Mel’s Karmazin’s Mad About Mad Money
Mel was able to set Jim straight on many things, such as next years converts which Jim tried to claim were due this year. Mel also took a shot at Goldman Sachs, citing potential wrongdoing on the part of Wienkes, regarding his work with hedge funds.
He explained in layman’s terms that promotions regarding the best of packages, namely Howard Stern on XM would be available this fall, and investors should look for a large marketing push to this effect. Regrettably, Mel outlined that some terminations have already taken place and that more would be forthcoming.
As for greater visibility, he stressed that SIRIUS XM would be providing an investors conference call following Labor Day, to outline the future plans and update guidance. Mel seems laser focused on profitability.
One of my favorite parts was getting Jim to concede that he liked no other company in the sector better. I was thinking about this yesterday while watching the Olympic men’s relay team steal the gold medal away from France. What if you could only buy and sell stocks every four years? Sirius, in my opinion would certainly have to be one of them.
The stock reacted nicely and is well off its technical bottom. Is this the beginning of the long awaited reversal? Time will tell, but for the moment it’s looking like it very well may be!
Position – Long SIRI
You posted your article 2 minutes before I posted mine Brandon. =)
My favorite quote was “and if we end up screwing people because they bet against us, that is their business.” – Mel Karmazin
They were definitely at each other’s throats, even though they tried to make it look friendly. And do you like how Cramer got on the defensive immediately? “It was the FCC, not me, but the FCC that cost you billions of dollars.” I only wish Mel would have thrown more stuff at Cramer… like a book or maybe a desk or something.
Nice 13 cent pop on today’s CNBC program. I saw on Friday where some posters sold 100,000 shares @ $1.31 or so. He/she left $14,000 on the table with that trade. It was a judgement call for sure, but it bring to attention how little it takes to move this stock one way or the other. As I have mentioned before, we are closer to a bottom than a top. With that kind of situation it’s best to sit tight and give it a chance to deliver some good news. Today was in that direction. More will come at the post Labor Day conference call.
I just wanted to get a commentary up there asap. Feel free to bump it. Diverse opinion is the best for everyone!
Your article had more to it than mine did =P
Paul in FL: I agree. There is just too much news in the near future to drive the price of this stock up rather than down. Other than the refinancing of debt, there should be very little downside to this stock for at least the next year and a half. I am broke right now, but it is STILL so tempting to buy more stock at these levels, even though my portfolio is already over weight with Sirius stock.
Mel: Wienkes in league with hedge funds “in my opinion.” Classic! 🙂
Mel handled himself great. Loved him pointing his finger at Mel and forcing him to admit that SIRI is the best-in-sector. That took balls of steel.
^^^ I mean I loved when he was pointing his finger at Cramer, repeatedly, as he drove his points home.
I must give credit where credit is due . . . Mel really has a great tan!
P.S. Mel, oversubscribed facility = too much shareholder value left on table.
Don’t worry too much about me Paul in Fl. I still hold half my position so got the bump and even sold a few more 1000 shares today with the bump. I am sure in the very near future I will be able to jump back in at a much lower price than todays close. Especially with a billion of debt to refi by next year. Mel did mention that he has had meetings and they agreed that addressing this issue sooner than later is best. So I would expect some news shortly regarding the refi of next years debt before to many “shorters” get back into the picture as Cramer said during the interview.
hey sirilong…
Let me ask you this. What are the terms of the outstanding debt? What makes you think that the terms won’t be better than the original?
What you are missing is that Sirius and xm signed those deals while in their infancy. Revenue was a question. With the merger, that question is no longer relevant, so terms will be much better…
get a clue…
crfceo – Do have a clue. Why i have been able to build up so many shares in Sirius: ie buying and selling. While I remain a long in SIRI stock, I am also an investor and understand the EXTREME risk associated with this stock. While I am against the way in which Cramer came out “selling” the stock the night before the merger, his argument as to why is still solid: is extreme debt and a company owned by those debt holders. Besides, in order to stay afloat Mel sacraficed shareholder value once. Who says he won’t take that route again. I would actually support it since I am a true long and believe that at times it is necessary to sacrafice all short term gain for the long term investment of the company. This in effect is what Mel did. Unfortuantely, many “longs” on these blogs are really shorts in sheep skin, waiting for that “pop” that is just NOT going to happen until about three years. So crfceo, I ask you, what is wrong with being a prudent investor and selling part of a position in order to gain a larger position in the long run?