SIRI Intraday Updates for the Week of 12/22/08

[Demian]

Cramer bashing SIRI down in the pennies......what do you expect from another pump and dumper?

http://www.thestreet.com/story/10454...m_ven=GOOGLEFI

"Funny, but normally you would be buying General Motors (GM Quote - Cramer on GM - Stock Picks) and Ford (F Quote - Cramer on F - Stock Picks) on this but I would avoid those two like the plague. You know, there was another time when I would actually think about buying Sirius-XM (SIRI Quote - Cramer on SIRI - Stock Picks), but that's one of those companies that will be issuing equity from now to kingdom come. Like so many other companies, Sirius issued gigantic amount of debt that must be paid down before anyone can own the equity. And while that company never had the cash flow to pay off that debt, why did those that did have the cash flow not do it more?"

[trippingthespeculatingpos]

keep up the good work demian, keep those bitches in line

[Demian]

This ****er doesn't mention that because of the current Nasdaq extensions there is no delisting risk until 2010......for crying out loud! The misleading bashing is just unbelievable.....

http://industry.bnet.com/technology/...ock-sale-work/

Sirius XM Tries to Save Itself; Will Stock Sale Work?
By Erik Sherman | December 24th, 2008 @ 9:03 am

Sirius XM got approval from shareholders for a reverse stock split and now is working on a plan to issue over 108 million new shares of stock. The latest financial moves by Sirius are necessary, given a stock price that’s a little over a dime a share, potential Nasdaq delisting, $193.6 million in convertible bonds maturing in February as part of about $1 billion in loan repayments next year, and not enough cash. But there’s a big question as to whether any of this will pull the company out of its death spiral.

The problem is that Sirius faces fiscal disaster from a number of different directions. Start with the current stock price of 12 cents a share. If it doesn’t get the stock price out of the basement, then Nasdaq will take the company off its roster, because there’s a dollar a share minimum to stay on that exchange. That’s a kiss of death. Company shareholders would lose liquidity, possibly making the value even lower than it is now. Sure, many companies do trade over the counter, but not in a big way. The fewer the people who want to own stock, the less of a chance the company has to use stock as a tool to eventually get itself out of the pit it is in.

But there are two additional problems that come out of being delisted. One is that delisting is probably one of those conditions triggering financial covenants in loans, lines of credit, and other obligations. Suddenly, Sirius wouldn’t be simply be facing a billion of payback next year, but some unspecified and probably large sum that would come due immediately, with no time for management to react.

Also, further blows to the stock would translate into even worse credit ratings, meaning that the chance of borrowing enough to keep going in the short term would become remote – and credit ratings would be another potential trigger to financial covenants. The credit downgrading already started to happen yesterday, when Moody’s dropped Sirius from Caa1 to Ca, which is as low a rating as the firm provides, and means “in default with little prospect for recovery.”

Forget about cash on hand being a help. According to its last 10-Q, Sirius burnt through over $5 billion in cash in the first nine months of this year and had cash and cash equivalents of under $360 million at the end of September. A look at the cash flow statements shows that money continues to go out at what is at least an order of magnitude than it comes in. The company simply doesn’t have enough cash to keep going, even if there were a pot of gold at the end of the rainbow just down the street. And with the turmoil in the auto industry, one of the big consumers of satellite radio, the chance of more lucrative days to come is slim to none.

The stock moves are desperation on the part of shareholders as well as management, which actually went so far as to predict that it would hit a profit by next year. Maybe so. Maybe investors will regain confidence. Maybe the reverse split, compressing at least ten shares of stock into one, would drive the value of a share up to a dollar, with the additional sale of common stock covering the February bill. But that’s arithmetic and logic, and even when this might be the last hope for Sirius XM, the market doesn’t work that way.

[Demian]

Slight decrease in the reported SIRI short interest. It really means nothing as this is a lagging indicator and really doesn't reflect all of the shorts. That kind of massive short interest could really create a massive short squeeze on some good news - like the financing..

http://uk.reuters.com/article/market...45572220081224

FACTBOX-Biggest changes in Nasdaq short interest
Wed Dec 24, 2008 7:10pm GMT

Dec 24 (Reuters) - Short interest on the Nasdaq fell 3.3 percent in
mid-December, the exchange said on Wednesday, suggesting a decrease in bearish
sentiment in the stock market. For story please see [ID:nWNA3107].
Below are the five Nasdaq stocks that experienced the largest increases and
decreases in their short positions from late-November to mid-December, according
to information released by the exchange.
The five companies with the largest overall short positions are also listed.
The latest date is as of Dec. 15, while the previous period's data is as of
Nov. 28.
COMPANY Dec. 15 Nov. 28 NET CHANGE PCT CHANGE
-----------------------------------------------------------------------------
FIVE BIGGEST INCREASES:
Clearwire Corp (CLWRD.O: Quote, Profile, Research) 14,741,924 0 14,741,924 0%
Dell Inc (DELL.O: Quote, Profile, Research) 52,175,537 44,201,119 7,974,418 18.04%
Intel Corp (INTC.O: Quote, Profile, Research) 98,595,636 93,321,145 5,274,491 5.65%
Jack In The Box Inc (JACK.O: Quote, Profile, Research) 5,215,367 0 5,215,367 0%
Juniper Networks (JNPR.O: Quote, Profile, Research) 24,270,718 19,333,915 4,936,803 25.53%
FIVE BIGGEST DECREASES:
Life Technologies (LIFE.O: Quote, Profile, Research) 6,445,185 24,801,163 -18,355,978 -74.01%
Comcast Corp (CMCSA.O: Quote, Profile, Research) 78,264,305 96,074,740 -17,810,435 -18.54%
Level 3 Comm. (LVLT.O: Quote, Profile, Research) 200,967,827 215,013,999 -14,046,172 -6.53%
Oracle Corp (ORCL.O: Quote, Profile, Research) 47,917,795 57,646,941 -9,729,146 -16.88%
Charter Comm. (CHTR.O: Quote, Profile, Research) 63,060,536 70,249,433 -7,188,897 -10.23%
FIVE BIGGEST POSITIONS:
Sirius XM Radio (SIRI.O: Quote, Profile, Research) 263,767,753 263,151,674 616,079 0.23%
Level 3 Communications 200,967,827 215,013,999 -14,046,172 -6.53%
Intel Corp 98,595,636 93,321,145 5,274,491 5.65%
E*TRADE Financial (ETFC.O: Quote, Profile, Research) 95,228,348 95,570,246 -341,898 -0.36%
Comcast Corp (CMCSA.O: Quote, Profile, Research) 78,264,305 96,074,740 -17,810,435 -18.54%
Source: Nasdaq data as of Dec. 15, Reuters Estimates
(Reporting by Phil Wahba)

[trippingthespeculatingpos]

I THINK the shorts will get burned if they stay in much longer

[Siriusowner]

the shorts will get burned if they stay in much longer

Can I ask why ? Or is this going to be taken as a negative question ?

[trippingthespeculatingpos]

can i ask why not? does it make sense to short a stock thats got only 12 cents to go?

[m4svt]

can i ask why not? does it make sense to short a stock thats got only 12 cents to go?

we may have a long way to go to .0001 lol (doubt it tho).

[winagain35]

There are very few retail investors who are able to short a .12 stock.

[Siriusowner]

can i ask why not? does it make sense to short a stock thats got only 12 cents to go?

You said the shorts will get burned, like the stockholders ?

There's along way down from 12 cents to 0.