It seems that whenever something good starts to happen for Sirius XM Radio, that Goldman Sach's analyst Mark Wienkes is there to cast doubt on the situation, and in essence, hobble the equity. After trading well yesterday, Wienkes took yet another shot at Sirius XM, that at this point reminds of a classic movie scene from Misery.
For those that for some reason may not have seen the movie, the premise is that author Paul Sheldon (played by James Caan), is "rescued" from an accident by Annie who turns out to be a crazed fan (played by Kathy Bates). After bringing Sheldon back to health, Annie will not let him go, and stops at nothing to limit the progress of his health. Every time Sheldon appears to be gaining strength, Annie does something to break his will. At one point she even "hobbles" Sheldon by breaking his ankles in a manner that can only be described as gruesome. The video is not for the feint of heart, but then again, neither is the current stock price of Sirius XM Radio.
In his latest report, Wienkes moved his price target down to .25 cents, and lowered subscriber as well as revenue estimates for the company. Wienkes still sees the debt refinancing as a major issue.
Is Wienkes hobbling Sirius XM? For many it certainly seems to be the case. The timing of reports issued by the analyst has more than a few people wondering if there is some sort of agenda. Each investor will have to arrive at their own conclusion, but there is little doubt that the latest report issued by Wienkes has had an impact on the stock price.