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Where the hell is the stock going??

G

gumbo

Okay, I bought a bunch at 4.24 and some more at 5.87. Didn't sell it (stupidly!) at 9 when Mel came on board. Didn't sell it again at 7 in January after Howard started. It's funny money and I can afford to hold it for a while.

But the damn thing is sinking like a rocket. Anyone else watching and wondering?
 
> Okay, I bought a bunch at 4.24 and some more at 5.87. Didn't
> sell it (stupidly!) at 9 when Mel came on board. Didn't sell
> it again at 7 in January after Howard started. It's funny
> money and I can afford to hold it for a while.
>
> But the damn thing is sinking like a rocket. Anyone else
> watching and wondering?
>


I sold mine long ago, and i'm still watching. The problem is that investors don't want more talk or jump on the bandwagon everytime a Stern or Oprah signs up with the service. Plus it's cash-in season.
Now it's like it's time to walk the walk and talk the talk.....let's see you make money on your own now, or close in surely and steady on the deficit, then we can jump in with further investments again.
 
> > Okay, I bought a bunch at 4.24 and some more at 5.87.
> Didn't
> > sell it (stupidly!) at 9 when Mel came on board. Didn't
> sell
> > it again at 7 in January after Howard started. It's funny
> > money and I can afford to hold it for a while.
> >
> > But the damn thing is sinking like a rocket. Anyone else
> > watching and wondering?
> >
>
>
> I sold mine long ago, and i'm still watching. The problem is
> that investors don't want more talk or jump on the bandwagon
> everytime a Stern or Oprah signs up with the service. Plus
> it's cash-in season.
> Now it's like it's time to walk the walk and talk the
> talk.....let's see you make money on your own now, or close
> in surely and steady on the deficit, then we can jump in
> with further investments again.
>


Yep. Hysteria and speculation only go so far. Same during the dot com craze, people threw money at Sirius cause it felt good not because the business model made one lick of sense.

Gumbo better be prepared to wait a long time if ever. Im still holding JDS Uniphase and its over 5 years since it burst.

Right now neither XM nor Sirius can be profitable business as configured. I think there has to be an eventual merger and then perhaps.
 
Just hold on to it. It's not like you bought Cisco
at 70 during the dot com craze and are still
waiting to cash out. 4 or 5 bucks is very cheap.
I would imagine in six years that stock should
be between 25 and 35 dollars.
 
I agree with southpark, hold on to your stock as long as you can.

The Sirius stock will be sure to rise as soon as Infinity/Viacom point man

Mel Karmazin REALLY takes over the helm and turns Sirius into a

commercial powerhouse. Sirius is in the infant stages still, just like the

early days of cable tv. Value will rise with commercial viability and investor

interest. Oh and paying off the 1/2 billion dollar gamble they call Stern.
 
> Right now neither XM nor Sirius can be profitable business
> as configured. I think there has to be an eventual merger
> and then perhaps.
--------------

I don't know much about Stocks.... but what would happen to our stocks in a Merger?



John<P ID="signature">______________
Awsome Voiceovers for your station.
JohnChartier.com
206-600-2629
</P>
 
What did you expect?

> Okay, I bought a bunch at 4.24 and some more at 5.87. Didn't
> sell it (stupidly!) at 9 when Mel came on board. Didn't sell
> it again at 7 in January after Howard started. It's funny
> money and I can afford to hold it for a while.
>
> But the damn thing is sinking like a rocket. Anyone else
> watching and wondering?
>
First of all rockets explode, ships sink. As for holding on to your Sirius stock I would hope that your portfolio is more diverse than just investing a great deal of your money into one company. If not, then you are screwed.

There is an old trick when it comes to buying stock. Buy low and sell high. You apparently have done the reverse. Here is my advice, for what its worth.

1. Keep your Sirius stock and hope that the price will eventually increase. The only thing you are suffering at the moment is a paper loss since you have not withdrawn your money. A question you might ask your broker is whether or not you are able to buy more stock with the current funds you have invested?

2. Sell the stock; Plain and simple. If you are staying awake nights worrying about your money, just take the loss and be done with it.

Personally I would have never invested money into Sirius or XM because if you look at their books, both companies are deep in red ink. Combine that with the huge salaries being paid out to certain on-air personalities, plus other expenses like new studios, equipment, and you are investing with a company that does not stand on firm financial ground.

Now some people compare Sirius with CNN when it first started out. Remember however that Ted Turner could afford to keep CNN afloat until the network became profitable. Plus CNN debuted over 20 years ago when cable TV was in its infancy. Satellite radio is attempting to win over people disgruntled with terrestrial radio. Most people who don’t listen to terrestrial radio are downloading music from the internet, listening to I-Pods or CD’s and could give a damn about shelling out money for a satellite radio plus pay monthly fees.
 
> > Right now neither XM nor Sirius can be profitable business
>
> > as configured. I think there has to be an eventual merger
> > and then perhaps.
> --------------
>
> I don't know much about Stocks.... but what would happen
> to our stocks in a Merger?
>
>
>
> John
>

Would depend on the terms.

I aint an expert but in general if one company is purchasing the other company the purchasing company will buy the other company shares back with either cash or stock in the combined company.

If its a pure merger they could simply reissue stock in the combined company.

There's pobably a lot of options but unless a bankruptcy is involved your value will be preserved.
 
> Just hold on to it. It's not like you bought Cisco
> at 70 during the dot com craze and are still
> waiting to cash out. 4 or 5 bucks is very cheap.
> I would imagine in six years that stock should
> be between 25 and 35 dollars.
>


Nice imagination.

Have you even seen the financials for either XM or Sirius?

Not the way to make money in the stock market but to each his own.
 
>but what would happen
>to our stocks in a Merger?
> >
>
> Would depend on the terms.

I had an Internet Service Providers stock that rocketed into the 40s then sunk back down close to approx 5 where it stayed for an extended period. They too could never become profitable.

Eventually another larger ISP purchased it. They agreed to pay a dollar or so more (6-7) per share over the then-current trading price. Not much choice for the smaller shareholder. I did the online trading thing and the money just showed back up in my account automatically.

The company has been through like 5 different owners since then.
 
> >
> > I don't know much about Stocks.... but what would happen
>
> > to our stocks in a Merger?
> >
>
> They will take off like a rock.
>

I thought an XM-Sirius merger was prohibited under the terms of their licenses. Nothing prevents a Disney or a Time Warner or a News Corporation from snapping up one or both of them, though.
 
Thanks to everyone for the advice. This isn't a huge percentage of my money and I can afford to let it sit. I wanted to see what your thoughts were for the future.

Buy low/sell high is right. But I saw the stock top $9 when Mel joined and figured it would go higher when Howard crossed the street. One lesson I've learned for investing is to set a target selling price, and stick to it, no matter how you think the stock will do after the sale. Greed isn't good.

Mark me a 'long'.
 
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