Stock Prices

Discussion in 'SiriusXM Soundwave Cafe' started by starmate, Oct 20, 2008.

  1. starmate

    starmate Member

    Is there any plans on having a section dedicted to stock prices of the various digital radio company's? Im interested in a discussion as to why the siri stock is practically in the toilet.
    .38 cents to be exact as of 3pm today. Why is it? If Sirius essentially is gobbling up XM, why the shitty price?

  2. jwt873

    jwt873 Member

    When Sirius bought XM, they gave the XM shareholders 4.6 shares for each single share of XM they held. After the merger Sirius issued even more stock to try make some more money. In all, they've added almost a billion new shares to the pile. Since the number of people buying SIRI shares didn't change much, these extra shares caused a dilution of the price and brought it down.

    Sirius has many outstanding loans. They total around 3 billion dollars. These loans are coming due over the next couple of years and since Sirius hasn't got 3 Billion sitting around, they have to refinance the loans. About 1 billion of this has to be refinanced in 2009. The current financial crisis has made it difficult to borrow money. This has many investors doubting that SIRI will be able to refinance all their debt. If they can't do this, then the only other option is bankruptcy. (FWIW, Mel has only raised 300 Million of the 1 billion owed in 2009 so far).

    Sirius has never made any money. They've been moving towards a profit year by year, but they still are losing a little under 1 million dollars a day. Many investors expect that due to the economic crisis and coming recession, the subscriber numbers could drop significantly in the coming year causing the daily loss to increase.

    It will be interesting to see what the numbers are for the third quarter of 2008. If the numbers are down, the stock could drop some more.... The 3Q report should be released in the last week of October or the first week of November.
  3. DAB

    DAB Mod Emeritus

    No plans to add a stock forum guys!

    If you want to discuss stocks, you probably need to do so at SiriusBuzz where their whole point and purpose is the financial and stock side of Sirius XM.
    Last edited: Oct 21, 2008
  4. Manco

    Manco Active Member

    I sold my stock at .42 after taking a huge loss. The reason is because in the panic of recent times, money will flow back into less risky stocks before it flows back into SIRI. With the proceeds I purchased a stock that had been beaten up till it was paying a 28% dividend. I'm up 50% on share price, and get a dividend to boot. That still doesn't make up for the losses, but it does ease the pain a bit.
  5. ClubSteeler

    ClubSteeler Member

    Good call.

    I enjoy yhis forum. Too many other forums go crazy with the # of sub-topic forums. Every thread seems to be judged as to worthyness of the main forum and gets moved around by moderators. It's annoying.

    As to the topic, I would think that the second Sirius can announce that they receiving funding, I think the stock price will dramatically raise (Keep in mind that a dramatic raise is still pretty much worthless). I would expect it to be low through 09 as all of the merger issues are finalized and new radios come out.

    I'd expect 2010 to be a telling year. Everyone that loves and or hates the merger will know by then exactly what they have. New radios in time for 09 holiday season I would hope. An entire post-merger year to track whether or not subscriber numbers met expectations.

    I think 09 will be a wait-and-see year, with a pessimistic view, a lot like Sirius was pre-merger.

    If they blow it, like most of you think they will, and you XMers leave in mass waves in 09, they're done.

    There is enough "potential" success here, that I fully expect them to get financing and at least play this merger out and get a chance to see what happens.
    Last edited: Oct 21, 2008
  6. Manco

    Manco Active Member

    Sirius exchanges 30.5M debt for 67M shares of stock. While this helps the balance sheet, it dilutes the stock even further.

    Sirius exchanges debt for shares: Financial News - Yahoo! Finance

    This is the problem with this stock, too much debt, and more dilution is probably on the way. So all the gains can be eaten up in dilution. I expect them to survive and eventually they will probably become a good investment, but only after they clear up the debt and renegotiate contracts that are more sane.

    They are going to do a reverse split at some point, which will probably make it easier for it to lose even more value.
  7. racefla

    racefla New Member

    Its sad that Siri XM is now trading within a few pennies of ONT.
  8. Fergz99

    Fergz99 Member

    The price will stay low as long as the company continues to overpay for content, and in the case of Howard Stern, way over pay for content. 500 million dollars for 4 days a week and 4 hours lazy radio is a complete waste of money. It didn't work . They need to rid themselves of that contract on move on.

    Stern gets 500 million and the stock is worth 36 cents ? Looks like all the money was put into one wasteful basket.
    Last edited: Oct 21, 2008
  9. MAJ Badmotherfarker

    MAJ Badmotherfarker is drinking a beer.

    Yea, but have you seen Stern's house???
  10. TSS Taylor

    TSS Taylor DRC Fan

    I'm against the idea of that sub forum on here. For a few reasons. The main being that SiriusBuzz really does a thorough job on that discussion.

    I also feel that on any of the SIRIUS related forums and especially the finance ones there are a lot of people purely trying to manipulate the stock up and down. I don't want to be associated whatsoever with that. I don't feel like the internet will ever be as unregulated as it is now. IMO the way that deregulation affected our economy I think the same can be said about the ease of slander online. When it affects peoples savings account and personal finances I think it goes a bit too far.

    How's that for an opinion ;)

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