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Posted
Oct 07 2009, 03:51 AM
by
Douglas McIntyre
Rating:
Money Blog: Top Stocks Blog - MSN Money
There are two ways to look at management’s sales of millions of shares in Sirius XM (SIRI). One is that the executives saved the company from an almost certain bankruptcy and deserve a payday for that. The other is that the people running Sirius believe that the stock has peaked.
According to a report in The Wall Street Journal, the top five officers at Sirius plan to sell shares they have received as they vest. The total of the grants is 10 million shares which vest over 40 weeks. The executives have already sold seven million shares worth $3.2 million.
There is a reasonable argument that Sirius shares have peaked, at least for the period between now and when the company releases its next set of earnings. Sirius stock currently trades about where it did in May, around 58 cents. The shares had a brief run to 78 cents in August, but for five months the price has been relatively flat.
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Posted
Jul 14 2009, 04:26 PM
by
CAPS Editor
Rating:
Money Blog: Top Stocks Blog - MSN Money
This post comes from Rich Smith of partner site The Motley Fool.
It's the worst nightmare of every investor in today's market -- buying a rocket stock just before it takes a nosedive.
Now I readily admit that sometimes stocks rise for a reason. But sometimes, the rise becomes the reason. No matter how often we caution them not to, investors have a habit of buying "hot" stocks, and trusting momentum to keep 'em moving upwards.
Problem is, if the price goes up too much, even a great company can turn into a lousy investment. Below, I list five stocks that skyrocketed but could be ripe to fall back to earth:
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Posted
May 04 2009, 12:28 PM
by
Minyanville
Money Blog: Top Stocks Blog - MSN Money
I've written in the past about Sirius XM’s (SIRI) convertible bonds. There's a 10% Sirius XM bond maturing December 1 of this year with a checkered past and a highly probable happy ending. This bond began its life over 4 years ago, when XM Satellite Radio issued it with a 1.75% coupon and a conversion price of $50 per XM share. When you stop laughing, read on.
Last year a group of the holders of these bonds threatened to sue for immediate full repayment of principal, even though the bonds weren't due to mature until December 2009. The holders believed that the language in the bond’s indenture qualified the merger with Sirius as a legal “change of control.” In general, a change of control allows convertible (and other) bondholders to require the issuer to repurchase the bonds at par, upon completion of the change. This is commonly known as a “poison put” in the bond market.
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Posted
Apr 21 2009, 02:15 PM
by
James Dlugosch
Rating:
Money Blog: Top Stocks Blog - MSN Money
This post comes from partner site InvestorPlace.com.
This is not the scenario I had envisioned for Sirius XM Radio (SIRI) when I laid out a fairly simple path to a long-term $20 valuation. Unfortunately, government (intentional?) delays with respect to the Sirius/XM merger, combined with financial Armageddon, got in the way.
Now, after a very real brush with death at the start of this year, investors are left to wonder if SIRI is worth holding or owning anew. I emphatically say the answer is yes.
Yes, it is true SIRI's stock collapsed to dangerously close to worthless, but the demise of SIRI had nothing to do with its long term business prospects. Satellite radio is not dead, and neither is SIRI. The only question is who will own SIRI when all is said and done
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Posted
Mar 20 2009, 04:46 AM
by
Kim Peterson
Rating:
Money Blog: Top Stocks Blog - MSN Money
It was nice to finally hear from Sirius XM (SIRI) boss Mel Karmazin in Fortune Magazine. Karmazin had been too quiet lately while Sirius teetered close to bankruptcy and then got a last-minute reprieve in the form of big loans from Liberty Media.
Now, he's coming out and defending his company, making the case that there's a real business underneath all that financial drama. And if you just give Sirius a little more time, it'll show the world how profitable it can be. Sirius still has a crushing load of debt, but managed to win some short-term breathing room with Liberty's $530 million rescue (it also got extensions on another $400 million of debt due this year). And after the roller-coaster ride Sirius has been on, there's much in the interview to make investors feel better. Here are some of the highlights:
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Posted
Mar 18 2009, 03:57 AM
by
Douglas McIntyre
Rating:
Money Blog: Top Stocks Blog - MSN Money
The market rise of the last two weeks has been described as a “sucker” or a bear market rally. One means about the same as the other. The premise is that the long-term trend of the indexes is down, but once in awhile, investors will stir from their depressions to watch the dead cat bounce. In this case, the Dow is up 10% since March 9.
The last long market rally started in March of 2003. The DJIA was 7,740, and ran to almost 14,100 in October of 2007. An investor in an index fund doubled his money and did even better if dividends were factored in. No one calls the long leg up in the market a sucker rally, but it was for those who did not sell their stocks until early this month when the Dow dropped below 6,600. What defines a sucker rally is simply a matter of perspective, and, more importantly, when investors buy and sell. Someone with the fortitude or foresight to buy Citigroup (C) earlier this month at $1 would have had a return of two-and-a-half times in a matter of days. It is pointless to figure out what that would be on an annualized basis. Citi is not going to $5,000 in the next year, so doing the math doesn’t matter.
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Posted
Feb 18 2009, 03:14 AM
by
Bernhard Warner and Matthew Yeomans
Rating:
Money Blog: Top Stocks Blog - MSN Money
This post comes from partner site The Big Money.
Just another $21.6 billion should do it. That's the latest bailout figure General Motors (GM) and Chrysler came up with to keep their tottering operations alive.
General Motors is requesting the lion's share, seeking $16.6 billion from the federal government, bringing the sum total it has requested to $30 billion. BusinessWeek writes that GM says it needs the full $30 billion to weather the economic downturn. Even with a cash injection, it would be forced to "cut 47,000 jobs worldwide and shutter five more U.S. factories in a massive restructuring plan." But it believes it can reach profitability in two years and pay back the loans by 2017.
One small catch: The UAW must agree on the turnaround plan, the magazine writes. For GM, the scalps to go are some well-known models. Plans include phasing out the Saturn line by 2012 and reducing the number of Pontiac models, the New York Times writes. The number of brands will be halved, to four: Chevrolet, Cadillac, Buick and GMC.
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Posted
Feb 17 2009, 09:52 AM
by
Kim Peterson
Rating:
Money Blog: Top Stocks Blog - MSN Money
I'm not sure Sirius XM's (SIRI) new "savior" is going to keep the company out of bankruptcy. Yes, the satellite radio shop has temporary relief in the form of new loans to pay off its old loans, but the terms are steep and the future is still unclear.
Liberty Media will lend $530 million to Sirius, starting with an initial $280 million loan at a high 15% interest rate. In return, Sirius will give Liberty a 40% stake in the company. Seeking Alpha says shares will need to be diluted to give Liberty that much of a stake.
For now, the deal helps Sirius XM fend off two looming threats: bankruptcy, and a takeover threat from Charlie Ergen, the boss at rival Dish Network (DISH). And Liberty Media wins for getting such favorable loan terms and new partnership opportunities with Sirius.
But most of all, it gives Sirius boss Mel Karmazin some desperately needed time.
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Posted
Feb 17 2009, 03:13 AM
by
Bernhard Warner and Matthew Yeomans
Rating:
Money Blog: Top Stocks Blog - MSN Money
This post comes from partner site The Big Money.
It's crunch time for General Motors (GM). The automaker prepares to file the largest restructuring plan of its 100-year history, hoping to justify the $13.4 billion federal loan package it received in December, the New York Times reports. The 900-page road map to profitability crafted by GM will lead to more job cuts; the closure of more factories in North America; and the halving of its brands, with just Chevrolet, Cadillac, Buick, and GMC left standing. But these radical measures will be for naught, notes the NYT, if GM fails to persuade the United Automobile Workers union to agree to large cuts in retiree health care coverage.
Both GM and Chrysler (which also must submit restructuring plans today) are hinting at Chapter 11 filings "to frighten creditors and workers into discounting debt," writes BusinessWeek. That sets up a face off between the union and bondholders, with GM in the middle, says David Cole, chairman of the Center for Automotive Research in Ann Arbor, Mich. With negotiations between the carmakers and the government expected to run beyond the Tuesday deadline, the Obama administration
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Posted
Feb 16 2009, 06:16 AM
by
Bernhard Warner and Matthew Yeomans
Rating:
Money Blog: Top Stocks Blog - MSN Money
This post comes from partner site The Big Money.
There will be one less czar in Washington. The Wall Street Journal and New York Times lead off their business coverage on Monday with news that President Obama will drop "the idea of appointing a single, powerful 'car czar' to oversee the revamping of General Motors and Chrysler and will instead keep the politically delicate task in the hands" of Treasury Secretary Timothy Geithner and Chairman of the National Economic Council Lawrence Summers. A major deadline looms tomorrow for GM and Chrysler as they try to prove their creditworthiness to the Obama administration in their plea for billions more in federal loans. The newspapers says the decision to lend out what could be at least an additional $7 billion to the carmakers will now come down to Geithner and Summers. According to the WSJ, there has been much grousing in the auto industry over the delay in naming a car czar (or, in this case, scrapping the position altogether). "Without someone firmly in charge, the various stakeholders have not felt compelled to come to the bargaining table," the newspaper reported, citing sources.
As if Geithner didn't have enough pressure, you can now add the concerns of the G-7. A summit of the world's largest economies in Rome came to an end over the weekend, with finance chiefs urging Geithner to hurry up and fix the U.S. banking system, Bloomberg reports. Not only are the eyes of the world looking to the U.S. to stabilize its banking system, they're looking for a sensible plan to copy. "A concrete U.S. plan would have positive spillover effects on markets and economies elsewhere,” a chief economist at UniCredit MIB in London told the newswire. “They are also probably hoping Geithner unveils the magic formula, which they could then also adopt.”
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