Save Sirius Launches New Site
Save Sirius, founded by Michael Hartlieb faces many challenges. Organizing people is a monumental effort. Getting all of those people to focus in one given direction is a task that many are not successful at.
Save Sirius has both supporters as well as detractors. One issue that is a potential hardship on the organization is that some people feel the efforts of the organization are going too far. Wanting to stop a reverse split, and the addition of new shares to the authorized count is one thing. Unwinding the merger, and sending people to jail is quite another. For this reason, the act6ivities of Save Sirius will always be polarizing.
One common theme I have seen is that shareholders feel that the company can wait and hold off on a reverse split decision. This is true, but there are many potential reasons the company may want to have this ability in their pocket. In contrast, a person could reasonably ask why Save Sirius is not holding off to see what happens with the Q4 and financing due in February prior to moving forward.
What is happening here is that there is no happy middle ground. With regard to Save Sirius, shareholders are either for or against an “all-in” situation. If Hartleib is correct in his allegations, the company will not survive, at least not in the manner that satellite radio consumers would expect. If he is wrong, then everyone stressed themselves out for a cause that bears no fruit either. Like any issue that is being dealt with in court, it is typically the attorney’s that gain wealth, and that could well be the case here as well. The latest dismissal means another filing, more responses, and more money for attorney’s on all sides of the issue.
Save Sirius in my opinion raises some valid issues that may be of concern to shareholders. They also raise issues that, at least up to this point, are circumstantial in nature. Shareholders should consider all sides of the issue, whether good, bad, or ugly. Shareholders should hold as strict a yardstick to the Save Sirius as they do to Sirius XM Radio.
My opinion… most people fall into an opinion that is between the stance of the company and Save Sirius, the attorney’s will make money.
Position – Long Sirius XM
any advice for those of us who have lost 95% ???
any realistic chance of recovery for us? I’m averaged in at $3
“Like any issue that is being dealt with in court, it is typically the attorney’s that gain wealth…”
You’ve got that right Tyler. All this does is transfer money to the attorneys at a time when cash is needed most.
By the time this thing is settled in court it will be moot. The company will have either received financing and shown positive cash flow, or the company will have defaulted in February. If it’s the former, we all win, and the shareholders are happy. If it’s the latter, the bondholders will own the company.
I agree with you… Why not wait until February to hire the attorneys? Maybe there won’t be any need to sue at all.
For the next 2-4 years don’t count on getting your original investment back. You will have a chance to make a little money in SIRI in the meantime if they don’t R/S and don’t dilute by buying and selling the swings in the interim.
On a side note, I’m not a member of SaveSirius because I don’t know all of the facts. In my opinion there are both good and bad things about SaveSirius based upon some of the things I have read.
One thing I do know however is that if a R/S gets voted in along with the added dilution all of us with a cost basis above $2 are toast for a long time if not forever.
People seem to underestimate the added risk of the company going BK if the R/S and dilution are voted in. This would be similar to what is happening with the auto bridge loan (bailout). You temporarily keep it alive but in doing so you add much more poison to the company.
The company needs to try and survive through existing circumstances by continuuing to cut costs, add subscribers (through better marketing) and obtain better financing or extend existing financing.
I feel that Sirius wrote it’s obituary when it took on XM’s debt. I still feel that we should have let XM BK but what the heck do I know. I guess we’ll never know how that would have turned out.
Just my opinion. I’m long SIRI and a loyal subscriber.
GIS
Well said.
Vaporgold
GIS,
“People seem to underestimate the added risk of the company going BK if the R/S and dilution are voted in.”
Unfortunately, it’s the exact opposite that’s true. If the company does not have the option to raise capital through issuing additional shares, lenders will be even less likely to loan them money. The R/S and dilution are measures to AVOID bankruptcy and delisting. Why don’t people understand this? By voting NO on these measures you are severely limiting what little bargaining power the company has left.
Think about it.
If Hartlieb really wanted to help Sirius, he would organize 1 million shareholders to loan Sirius $500 each, at 15% interest.
Winagain35 – I’m sorry but I have to disagree. I’ve been down this road plenty of times in the past (I’ve been in the securities business for quite a few years) and I’m sorry to say but most people don’t understand cause and affect, unintended consequences and the basic function of how public money (stocks and/or bonds) work in the public company arena.
I wish you well however in your investment with SIRI based upon your own outlook and analysis.
Well, since you’ve been in the “securities business” for quite a few years and clearly understand the “cause and AFFECT” and the basic function of how public money works – Please explain to this unsophisticated investor how giving the company one small bargaining chip when dealing with stingy lenders will bring us closer to bankruptcy… and how DENYING the company that option is the best choice.
Thank you in advance.
Winagain35 – I’d like to make one last statement in regards to your post. I understand the angle you are coming from and that would be conventional wisdom as seen from the surface so I won’t hold it against you but think about it in a little deeper sense. What really does the additional authorization do? What really does the R/S do? What are the real implications of these things do?
I’ll give you one clue – Why is it we are even having to talk about this now?
anyone know how Hartleib’s lawyers are being paid?
Siri’s lawyers are making money (defendants’ lawyers usually always do), but Hartleib’s lawyers may or may not be making money, depending on their fee agreement.
Hartleib is practically irrelevant, and gets way too much attention.
I agree to the fact that what remaining hard earned money i have and gratefully continue to earn working a full week at a great, strong company, I’ll be damned if I give any $$$ to attorneys, Hartleib, Sirius, a flight to go fight some battle that no one wins, hell or even Savery Securities Inc. (j/k, I said that with a smile, see 🙂
Me , myself, and I, and a hot mama will go out to 6th street, like Tyler said, and indulge in good times, and enjoy being alive and living in America, even if she is torn and broken, still love my land.
Happy Holidays everyone.
May 2009 be so much better.
-Jason L.
You need to go on the website savesirius.org It has forums etc. It also has a place that shares all of the documents. I think everyone should educate themselves on what transpired and what a derivative lawsuit is.