sirius may not be down to $0.25/share yet, but that is the stock’s direction for 2010.
http://www.investorplace.com/e.....ation.html
Appears wondermut jammed the stock with their buy rating going back a few weeks ago and now pumped it back down to lock in their own proprietary trading calls for their clients who purchase their research, etc.
Be interesting to see the nonsense that comes with this, in regards to all the lame press articles that will be popping up to attract reader attention to their websites, etc.
While I don’t want the stock to trade down, I’ll look at it as a buying opportunity for the longer term…
Long SIRI
SMART
Sad to see that the ONLY one posting on the site today with the negative press that WE ALWAYS get is someone who has barely if at all celebrated the last week and a half of POSITIVITY………………………
Sad.
Extended Hours
0.869 -0.0205 -2.30%
as of 06:49 PM EST on 03/01/10
Death Spiral
Mierda……………………..
Stick Around , Mami……………….;)
I love buying up these discounted shares!!!
Tyler Savery’s photo (as above) resembles:
A.) Presidential Secret Service Guy in Tropical Location
B.) Undercover Cop Coordinating Broward County Drug Raid
C.) Don Johnson with a Happy Trigger Finger
D.) Dirk Diggler Ready to Direct Pool Scene at Rented House
That gave me a good laugh
“If the company does have to file for an extension, they will also need to take a new shareholder vote. That will mean more attention to the issue of non-compliance.”
Mel: Uh, John, Greg . . . could I have a moment please?
John: Yes Mel, what is it?
Mel: I have this big problem John
John: Yes Mel, go on . . . .
Mel: Tyler Savery is very worried about a new shareholder vote
John: Hmmmm, you mean about the R/S split Mel?
Mel: Yes, precisely John. This really sucks.
John: Now-now Mel, don’t worry about this; I’ll talk it over with Greg. I think I can convince him to vote our 40% interest in renewing the authority; Don’t worry Mel, we got you, Leon, Vanguard etc etc etc. We’ll get you the votes.
Mel: Oh bless you John, bless you. That damn Tyler Savery had me losing sleep over this and night-grinding my brand new choppers.
Roadkill…..
The shareholder vote will gain approval. There is little doubt about that. Shareholders are virtually at the mercy of the Liberty shares.
Yes Spence, on this we totally agree . . . in the aggregate, retail shareholders comprise little more than a badly fragmented minority ownership interest and have virtually no say in the corporate governance of Sirius XM.
Where you at BaBa, .93 cents REAL TIME!
Real-Time Quote 0.8949 0.0054 0.61%
as of 03:59 PM EST on 03/02/10
Let’s see Mel Karmazin salvage himself now.
I have no doubt he will push for a buyout by John Malone and walk away with an unearned golden parachute on the back of shareholders.
BaBaBooey,
Please identify yourself:
a) Disgruntled ex-Sirius/XM employee
b) Disgruntled SIRI shareholder
c) Loser working at a crap-FM station
d) The Troll
e) All of the above
I’m saying E)All of the above….
I’ll cop to d) LOL!
I agree……………….E)
why do you ban my comments and let boo boo continue posting this doom and gloom dribble?
Your comments are not being banned. Perhaps you have something in them that sets of the spam/profanity filters. No one is banning comments here.
Sirius is far from done. The only remotely negative thing that’s happened (and it’s minor) in the past 9 months is that they missed the dollar mark after 8 days. There’s still time for them to meet compliance. And we already know Mel is prepared to file for an extention on any possible delisting. Sirius will meet compliance and the reverse split will not happen. There’s no way that’s going to happen when the company continues to make forward financial progress daily…..
There is NOT time for Sirius-XM to gain compliance.
They needed to close above $1.00 today and every day through the 15th.
There is no guarantee that Sirius-XM will receive an extension. It’s a 50-50 shot at BEST.
F-ing Aye Bro’, f-ing aye !!
Zzzzzzzzzzzzzzzzzzzzzzzz
back to $.96 today already. the scum at wunderlich should be looked at….