As I understand it, the rule about a $1 pps has been suspended until something like April 17th. After that, how much time does Sirius XM have to get their stock up to at least $1 per share before it gets delisted?
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As I understand it, the rule about a $1 pps has been suspended until something like April 17th. After that, how much time does Sirius XM have to get their stock up to at least $1 per share before it gets delisted?
danzo..
I am going to paste a copy from NEWMAN, from another thread. It address your question. begin quote NEWMAN:
"Unfortunately, I think an RS is needed. BUT NOT YET.
With a float of 4 billion shares and a stock price in the teens, the circumstances lend themselves to manipulation.
They need to wait until they have a consistant string of good news. I could see an RS coming around September if the economy turns around, banks start lending, and people start buying cars. If all of these are not happening yet, a RS will be a disaster for current shareholders.
As far as for HAVING to do a RS, there will be another shareholder meeting this year. They could vote to extend the deadline for the RS. The earliest possible time when SIRI could get delisted currently is around March or May of 2010. (Cant remember exactly). Also, NASDAQ has mentioned that it is considering taking out the minimum $1 stock price requirment and instead sticking with a minimum market cap requirement. I believe the current market cap requirement is $50 million, meaning Sirius stock would have to drop to 0.014 cent per share before they hit that number.
I do not see a share buy back happening in the next 3 years, so that will not prevent a RS.
Just my opinion.
__________________
Disclaimer: LONG Sirius XM (its good to be back) "
End quote
You can find this and other usefull information in the "R/S" split threads. :)
So Sirius will have AT LEAST about 12 months to get the price up to a dollar a share, and by then Nasdaq might not even HAVE a minimum price per share?
I gotta love THAT news. I feel pretty good about my 16,420 shares at this point.
...I guess it's not necessarily NEWS in general, just news to me :)
Yes - I think the consensus is that we can take a deep breath on the R/S & any chance of delisting for a bit....
I think the group focus needs to be on monday pre-market/SP for now and doing the preliminary math prior to the 17 March Conference Call.......
Yes, even after a deadline passes, they have a couple of delays built into the process where they appeal it and the like. That is how it gets extended to 2010.Quote:
Originally Posted by Danzo
Currently, NASDAQ is rethinking all their limits, as are others in order to keep the markets together during this mess.
Danzo, I cannot remember what the exact date is, but since you posted April 17th (2009), I will use that. Keep in mind, the following scenario is based on if the Nasdaq turned their rules back on exactly how the had them before.Quote:
Originally Posted by Danzo
As of April 17th, their rules go back into effect. Sirius has 30 days to get their CLOSING stock price to over a dollar for even a single day.
If that does not happen, NASDAQ issues a delistment notice. This notice gives Sirius 180 days (6 months) to get their stock price back over $1 and keep it there for at least 5 consecutive trading days.
If Sirius cannot get this done, they can file for an appeal. With this appeal, they have to submit a plan on how they will get their stock price over $1. This plan has to include a provision for Reverse Split. Once the appeal is approved (which it is in nearly 99% of cases), Sirius is given an additional 180 days (6 months) to execute this plan and get their stock price over $1.
If after all of this, Sirius stock price is still below $1, then the NASDAQ board meets to discuss delistment. The board still has the power to decide not to delist the company citing any reason they choose, but most commonly it is "trading equity".
So take your April 17th date, add 30 days, then add 180 days and you arrive at the FIRST POSSIBLE chance of delistment on November 2009, but if their appeal is successful (which 99% are), this date is extended 6 months to May 2010. Then again, the board could decide not to delist them anyway.
How do you think brokers would appreciate NASDAQ delisting on of the most heavily traded stocks of all times? Probably not very well...
OldDruid: You have GOT to learn how to use the tags on this board...
[ quote ] and [ /quote ] (without the spaces).
Or, you can add the name of the person who said it:Quote:
I am quoting myself
[ quote=Newman ] [ /quote ] (again, without the spaces)
Next week we will learn how to post URLs.;)Quote:
Originally Posted by Newman
Quote:
Originally Posted by Newman
quote test preview 01Quote:
quote test 001
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quote test preview 02Quote:
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I think I got it!:clap:
Look out little URL's, your next.:smilewinkgrin:
:tysign:
[ url ] http://www.siriusbuzz.com [ /url ] <--- Short URLs that are self explanitory
http://www.siriusbuzz.com
[ url=http://www.siriusbuzz.com ] LINK [ /url ] <-- Use this one to name your link, or for long URLs.
LINK
learned something newQuote:
Originally Posted by romo
There are a lot of funds out there that will NOT touch any stock that is under $5. I believe it would benefit the stock to do a R/S. I have funds sitting in my 401K that are in reserve for the R/S.
Yeah, but we should wait a bit before doing the reverse split, IMO. The report that came out today said that the maximum split that Sirius is willing to do is 40/1. Sirius closed at about 15 cents a share today if I'm not mistaken, so even the maximum possible split would take the share price to a lackluster $6 a share by my calculations. I'd like Sirius to wait and see if the share price will go to 50-100 cents a share without a split, so that we can get the price up to $5 a share with a much less dramatic R/S. JMO.Quote:
Originally Posted by bababoooie