I hope it end at least at .15 + today, that was some drop. Why do I have this feeling Siri sold some shares or did a debt equity swap today ? Let's see if there is a filing tonight.
I hope it end at least at .15 + today, that was some drop. Why do I have this feeling Siri sold some shares or did a debt equity swap today ? Let's see if there is a filing tonight.
Prediction......
The shorts that shorted the morning spike up today will cover going into the close and lift up the share price - just like what happened yesterday...
I think SIRI closes pretty flat today...slightly up or slightly down.
Wow, what a tug-of-war SIRI is going through!
If I were a short, I would not want to go into this weekend with a position on. For this reason, I can see a pop in the last 5 minutes of trading today. In the meantime, the stock will continue to get bashed into the close.
I believe we will have an opportunity to buy on a downward gap sometime in the last 10 mins here - possibly in the high .11's to low .12's which I will gladly hold through next week awaiting another pop on news.
Good luck all!
People seem to assume that every time the stock goes down that it is being shorted.
I think it is just good old fashioned selling!
wow never expected it to fall this low, wtf.
as one of the most heavily traded stocks, I can assure you that I am not just assuming
well i just bought more, dont let me down mel.
NEW YORK, Feb 6 (Reuters) - EchoStar Corp (SATS.O) Chief Executive Charles Ergen's reported purchase of Sirius XM Radio Inc's (SIRI.O) debt is likely a strategic move to acquire assets, rather than an attempt to eventually force the company into bankruptcy, research firm CreditSights said on Friday.
On Thursday, bonds of Sirius XM rallied after the Wall Street Journal reported Ergen was purchasing the company's debt in the open market.
It is unclear which, if any, of Sirius' bonds Ergen has purchased and if Ergen is purchasing the debt via EchoStar or not.
"If Ergen could accumulate enough of a position to prevent Sirius XM from refinancing its 2009 maturities, he would be a formidable and unwelcome addition to the bondholders' table," said CreditSights analyst Jake Newman.
Sirius XM has a slew of debt maturing this year. About $175 million in 2.5 percent convertible notes is due on Feb. 15, according to KDP Investment Advisors.
Meanwhile, Sirius has $350 million of bank debt due in May and another $400 million in convertible notes due in December, said Newman.
The most recent report on the February 2009 convertible bonds shows that an asset management unit of Goldman Sachs had about $135 million, or 77 percent, of the issue and this could be what Ergen is after, said the analyst.
In a debt-to-equity swap, this would give Ergen an 18 percent stake in the company.
If Ergen's intentions are to force Sirius XM into bankruptcy, he would likely need to act now and purchase Goldman's stake of the 2.5 percent convertible notes in order to control the reorganization plan, CreditSights said.
But this would be very expensive as Ergen would need to buy the entire Goldman stake.
As of Thursday, the bond price for the 2.5 percent convertible notes had climbed over par, he said.
"The theory here would be that he wants to buy back the existing debt on the cheap after a bankruptcy. To control the reorganization plan, he would need a blocking position of one-third of the senior unsecured bonds, we believe," he said. (Reporting by Tom Ryan; Editing by Jonathan Oatis)
not looking good going into close
http://online.wsj.com/article/SB123388180101154945.html
Info on how much dept echostar owns of siri
I was able to get this whole artcle by googling echostar/sirius
Last edited by ray; 02-06-2009 at 04:58 PM.