I was hoping to get a laugh out of someone!Quote:
Originally Posted by Limit5Bass
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I was hoping to get a laugh out of someone!Quote:
Originally Posted by Limit5Bass
Because no one is shooting roids :yesnod:Quote:
Originally Posted by siriusly_invested
so what exactly are holders of LMCA getting in the dividend on Friday?
no dividend just current LMCA is going to be split into new LMCA and STARZ. 1 share of old LMCA will be equal to 1 share of new LMCA plus 1 STARZ. Nothing gained, nothing lost. New LMCA will drop in value the price of STARZ
Quote:
Originally Posted by ralphy1
I think... LOL
not much of a dividend then, sounds like a break even
I doubt very much the when adding the two sets of shares together will compare equally with the old one share. Not to mention the damn confusion of the trading symbols for the next week or so. I'm sure some average Joe investor is going to mistakenly trade the wrong one after the split. I will not be trading until I can figure out the business plan of Starz as they just lost Disney and seem to be a pure Premium Cable Channel play; if I'm correct I'll sell. I'm cutting the cord when my contract is up this spring. I know many family members in their 40's that have already. I know of no person in their 20's that'll pay for television. They all just go over to a older relatives house or bar to watch the sports game on ESPN. Bar owners have to love this.
a dividend is always a break even. when SIRI paid you the 5 cent dividend the stock price was adjusted down by 5 cents - just like it is for every company that pays a dividend. Where do you think the money comes from to pay the dividend?
Revenue guidance was a little bit light, but then again the new GM deal hurts the revenue line to the tune of $50 million in Q4. Sirius XM used to realize about $200 million a year in revenue from GM.
The sub guidance is light as well. The GM deal does throw a wrinkle in here as well, but I was anticipating guidance of at least 1.6 million after the fiasco of the 1.3 million initial guidance the company started off 2012 with. Conservative guidance to beat by 20% is one thing. Beating conservative guidance by 50% is another.
From a valuation standpoint SIRI is in a sweet spot. It could reach up to $3.25, but they need to be hitting positives in the news. It looks like it was important for the company to offset the bad of sub guidance and revenue guidance with the positive of the 2 million. That is unfortunate.
I established a $3.85 price target with a possible run or spike to over $4.00. Stay tuned
LMCA splitting off Starz is very different than a dividend.
Now investors can price LMCA without Starz and they can price Starz as a standalone company.
For the life of me I'm trying to figure out the business model of a standalone premium channel on pay television. Pay television is slowing losing subscribers. Maybe their is allot more to Starz than just it's premium channels.