I am thinking the R/S won't work and I would lvoe to get some comments from others:
I believe we can absolutely COUNT on this stock taking a massive nosedive once the R/S hits because SIRI is a heavy-volume highly-volatile stock and the SP often swings wide arcs on speculation alone. The price is subject to move in big percentages with no news at all. Given that reverse splits are historically notorious for getting hammered by shorts and because shorts are licking their chops waiting for this R/S to be announced (and it would be silly to assume SIRI is somehow immune to this phenomena), I just don't think SIRI is strong enough to withstand that sort of onslaught. That's one reason the reverse stock will go down.
Here's the second reason:
Friggan's sentiments is reasonable. To be fair, he did say he would also be willing to stick in there if he made enough before the split to not get anxious about any wild swings that may occur. But there are a LOT of people who have lost a lot of money so far. Given the downturn over the years, I believe many have been averaging down and will be content if they get the chance to break even. But this comment solidified my thinking that a R/S won't work. Many who manage to hold on leading up to the split will be unable to withstand the urge to protect themselves "until things settle down" - especially once the shorts kick in. So we'll have some investors selling to protect themselves prior to the split, we'll see shorts hitting this stock after the split (and we all know what impact they can have), and we'll have those who sell after the split because can't stomach watching their portfolio suffer at the hands of the shorting community.
There was one incredible psychological barrier through which SIRI must survive but if they have 3 or 4 factors working against them and they have nothing but hype to counter, I fear many are going to lose a lot of money and we'll all be back where we started.
Thoughts?