http://siriusnewsrumors.blogspot.com...red-again.html
Interesting points from crfceo, the stock is now heavily (92 percent) owned by institutions. Anyone want to crunch the numbers on how much of this was due to the newly issued shares, the institutional holdings of XMSR, and how much was truly a result of retail selling out at the bottom?
Uh, 92% owned by institutions? That seems a little high to me.Originally Posted by zcurzan
Even if that was the case, is this bad news for those still holding?
Assuming the number is legit, I guess its neither good or bad in itself. Obviously it doesn't impact the fundamentals of the business.
However, under the assumption that institutional money is smarter at investing decisions than the general public, it can be seen as a good thing that retail has sold out of the stock.
As the old conspiracy stories go, because Sirius was so highly retail held, it would be manipulated to a point until Wall Street could get their claws into it. Only then would it ever perform better.
So if you take a brighter post-merger future for satellite radio, coupled with institutional confidence, and it may be pointing to a more positive future for the stock. Only time will tell.
I think crfceo is on to something. That is to say his theory holds water. I held my shares, paid my margin call. Now we are among an elite group of 8 percent ready to ride the coattails of the Power Brokers. This does not discount the fact that we got screwed. There is no question about that. What mergers in modern history turned out like this one - wherein both stocks tanked? Bad GM report will make an interesting day. SIRI XM have done well with OEM's despite a down auto market.
Just keep in mind... Institutions don't trade shares all that often.
With 92% owned by institutions, that means that there are a lot fewer shares out there to be publicly traded... meaning there SHOULD be more demand.
Just as a caveat to that: Institutions often have a maximum percentage that any one fund can hold of a particular stock. With this merger, it may have put some funds that held both stocks over that limit. They may need to unload shares.. and fast. You may see that percentage drop over the next few weeks/months.
Hey Everyone,
So I jus listened to Mel's town hall meeting, and I was kind of surprised that he mentioned Cramer, and how he actually hurt the deal. I thought it kind of strange that Mel specifically mentioned it and by name. Obviously it made a big financial impact, and he is not taking it lightly. Now I am a finance major not a lawyer, but could SirusXM have a case against Cramer. He obviously hurt the company, and if we could prove that he said incorrect information or purpously tried to lower the strike price of the deal, couldn't this be a lawsuit.
Disclosure: I am not a lawyer, and if you are and this sounds ridiculous please don't hold it against me. I am just throwing it out there.
Here's the audio from the town hall for anyone that missed it.
Jump to 33:15 for the discussion regarding the mechanics of the offering (finally), share price reaction.
37:30 is when he calls out Cramer
"We believe the efficiencies of the merger are so significant and the benefits so great that it still makes sense even in an ugly market to do it....I think once and for all we have now put that liquidity issue aside."
Last edited by zcurzan; 08-01-2008 at 10:55 PM.
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