The Stock is so low

[letmethinkaboutit]

My radio just scrolled, "IOU" across it.

 

[jasper933]

What is going on with this company? Stock is down .16 cents.

How much lower can it go?
What can they do to raise the stock?
I don't want to see them go under because they do bring entertainment. Could they be positioning themselves for a takeover by another company?

Yes, I am a stock holder and lifetime subscriber and don't want to see them go under.

 

[4dude]

Looks like they may........

 

[Walter Graff]

Once again, don't confuse the stock market with the operation of the company. Investors choose to invest in a company, but just because the stock is low does not mean the company is in trouble. Operational costs and day to day have little to do with a stock price. Buying stock means you are buying a piece of paper that says you own a portion of a company, but when the stock price goes south your ownership means little. Don't worry ab out Sirius, they are doing pretty good right now with the purchase of XM's assets, eliminating redundancies and getting down to sorting out what programming works, and will hopefully just get better, stock or not. Unless no one has looked all stocks are suffering these days.

 

[landtuna]

Go to: http://investor.sirius.com/calculator.cfm and you can calculate how much money you've lost on your original investment.

Example: $1,000 bought 222 shares in 1994 which today is worth.....wait for it......$44.44

 

[Walking On]

Once again, don't confuse the stock market with the operation of the company. Investors choose to invest in a company, but just because the stock is low does not mean the company is in trouble. Operational costs and day to day have little to do with a stock price. Buying stock means you are buying a piece of paper that says you own a portion of a company, but when the stock price goes south your ownership means little. Don't worry ab out Sirius, they are doing pretty good right now with the purchase of XM's assets, eliminating redundancies and getting down to sorting out what programming works, and will hopefully just get better, stock or not. Unless no one has looked all stocks are suffering these days.

Yep, that's right...debt and the ability to borrow have nothing to do with whether the company will be able to continue to operate.

http://money.cnn.com/2008/11/19/markets/thebuzz/index.htm

 

[landtuna]

However, it's not totally good news that it would take 7 shares of SIRI stock to buy one small latte at you-know-where.

 

[Walter Graff]

Yep, that's right...debt and the ability to borrow have nothing to do with whether the company will be able to continue to operate.

http://money.cnn.com/2008/11/19/markets/thebuzz/index.htm

I love the internet. There was a day where you actually had to know something and had to think. Today all you have to do is link to a website and suddenly you "prove a point" or at least feel good thinking you have.

In business debt can always be negotiated, and money and stock manipulated to do anything you want. It's one of the reasons the article you point out uses the term "on paper" to describe Sirius' woes. In this economy there is not a company NOT facing the same potential 'credit freeze' as Sirius. We are where we are because money is no longer flowing for anyone. But economically, Sirius has shown 8% growth in a time when others in such industries of consumer sales have shown near double digit negative growth, and still show positive moment while taking on the debt management for absorbing a poorly managed company, XM. But this is not the first time. In 2004 they were also talking about Sirius and bankruptcy and a couple of other years too. Big start-up businesses often can seem like they are going no where but they always make it through. I don't see your receiver going blank any time soon. The NAB sure hurt them by keeping them from taking over XM for two years but it wasn't enough to put them out of business.

But your post is telling of many subscribers when it comes to knowledge of how business works, and a potential for downturn. An article I read recently about how Sirius was looking good despite the current stock situation said it best. The author said that most of XM and Sirius' subscribers couldn't tell you the difference between Chapter 7 or Chapter 11 bankruptcy protection, and as a result, their ignorance means that when they hear the word banckrupcy they cancel thinking the company is going out of buienss. That is a worse fear and more reality than what the stock price means today. While they probably will not, they should file bankruptcy. It would take care of some money woes and allow them to do what they do best while dealing with their debt repayments, taking better care of recent programming costs and readjust their capital spending sheet.

Of course, the bigger issue now is dealing with some of the lousy XM programming that diluted some of Sirius, and angry Sirius subs who could have done without it.

 

[Lancer]

Likely the stock will be reverse split 10:1. If you now have 100 shares at 15 cents each, you would then have 10 shares at 1.50 each.

Otherwise Nasdaq will drop them if they remain under $1 for over 180 days. May be more or less than 10:1 ratio, but you get the idea.

 

[Walking On]

Yep, that's right...debt and the ability to borrow have nothing to do with whether the company will be able to continue to operate.

http://money.cnn.com/2008/11/19/markets/thebuzz/index.htm

I love the internet. // So do I :-* //

Of course, the bigger issue now is dealing with some of the lousy XM programming that diluted some of Sirius, and angry Sirius subs who could have done without it.

I happened to run across the article on another board completely unrelated to this industry (just a bunch of four-wheelers afraid that their radios weren't going to work anymore, which is really all they are worried about on the topic). In the article, though, Mel seems to express some of the positions you articulate regarding the renegotiation of debt. He almost seemed confidently indifferent about it. Frankly, it's one thing he seems to be very good at, convincing people who invest or loan to give him more money, in spite of the apparent risk. Now, I admit that I'm a bit simple-minded in these matters, but if Mel thought that XM's progamming sucked, and it's customer base wasn't necessary, why did he bother buying it? In the long run, I can see where he now won't have to pay all that money for "talent" such as Howard, NASCAR, Opra, Martha, etc (since there won't be a competing service driving their value up), but does he not have to satisfy the contracts that are in place? So, it seems that in the short run, the only money he can save is by reducing now redundant staff, operating expenses, and by increasing the customer base. The first two will obviously happen, the third seems to be the trick right now.

As far as the quality of the programming goes, Sirius won, so it's a Sirius product now. Blame them. If you don't like it, do what you feel necessary. I'll listen as long as it's worth it, relative to the rest of the market and technologies. I will say that I'm glad that Deep Tracks has survived so far.

 

[Snafu]

Its not just Sirius/XM. The whole radio industry is getting pinched by Wall Street. Westwood One and Radio One have already been delisted and that list could grow to include Citadel and Emmis before too much longer. None of those companies have the debt overhang that Sirius/XM does, but none of them have year over year growth either. At least two of them don't have the cash flow to cover half of their next bank note that is coming due in 1Q 2009 and with the credit market essentially vaporized there will be casualities.

Mel acts as if banks are going to be lining up to rewrite his $1B like they always have or maybe he thinks that he can get in line for some help from DC. This isn't the same environment that Mel has been working in for the last 20 years and taking for granted that things are always going to work the way they used to is playing with an enormous risk.

 

[Shredder]

I just love it how people react sometimes...

Bank:'Don't have a house, and no job in the last 5 years? SURE! We'll give you a bank loan...

Market Crashes....

Bank:'Have excellent bill payment history? Steady job for 45 years? Never once had a sick day and haven't taken a vacation in 35 years? Sorry,
No Loan for you.. NEXT!'

Makes me wonder if people are not that far off from how the citizens of Springfield act on the Simpsons .

But, wouldn't companies be better off NOT being in the Stock Market? I still don't get how it all works, but they wouldn't have to worry about loosing any money
based on all the gambling that goes on there...