morning all....
Looks like Sirius is picking up steam....
Stock price
0.1425 0.0025 1.79%
as of 04:00 PM EST on 02/04/2009 in USD (NASDAQ Delay: 15 mins.)
Extended Hours
0.15 0.0075 5.26%
as of 07:23 AM EST on 02/05/09
Printable View
morning all....
Looks like Sirius is picking up steam....
Stock price
0.1425 0.0025 1.79%
as of 04:00 PM EST on 02/04/2009 in USD (NASDAQ Delay: 15 mins.)
Extended Hours
0.15 0.0075 5.26%
as of 07:23 AM EST on 02/05/09
1st few trades on Etrade have pushed price to .15, so far so good.
Have you guys forgot something SIRIXM has enough COH to take out the remaining Feb. debt. not to mention there is the FCF from the 4th quarter and about 3 BILLION shares to dilute first. To be honest I am happy they are buying the debt and not shares that would worry me more at this point. I dont want one or two dollars when I have waited this long for this powerhouse spectrum to be let loose and show just what it is really capable of.
I agree they can take out Feb Debt with cash, but this is not what they want to do because it would leave them a bit low on $ to operate. I read that they still have access to a 250M line of credit without tripping covenants & they also should be able to get the May term loans reworked. The price increase in conjunction with the "Best of" has and should bring in a decent amount of cash upfront to help with the short-term debt. Echostar buying up some debt just helps the situation in my opinion. The WSJ author seems to want to bash and hope to push stock price lower - must be paid by the NAB.Quote:
Originally Posted by john
So far this a.m. it is not working as stock is bidding higher on decent pre-marke volume.
Pre-Market Trade Reporting
Pre-Market Charts | After Hours Charts Pre-Market
as of 8:27am 2/5/09
Last: $ .1598 Pre-Market
High: $ .1599
Pre-Market
Volume: 631,142
sxminvestor, I disagree when you say that would leave them cash straped 175 million from 360 million is 185 million. Now while that is less it should be enough with the FCF from the 4th quarter and lets not forget that Mel has said that they will most likely be FCF even for the year so that means while they may need some of the COH at different times in the end of the year it all will even out. leaving them the 185 million.
I think they wil be alright either way. The important thing right now is that we're now bidding .16 + - hope it holds gettiing closer to market opening. We could be seeing a major short-squeeze here.Quote:
Originally Posted by john
How about .25 in premarket? That is a good start!
with all the equity that SIRI already swapped for debt, they cant let this thing go BK now. some banks took this stock probably with some assurance that something was in the works. why would any bank take on such risk at this time without some idea that the equity would be worth something in the near future?
If Sirius XM can pay their debts when due, I would think they can not be forced into bankruptcy. So, since they have authorization to do a reverse split and to issue billions of new shares, doesn't this give them protection? If needed, can't they do a reverse split to get the share price higher, and then issue more shares to generate immediate money?
If all of the above is true, then I wonder if in fact this purchasing of debt is really an attempt to force Sirius XM into bankruptcy. Let's not forget that these are quite intelligent people.
Anyone have any thoughts on this?
Interesting article was just posted on Wall Street Journal online (it is cut and pasted below):
By MARTIN PEERS
Mel Karmazin undoubtedly hasn't forgotten the four tumultuous years he spent shacked up at Viacom with Sumner Redstone. So it's a good bet the CEO of Sirius XM Radio doesn't fancy the prospect of working for another strong-willed mogul: Charlie Ergen.
For that reason alone Mr. Karmazin is sure to spend the next 10 days searching high and low for $175 million he needs to pay off bonds held by Mr. Ergen's Echostar Corp. Otherwise he faces the prospect of Echostar trying to muscle its way to at least partial control of Sirius.
Don't bet against Mr. Karmazin. Beneath the roughly $3.3 billion of debt now dragging the satellite radio company back to earth lies a decent business with around 19 million subscribers. Cost cuts flowing from last summer's merger of Sirius and XM should take the company nearer to profitability - although the recession will hardly help.
Sirius could prove attractive to companies like Verizon or AT&T, both of which have national wireless footprints that might dovetail with a satellite-radio service. Liberty Media could also be sniffing around.
Still, Sirius needs serious money. Leaving aside this month's bond maturity, the company has $350 million in bank debt due in May and another $400 million in bonds due in December. Without the means to deal with those maturities, paying off this month's bonds only buys a little time.
One thing is sure. Having sunk $2.7 million into Sirius stock just last August, Mr. Karmazin will be keen to avoid a Sirius bankruptcy filing. If he has to yield to Mr. Ergen to avoid that, he likely will. Then Wall Street can settle in for a new clash on the corporate airwaves.
Thanks Steve - that appears to be positive for someone like myself (i.e. in deep).
Does anyone have the Wall Street Journal subscription to post this new article in full:
http://online.wsj.com/article/SB1233...oo_hs&ru=yahoo
Here you go... from WSJ.COM
By MATTHEW KARNITSCHNIG and JEFFREY MCCRACKEN
EchoStar Corp. and Sirius XM Radio Inc. have been engaged in talks for several weeks about EchoStar's interest in the troubled satellite-radio company, but have failed to come to a resolution, according to people familiar with the situation.
Sirius is trying to avoid a bankruptcy filing and the possibility that the EchoStar could take control of the company on a hostile basis. But that could prove difficult, given the difficulty Sirius has had raising the $175 million necessary to satisfy a debt payment to satellite-television provider EchoStar and other bondholders due February 17. Sirius didn't respond to a request for comment.
EchoStar Chairman and Chief Executive Charles Ergen, who is believed to be seeking control of Sirius, has been accumulating Sirius debt since late summer, the people said. EchoStar holds most of the satellite-radio operator's debt that expires in February and owns more than half of a $400 million tranche coming due in December. Both stakes were purchased from hedge funds. Sirius's total debt load is $3.25 billion.
Until Thursday the debt coming due in February traded around 80 cents on the dollar, and the debt coming due in December, around 36 cents on the dollar, according to Thomson Reuters. Thursday afternoon, after EchoStar's purchases were reported, the debt was trading around 90 cents and 40 cents, respectively. Sirius's shares rose two cents to 17 cents.
A spokesman for EchoStar declined to comment on the strategy behind acquiring the debt. It remained unclear what Mr. Ergen would do with Sirius if he acquires the company. Mr. Ergen also controls satellite-TV provider Dish Network Corp.
Seeking to take control of a company by acquiring its debt is an unorthodox strategy and could backfire. The debt EchoStar holds is junior to $600 million in bank loans Sirius has taken out. In the event of a bankruptcy filing by Sirius, the bonds held by EchoStar could be worthless. But Mr. Ergen could be counting on negotiating a settlement with the banks that would allow him to seize control.
Still, a bankruptcy filing could offer advantages to Mr. Ergen because it would allow Sirius to extract itself from costly contracts, including a $500 million, five-year agreement with radio personality Howard Stern. On his show Thursday, Mr. Stern said he didn't understand the financial details of EchoStar's moves, but added, "I just need to know who I'm working for on any given day
How much accuracy can we base on this article??
Ie. The amount of Feb debt they own and the Dec debt???
Should I be concerned that they will force BK??? I know what you guys have said ive read all of the posts today but all these negative articles are getting to me ahahha "exactly what they want!"
Tripping - thanks for the article.
Yahoo just posted another one if you can get that also. They are on a friggin roll.
Anyhow, at least there is finally some clarity to what has been going on. Does Sirius prove they have enough cash to pay down echostar debt now. This is unbelievable.
1) They have ~ 350M in cash
2) They apparently have access to another 250M revolving credit.
3) Sell some more shares for cash
4) How much cash will the Best of and price increase bring in if participants pay for 1 -3 years up front.
This is really getting interesting.
If Echostar wants them, then buy them for $1 share. I'll take that tomorrow in a blink.
Boy is Mel taking massive body shots. He is bobbing and weaving and getting kicked around, but still standing. Keep fighting Mel.
I will take $5 share, for a buy out!! :)Quote:
Originally Posted by sxminvestor
They would not pay that, but I'd I might retire to an island if that news came out.Quote:
Originally Posted by dread
Thanks for the dream :thumbsup:
Same here!! I would love to retire, the coming week will be interesting to say the least.Quote:
Originally Posted by sxminvestor
Good luck to everyone!!!
Ya that would be nice....:cool: