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  1. LIBOR/TED SPREAD is offline
    Joined: Dec 2008 Posts: 65
    12-25-2008, 12:02 PM #1

    $500m 1/1/2009 cash on hand????

    We can all agree this WILL be a FCF qtr but how much in FCF $25M,$50M,100M? We need $140M to enter 09 with half a billion on the books! Will the following get us there?

    Best of both is big, not the $4 but the ability to get paid now on new "contract" vs waiting for current contract to renew.

    LIFETIME SUB bad for future earnings as we will lose $ on these subs but GREAT for upfront cash!

    synergies, synergies, synergies!!

    HUGE decline in $$ spent on advertising (SIRIXM has finally been able to take foot off the pedal of growing revenue at all cost). WE HAVE THE REVENUE!!!

    We will obviously be hurt on sub # With slowdown in auto production hence goal is 19.1M subs. IMHO, this will benefit cashflow as less upfront cash we have to pay to put in factory install subs. (I WISH this was not the case as subs are important but like LIFETIME SUB this should help CASHFLOW)

    I would like to see $500M COH & 19.1M subs JAN 1, 2009!!!!

  2. Krypto1 is offline
    Junior Member
    Krypto1's Avatar
    Joined: Sep 2008 Location: Los Angeles Posts: 21
    12-25-2008, 02:03 PM #2

    FCF in Q4

    Libor, I think that 450 - 500m cash on hand by Jan 1 is potentially possible for the exact reasons you post. I bought best of sirius for my car and also bought the XMp3.... I bought multiple year deals on both units and paid upfront. I am a shareholder, so I was HAPPY to go long term. If enough subs & shareholders realize the math here, it will help the company quite a bit over the crucial next year. They are selling equity to retire converts in wierd amounts - kind of makes me think that the balance of Feb Debt will be handled with cash, hope so... Happy Holidays