Sirius XM Opponents Put The “Jerk” In “Knee-jerk”
I had thought all day of writing this article. Perhaps it was that my attitude become worse as the day progressed, and other issues clouded my original idea, but I now have three issues to address. Now I’m angry!
I first need to make it clear that I also lost my favorite station (Buzzsaw) to the recent channel changes. I reserved my judgment however, before I considered writing about it. I have read many other articles, not surprisingly as negative as the NAB controlled media could muster. You may have noticed the term “elimination” in regards to Sirius XM’s channel offerings used ad infinitum in these knee-jerk articles written by writers in whom I have already expressed my opinion of. Of course that word leaves would-be subscribers with the belief that they are somehow getting less for their dollar than they would have previously.
Nothing could be further from the truth. The fact is that the channels were consolidated, not eliminated, and the benefits are many. Every channel I listened to today gave the Sirius and XM station that it was streamed to as its identifier. This single act alone leads to the inevitable conclusion that the service just got EASIER to understand. Not everyone is a Satellite Radio expert. Many people would just like to turn on the car and have the radio work. Would you want different FM stations on a Dodge Caravan than in a Honda Pilot?
Lets take a look at your average car buyer and just for arguments sake assume this individual purchased a Chevrolet Malibu. Three years later this same individual buys a Ford. The services were so different, that making the transition from one Satellite Radio provider to the other becomes the most confusing part of owning that new car. The new lineup will make it easier for anyone, buying any make or model car to easily find their favorite Sirius XM channels. There will be virtually no difference in the new car experience and Sirius XM is a better service today for that simple reason.
The next issue I want to address is the outrageous behavior of a certain group calling themselves “save sirius.” I admit I know very little about their agenda, but I do know they are headed by our old friend Michael Hartlieb. I have had several conversations with Michael and I have to say I am very disappointed again. Unfortunately, one issue stands out in mind from out most recent conversation. Michael commented to me with a slightly cynical laugh that he was told by persons at the FCC, that except for his actions relating to interoperable radios, the merger would have been approved back in January.
This means of course that had Michael not delayed the merger through actions that were found to be without merit, that the merger would have been approved before the economy went into recession. This means that the company would have had 2 extra quarters of combined revenues and decreased costs to contend with the debt issues now upon them. My opinion of the self titled group “Save Sirius” is on par with the actions of C3SR. Another self righteous, hypocritical group seeking nothing more than the demise of Satellite Radio. In other words, Michael, you need to remove the plank from your own eye, then you will see clearly to remove the speck from your brothers!
Lastly, I’d like to address the Auto bailout plan. In a word, my answer is NO! Remember when people used to build cars in America. People now build robots that build cars. Engines are made in Mexico. Electrical components in India. Here’s an idea I’d like to see the automakers try. LOWER YOUR PRICES! That’s why employee pricing worked so well when it was introduced. If Chevy sold a Malibu for 10,000 dollars, they would not be able to produce enough to meet the demand.
Everyone was excited to see hybrids and alternative fuel vehicles, only to walk away dismayed to learn that any fuel savings was added to the purchase price of the vehicle. No one wants to pay 30,000 dollars for a car with a 5 year life span. It makes no economic sense. Cars and Trucks are overpriced. They have become a severe liability to the average American. A brake job on a 2 year old car should not cost 2500.00 to repair. The car companies have been bleeding America dry for decades, it’s time they gave a little back.
Positions: Long SIRI
Mr Brandon,
I would like to applaud you on a article well written. Ive said not only on post on this board but others that the first thing auto makers should do is lower car pricing. This is a common sense approach to helping themselves yet they act like they cant do it. The auto industy has raised prices on cars year after year after year and finally its caught up to them. Its much like gas prices, The prices kept rasing until people finally had to do something else such as car pool, Walk, Ride a bike or bus. The demand therefore for gas dropped and therefore the supply was greater. Thus you have cheaper gas prices. Auto makers are going to have to come off of these cars if they want to survive. The bailout of these auto makers is a short term save that will sooner or later find them right back in the same spot they were in. I would have to say
for the most part the channel change has been fine but Ill say they have destroyed the 80s music channel and i did let them know it. ITS Terrible and needs to go back to its old form.
Lastly, I would like to say this Michael Hartlieb is spewing a bunch of conspiracy theory garbage that isnt going to get any of us anywhere. You can form your own opinions but as ive said its garbage to me.
I called your radio show last week and I was your second caller,I started off the converstation: “do you have change” and you said “do I have change?” followed by a change of topic? That is my point “change” were in a new world and things need to be revamped and that’s what Sirius xm is doing!!
Great show I would listen to it on Sirius.
Ps:I know jim Mclore if you want me to try to ask him?
Thanks for a great site I can’t get enough!!!!!!
Good job Brandon!!
First the big 3 bailout, they need to restructure, and chapter 11 is the only answer. No more handouts, could you imagine GM being run like FRE/FNM.
Second off, the channels merging was painful, I lost 4 of my top 10 channels but, after spending the weekend working in the garage and listening to the new format, I am happy with the change. Plus the cost cutting it adds how little it may be.
Finally is this clown Michael Hartlieb, if the economy was fine and credit markets did not freeze up, we would be at least a 4 dollar stock. This guy has his own selfish agenda and doesn’t seem to be aware of the macro economy. These are extreme times we are in, the option to dilute and R/S is an extreme measure. Hopefully we can get re/fi before this would happen, but if not, it is the ugly way of staying afloat and avoiding B/K.
7500 share / 2.00
voting on proxy this week.
See this is what I mean, See why I Hate MR “Save Sirius” Bull-Sh*t its more Mr. I took money from the NAB
Brandon, as usual your article is interesting. Interesting, however, has less valuable than substantive right now, with SIRI closing lower again. Just my opinion of course, but please put your powerful six-pound meat computer into drive and help us longs work through issues that we have direct, daily control over, such as the proxy vote and related matters.
Your concerns over what has become of a beloved channel, what Micheal Hartlieb did that delayed the merger, and what your take is on the auto industry bailout are three disjointed topics.
As investors and traders we must look foward, not backward, to prosper, minimize risk, avoid loss, and otherwise zig or zag to improve our positions.
I would not be commenting had your article’s topics been focused on the future. The lead part about one of your preferred channels could have instead covered aspects of the new or revised channel lineup that may attract new subscribers. The middle part about the Save Sirius group could have brought us up to date on whether the group’s Pide Piper has increased his flock, and what that may mean to SIRI value if the litigants win. And the final part of the article could just as well have brought us up to date on current aspects of moves to support or quash the auto industry bailout, and what that means to us.
By all means keep writing. Just stick to the knitting when you do so the material is worth reading.
Respectfully, PMO
Great article and as I stated in previos comments, “the new channel line-up is the synergies at work”
Vote No to a reverse split and no to additional shares. Make Sirius wait to split, till they absolutely have to, then maybe the neah will become a yay!
@PMO
“As investors and traders we must look foward”
You are assuming that the only people who visit this site are investors and traders…that is a bad assumption.
You went out of your way to post a big long response to Brandon so, I wanted to make sure I went out of my way to make sure you understand that this blog is not investors daily.
You are going to be really mad when I put a post together about Artie Lange later. Maybe I will try and crowbar something about the stock price in there
I would like to point out the negative media blitz that occurs on a daily basis regarding the channel changes. That is current news, as is my response.
The M. Hartleib story hit the wires today, so my response to this lunacy is again appropriately timed, as is the auto bailout fiasco.
These are all current events, not past events, that warrant a response today.
Good article. There is something seriously wrong with this group. I don’t think they are adding any value, and may in fact be damaging the company right now.
The negative news regarding the channel changes is legit and not by an “NAB controlled conspiracy”.
Look at this orbitcast article.
http://www.orbitcast.com/archi.....hover.html
People are legitimately mad, and Ryan has really took them to task for this. While I agree the channel changes are less upsetting than I thought, the fact that no advance notice was given when this was the prior status quo before is indicative. A LOT of subscribers are really angry about this, and I think you could see a lot more churn these next few quarters.
Or look at Rick Munarriz at the Motley Fool. He is an investor, but an informed investor. He was always bullish on Sirius XM, but eventually he realized that it wasn’t a good stock to get. I think he’s right–so many people actually get mad if anybody dares say any news about the stock prices.
If the media is critical of the merger, then that means that Sirius XM dropped the ball. I think you stockholders really forget it’s about the consumer first and stockholder second. If the consumers leave, you have no company.
The negative media blitz is because they screwed up, pure and simple. No cable company is stupid enough to do what Sirius XM did! And it’s only been 1 week.
I think MH has some legit complaints. They did promise the FCC interoperable radios, a la carte, etc. I think now that the merger is done they will work to weasel out of it as much as they can. A reverse split is sort of stupid.
November 17th, 2008 at 9:26 pm Charles: You falsely portray me as making an assumption. An assumption, Charles, is something considered true or real until otherwise proved false. I simply made a statement, not an assumption, as you did when you mistook a statement for one. Get over it, because you missed the point of my post, which is to ask Brandon to give us more insightful information about the stock. Personally I don’t hang on every word in an article; I just look for the nuggets. Were there some in Brandon’s piece? Sure. I’m just asking for more, especially with the clock winding down toward the deadline on the proxy vote. My vote may carry an Nth’s worth of weight but I don’t want to waste it.
Brandon, past info is history, current info is good. Some insightful, quantitatively backed, statistically valid forecasting would be better. Now can we move on?
Mel Karmazian has, thus far, done a poor job of creating stockholder value. At present, that is the issue. He need so develop trust with the stockholders which is severely lacking at this point. Many issues surround SIRI, and those need to be addressed not in secret but in a shareholder meeting of some sort. Stockholders have lost their shirts since his arrival. It is not only the economy, but the terrible timing of finalizing the merger.
Brandon, GREAT article! Ignore these nay-sayers. I agree with you on many point.
I would also like Michael Hartlieb to come here AND on the boards to brag about delaying the merger. If he thinks he did himself or any of the shareholders a favor by delaying the merger by 6 months, he is a psycho that should be put in an institution.
JRT states: think MH has some legit complaints. They did promise the FCC interoperable radios, a la carte, etc.
JRT – You are right. He does have some legit complaints. All of those complaints were heard by – AND RULED ON – by the FCC, the government agency that IMPOSED those rules and is responsible for ENFORCING those rules. THEY THEMSELVES said that the issue was not clearly written and that the merger which was approved BY THE SAME AGENCY made the issue mute.
And here is the kicker: Micheal is pissed off that the stock price is low, yet apparently by his own admission HE is the sole person responsible for pushing the merger on an extra 6 months further into a recessionary period, making financing very difficult to obtain, making Mel agree to “ugly” terms, which PUSHED THE STOCK PRICE DOWN. Interesting.
brandon,
you come back and omg I actually agree with you this time, at least as to the first two-thirds, as to the last part (auto) I really have no position yet.
yes, NAB stooges have been running amok with this garbage of the elimination, which you correctly point out is a consolidation. my car receiver updated all my presets to their new locations, even though several of my presets changed names or were merged. I am happy with the changes!
as to Hartleib, I could not agree with you more. you say that he stated to you: “Michael commented to me with a slightly cynical laugh that he was told by persons at the FCC, that except for his actions relating to interoperable radios, the merger would have been approved back in January.” Wow, if this is really true, can’t we sue Michael for the unnecessary delay!
Further, as to Michael’s list, he keeps sending me emails, although I NEVER signed up for his organization. I want to see a list of who he claims are members of his list, because I wonder how many realize that he claims they are members.
Brandon –
You hit on the haed with Hartlieb. I said it 2 months ago that this dooshbag added to the delays of the merger approval process and the delay cost me huge, just like it did for every other investor.
3 months could have made a world of difference and if his bullshit even delayed it 1 month or two, it cost us dearly.
Save Sirius – this is the biggest bullshit suit and anyone that is following this asshole should really rethink their position.
You hit it on the head Brandon.
“They did promise the FCC interoperable radios, a la carte, etc. I think now that the merger is done they will work to weasel out of it as much as they can.”
JRT – You are wrong. Ala Carte is already on the market. Interoperable should be right around the corner. I expect to see it BY the end of February. OF course, every radio is not ala carte and every radio is not interoperable. If they can update radios on the market and make them interoperable, it goes a long way.
JRT Says: No cable company is stupid enough to do what Sirius XM did!
Take a good look at Charter/comm, CHTR
Not only are customer service / employee relations horrific there, but this turd should have been wiped away a long time ago.
The liberal media is just an attack dog for the last refuge of free speech/choice.
Believe me they have been trying to destroy this company and XM, ever since they came to be.
Don’t believe everything you hear or read.
Rock solid adage, dread: “Don’t believe everything you hear or read.” Gotta do your homework and get accurate info that can be verified by multiple sources to make sense of a subject of interest….
@PMO
OK, you didn’t make an assumption, you made a bunch of statements which were presumptuous. You called Brandon out because the article wasn’t as useful as you would have liked it to be for “investors and traders.”