What are the chances we can AVOID a R/S??

[Wirestripper]

wirestripper the att servicde sucks, 20 channels for 10 bucks a month>? no satrad lover is going to bother with that. The apple one will be way diff as you will be able to get stern and everything else for 2.99 a month. I think the iphone app will make a huge impact.

I understand your position, but I don't see a deal like that in the near or mid term. SIRI is marketing their own direct feed hardware. I don't think this 2.99 internet thing was ever meant to be perpetual. It's just a get to know the program promo. The prices are certain to be going to go up for I service. I can't say how high. They really don't want to do it at that price, I can surmise pretty quickly.

Any internet capable phone,including i-phone should be able to get I service,,,Am I wrong in assuming that? I have not signed up for internet service on my phone but I have it available. I have not tried it on a subscription music service. So I don't know for sure, but adding a I phone app seems to be a non-event for the bottom line, and that is all I am trying to get across.

There seems to be a lot of pressure to change siri into a internet broadcaster. The idea is ok by be, but it has to be monetized sufficiently to make it a secondary method. They would not be launching sats if there was anything profitable about it or the idea that internet was any sort of salvation for the company.

Besides that, if you want Howard on the internet, you can get it streamed from Howards site.

As a OEM, and a broadcaster, they have to control the process and squeeze every drop of revenue they can out of it. Apple does that and any deal with them results in nothing for the provider but gross unit sales at cost or below.

That's what happened to at&t. They keep saying the I-phone has been great to them, but in the end it will fall apart on costs. Investors have already figured that out. I don't want SIRI to end up with any sort of a deal like that. They have already done something like that with GM to get their units in the field. It ain't helping siri, as much as it is GM.

That's my concerns.

[Newman]

Hi, Sirius is not going to buy back stock. They still have 3 billion+ in debt. They will be paying off debt at least till 2014. Long before then they will execute the R/S removing the need to ever buy back stock.

So the real question is will they ever be debt free and if so what will they do with their profits?

Here is the deal:

Sirius currently owes about 3.5 billion in debt.
According to their projections, from now until 2013, they will produce 3.4 billion in free cash flow. If they put every penny of FCF into the debt, they will be debt free by 2014.

When those projections were made, I thought they were lowballing the numbers, but with the economy of today,they would be doing well to just HIT their numbers. Look for guidance in the CC on the 17th. That, my friends, is where the fate of SIRI lies.

[sl62]

Quick question,

To me it seems that the more "savvy" investors here are almost "pushing" for an R/S or at least think it is necessary.

Obviously I am against an R/S and I think it is not needed. This stock IMO has never really traded on fundamentals, for the most part it has been pure speculation. IMO positive speculation will pick up and ramp the price up again. At least to levels that SIRI won't have to worry about delisting and beyond.

I understand everything you guys have said about how the float needs to be reduced, help stave off manipulation, increase buying by funds etc...

Basically my question is, do you guys see the R/S as a benefit to you as a shareholder, and could you help me understand how it could benefit me directly if at all? To me SIRI can still have the price turned around on it's own, I see the R/S as nothing but negative. I own 90,000 shares and I am more than happy to see this thing go to 2 or 3 dollars in the next 1-3 years! If the R/S happens I own significantly less shares "limiting future earning potential" and run the risk of this stock being beaten back down. I will sell if the R/S happens and rethink my position.

If anyone could help me understand how this could benefit me direcrtly as a shareholder I would be grateful!

Now I will stop posting about the R/S because really only time will tell.

Sincerely Unsophisticated SIRI investor

Hopeful...

I will be happy to further opine on your post with more info, but first i need to know how long you have been in this stock (or following the company)..

[mogami]

Hi, The potentional increase per share is higher the fewer shares in the float.
So you trade having more shares that increase fractions of a cent for fewer shares that go up in larger increments.

My opinion is no one should be holding shares bought at more then .50 They should have sold them and bought back at a lower price. (more shares lower price for the same amount of investment) I understand that it is too late to do that now because it only worked if you sold high enough to buy back when price was much lower. In that case you need to actually increase your investment by buying shares here at bottom.

You will never recover your investment if you are holding shares bought at 1.50 and are waiting for SP to recover to that level. It's the .14 shares that will recover your money but you need 10x as many.

[john]

It bewilders me why people are so upset about a RS. I could understand the dilution but not the RS. Listen people the dilution is what cost you, the RS cost you nothing. It is all about cause and effect, the cause was the dilution the effect would be the RS. I mean I have seen people that were happy we had to pay out 40% (the dilution) of our company AS A FEE and are now mad about a RS, that makes no sense.

[trippingthespeculatingpos]

cause i dont think it is neccessary to do one unless for the sake of delisting, i think it will be taken as BAD NEWS, and u know how siri takes BAD NEWS. Its just a way to make the stock look higher when in reality the value is the same, so okay it looks prettier, but it doesnt change a damn thing. I am amazed at how people are so willing to do one, shit you have to put me against a wall before i will willingly to want to do one. Right now siri cant drop any further, if u r/s then we got room to fall, and in this current market anything with room to fall is falling. REGARDless of fundamentals

[mogami]

Hi, A R/S is positivity required at some point. There are too many shares in float. SIRI has a larger float then FORD. The market cap does not justify that many shares. we are at .15 in large part because of the size of float.
The company is hamstrung forever regarding future use of equity to raise cash because of float.
There is no possibility of avoiding a R/S.

[trippingthespeculatingpos]

will see mogami, i and many other will sell on a r/s so just figure what thats going to do for pps

[mogami]

will see mogami, i and many other will sell on a r/s so just figure what thats going to do for pps

Hi, For every person to sell there must be someone to buy. Unless you own several hundred million shares the change in PS will be gone before your money is actually in your account.
The buyer will not be tied to your price average. You will be selling because SIRI is actually doing what is best for their future.

You bought when they were destroying the equity. I have heard of these contrary methods.

[john]

trippingthespeculatingpos, Hummmmm, Ok what would be better almost never getting back over a dollar because the shares outstanding and PPS make it easy for the stock to be manipulated/naked shorted or cutting the shares down to a respectable level so it is easyer to track. Now I to would not like it if it was done just for the point of doing it to make it look better. The fact is though, there are many benefits to doing it that outweight the cons. There are also many catalist that this company has going on that most others that do a RS dont. That is the difference between making a RS work and it not working.


I know it is hard when you now have 200,000+ (wohooo) shares of a company to go from that to 8,000+ (dam) shares. Even though the realitiy is it doesn't make a bit of difference