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Their current ratio is a lot lower than .53 .
I could see that happening. He'll ask Mel, "give me one good reason to buy SIRI." Mel will give a long answer about it being the fastest growing radio company, the synergies from the merger and new radios. Cramer's head will explode and then he'll yell something crazy like, I believe in Mel and I believe in SIRI, and then hit the triple buy button like five times. LOL. And hopefully since it's during trading hours, the stock will spike 10%.
Citigroup - BUY - $6.50
Lehman - OVERWEIGHT - $2.10
JP Morgan - NEUTRAL - no price
S&P - BUY (****) - $2.00
I own a few thousand shares. I want the stock to go up. At the same time, I'm not blinded by the fact there are serious issues facing the company.
What good news? The earnings were basically worthless. They had already released partial earnings, and they are basically a different company now. The call was mostly positive, but there was nothing that would make the stock rise. I thought there were a couple of negatives from the call:
1. Depending on the credit markets, the debt maturing in 2009 could cause a big problem (either obscene interest rates or not being able to refinance).
2. They don't expect automakers to install interoperable receivers for three years.
3. To get the a la carte offering, you will need to buy a new receiver. I'm pretty sure this was already known, but with the economy the way it is, I don't see people stampeding to the store to buy them.
All of that coupled with the declining auto sales (which I thought Mel did an excellent job trying to explain away) doesn't paint a pretty picture at least short term.
http://siriusbuzz.com/
SiriusXm Shares Undergoing Name Change
August 6, 2008 (10:01 am) Brandon Matthews
You may have noticed that your SIRI shares are unavailable for trading at the current time. I just spoke with a representative of TD Ameritrade. According to TD Amertitrade’s Reorganization Department, they are waiting for the new SiriusXm shares to be delivered. Accordingly, they report that this could take anywhere from 5-7 days to complete, possibly longer.
As for a ticker change, they are not sure as the new shares have yet to be delivered.
I inquired as to how 4 million shares had already traded at the time of our conversation. After following up with another department, he explained that some new shares have begun to trade.
Scottrade reports that it can take from 2-7 days to begin trading again.
$1.52 AH
It's going to be red today, as XM shareholders sell the shares they received.
http://www.cnbc.com/id/25888263
Jul.28
7:06 PM ET
48 minutes ago
Satellite Radio Stocks Not Exactly Sky-High
Posted By:Tom Brennan
Topics:Mergers & Acquisitions | Stock Picks | Stock Market
Sectors:Media
Companies:XM Satellite Radio Holdings Inc. | Sirius Satellite Radio Inc.
You’d think that after an 18-month wait for FCC approval, the stocks of soon-to-be-combined Sirius and XM Satellite Radio would be higher.
Doesn’t the deal mean subscriber-acquisition costs will go down? Now that the two companies aren’t fighting over talent, won’t those monumental payouts for talent come to a halt? Aren’t sports fans more likely to sign up now that NFL and MLB games can be had through the same service? Why isn’t Wall Street reacting positively to these developments?
The problem here is that both firms, because they were forced to sit around waiting for their merger to be blessed, are heavily in debt. Together the companies should end up $3 billion in the red. Since neither Sirius nor XM are cash flow positive and aren’t yet in a position to pay down the debt, the common stock just doesn’t make sense as an investment.
Right now the bond bullies are in charge at Sirius and XM. And it’s these bondholders that will enjoy an upside in these two companies. So if you’re looking for a way to get in on the action, Cramer recommended you become a bond bully, too.
Today, XM announced a $550 million offering for senior subordinate notes due in 2014 that are exchangeable into Sirius common stock. Granted, we don’t yet know the coupon, or the interest to be paid, or the rate of exchange into Sirius’ stock, but this is still a better play on the merger than buying common stock, Cramer said.
According to the International Finance Review – a respected judge of these matters, Cramer said – the coupon will be between 6% and 6.5%, and the conversion premium will be between 20% and 30%. That means the notes will be 20% to 30% more expensive when they’re issued than the price of Sirius’ stock. So what you get is a nice 6% to 6.5% yield while you wait for Sirius’ stock to climb 20% to 30%, at which point you can sell the stock for a profit. Get it? There’s upside if the common stock works but no downside if SIRI does nothing. In the meantime, you enjoy the coupon payments until 2014.
The other possible strategy is getting in on XM’s 10% convertible bonds due in 2009. Originally the payout was 1.75%, but XM upped that number to 10% so that holders wouldn’t come looking for there money once the merger happened. (This and another similar bond offering, for an even bigger percentage payout, are a big part of the company’s debt.) If you can get your hands on these 10% bonds, Cramer recommends you buy some.
http://siriusbuzz.com/fcc-puts-merger-in-writing.php
The FCC has finally put the merger between Sirius and XM into writing. The documents, made public after 4:00 PM on July 28th outline the regulatory approval of the merger. Four of the five commissioners also offered published opinions on the vote.
This official document, the lack of any action by the National Association of Broadcasters, and what should be the final touches on financing issues should enable Sirius and XM to consummate the merger in the next few hours. When this happens, XM shares will no longer exist.
FCC PRESS RELEASE
On July 25, 2008, the Commission voted to approve the application of Sirius Satellite Radio Inc. (“Sirius”) and XM Satellite Radio Holdings Inc. (“XM”; jointly, the “Applicants”) to transfer control of the licenses and authorizations held by Sirius and XM and their subsidiaries for the provision of satellite digital audio radio service (or “SDARS”) in the United States. The Commission found that grant of the application, with the voluntary commitments made by the Applicants and other conditions, is in the public interest. The transaction will benefit consumers by making available to them a wider array of programming choices at various price points and by affording them greater choice and control over the programming to which they subscribe.
Highlights of the Commission’s action are noted below, followed by details concerning the grant of the application and the separate resolution of certain enforcement matters.
• After reviewing the empirical data available as part of its competitive analysis, the Commission determined there was insufficient evidence in the record to predict the likelihood of anticompetitive harms. It therefore evaluated the application under “worst-case” assumptions, i.e., that the relevant market is limited to SDARS. This approach permitted the Commission to protect consumers from potential adverse effects of the transaction while also allowing the Commission to balance potential harms against potential public interest benefits. The Commission concluded that the merger, absent the Applicants’ voluntary commitments and other conditions, would result in potential harms. With those commitments and conditions to mitigate the harms, however, the Commission found the transaction to be in the public interest. All of the voluntary commitments must continue in effect at least three years after consummation of the merger.
• The Commission accepted the Applicants’ voluntary commitments to:
- Cap prices for 36 months after consummation of the transaction, subject to certain cost pass-throughs after one year. In addition, six months prior to the end of commitment period, the Commission will seek public comment on whether the cap continues to be necessary in the public interest and will determine whether it should be extended, removed, or modified. The merger approval is conditioned on the Commission’s ability to modify or extend the price cap beyond the three-year commitment period.
Offer to consumers, within three months of consummation of the transaction, the ability to receive a number of new programming packages, including the ability to select programming on an a la carte basis.
- Make available 4 percent of its capacity for use by certain Qualified Entities, and an additional 4 percent of capacity for the delivery of noncommercial educational or informational (“NCE”) programming, which will enhance the diversity of programming available to consumers.
- Offer interoperable receivers in the “retail after-market,” i.e., receivers available at retail outlets for installation in consumers’ automobiles or homes, within nine months of consummation of the merger.
- Refrain from entering into any agreement that would grant an equipment manufacturer an exclusive right to manufacture, market, and sell SDARS receivers. Applicants also commit to refrain from barring any manufacturer from including in any receiver non-interfering hybrid digital terrestrial radio functionality, iPod compatibility, or other audio technology. In addition, Applicants commit to make available the intellectual property needed to allow any device manufacturer to develop equipment that can deliver SDARS.
- File the applications needed to provide Sirius satellite service to Puerto Rico via terrestrial repeaters within three months of the consummation of the merger.
• Although the Commission found it unnecessary to impose a condition requiring the inclusion of hybrid digital radio technology in SDARS receivers, it recognized that important questions have been raised about hybrid digital radio that warrant further examination in a separate proceeding. The Commission therefore committed to initiating a notice of inquiry within 30 days after adoption of the merger order to gather additional information on the issues.
• The Commission reiterated that SDARS licensees are already prohibited, independent of the merger, from using terrestrial repeaters to distribute local content—including both programming and advertising—that is distinct from that provided to subscribers nationwide via satellite.
• The Commission prohibited the merged entity from entering into agreements that would bar any terrestrial radio station from broadcasting live local sporting events.
• Concurrent with grant of the application, the Commission repealed the prohibition on the merger of the two SDARS service providers as set forth in the 1997 SDARS Report and Order. For the same reasons that it approved the merger, the Commission concluded that repeal of the rule prohibiting the merger will, on balance, serve the public interest.
• In separate actions on July 25, 2008, the Commission approved Consent Decrees between it and each of the Applicants. The Consent Decrees terminated the Commission’s investigations into the Applicants’ compliance with the FCC regulations governing FM modulators and terrestrial repeaters. They provide that XM and Sirius will voluntarily contribute approximately $17.4 million and $2.2 million, respectively, to the U.S. Treasury and take additional remedial measures.
Action by the Commission, July 25, 2008, by Memorandum Opinion and Order and Report and Order (MB Docket No. 07-57, FCC 08-178). Commissioners Copps and Adelstein dissenting
No problem. I'm sure the SEC does drag their feet in some cases, especially with smaller companies.
I know the IRS does. The company I work for is an S&P 500 company and we've had an auditor from the IRS in our office for the last four years. The funniest part is their audit has been done for about six months. I'm not really sure why she is still there.
Companies announce the end of investigations all the time, here are five of them:
http://www.bizjournals.com/sanjose/stories/2007/11/05/daily59.html?ana=from_rss
http://www.reuters.com/article/idUSN1622726620070316
http://www.greentechmedia.com/articles/sec-ends-investigation-of-ldk-766.html
http://www.streetinsider.com/Corporate+News/Footstar+Inc.+(FTAR)+Says+SEC+Ends+Investigation/1559664.html
http://sev.prnewswire.com/construction-building/20080221/CLTH02521022008-1.html
Or you can search yourself by typing in "SEC investigation ended"
http://biz.yahoo.com/rb/080503/microsoft_yahoo.html
Microsoft withdraws offer for Yahoo
Saturday May 3, 9:33 pm ET
By Anupreeta Das
SAN FRANCISCO (Reuters) - Microsoft Corp (NasdaqGS:MSFT - News) withdrew its offer for Yahoo Inc (NasdaqGS:YHOO - News) on Saturday as negotiations fell through on price, even after the software giant raised its bid by about $5 billion to $47.5 billion.
Microsoft Chief Executive Steve Ballmer said his company increased its offer to $33 per share, from the $31 per share cash-and-stock bid that it initially made on January 31. But Yahoo was looking for $37 a share, Ballmer said.
"Despite our best efforts, including raising our bid by roughly $5 billion, Yahoo has not moved toward accepting our offer," Ballmer said in a statement.
"After careful consideration, we believe the economics demanded by Yahoo do not make sense for us, and it is in the best interests of Microsoft stockholders, employees and other stakeholders to withdraw our proposal," said Ballmer.
Yahoo was not immediately available for comment.
Laura Martin, a senior analyst at Soleil Securities, said Yahoo was demanding too high a price and she expected its shares to fall $8 on Monday when trading resumes on the Nasdaq. The shares closed up nearly 7 percent at $28.67 on Friday on hopes of an agreement between Microsoft and Yahoo.
"The Yahoo guys want too much money for their company. We think $33 a share is fair in the context of the weakening economic environment and adverse advertising trends," Martin said, who has a "hold" rating on Yahoo shares.
"I think you'll see a number of shareholder lawsuits on Monday. They've prioritized employees over shareholders in the hopes that someday they can create more than $8 billion of value, even if they have no track record of doing so," she said.
Yahoo had previously refused to enter formal negotiations with Microsoft, saying the initial price it made public in February did not properly value Yahoo's search and display advertising technology, or its overseas holdings.
Yahoo has also courted a possible deal with Time Warner Inc's (NYSE:TWX - News) AOL Internet division and a search advertising partnership with Google Inc (NasdaqGS:GOOG - News).
In a letter to Yahoo Chief Executive Jerry Yang, Ballmer said he was concerned such plans would hurt Yahoo's own search and display advertising strategies, and impair its ability to retain talented engineers.
"We regard with particular concern your apparent planning to respond to a "hostile" bid by pursuing a new arrangement that would involve or lead to the outsourcing to Google of key paid Internet search terms offered by Yahoo today," he said.
"In our view, such an arrangement with the dominant search provider would make an acquisition of Yahoo undesirable to us," Ballmer said in his letter, made public on Saturday.
Microsoft wants to buy Yahoo to gain a stronger foothold in its battle with Web search leader Google, which is rapidly expanding into the software maker's own turf with new Web-based applications.
Yahoo's advisers had initially said it would not negotiate with Microsoft for anything less than $40 a share, a person familiar with Microsoft's thinking said. But amid threats by Microsoft to launch a hostile takeover, Yahoo CEO Jerry Yang suggested a price of $38 a share, the person said.
On Saturday, Yang and Yahoo co-founder David Filo met Ballmer and Microsoft's Platforms & Services Division President Kevin Johnson in Seattle, where they communicated that Yahoo's board was willing to cut a deal at $37 a share, although the two co-founders remained committed to a dollar more per share, the source said.
http://www.alleyinsider.com/2008/01/live-sirius-ceo-mel-karmazin-at-citi-conference.html
Live Notes: Sirius (SIRI) CEO Mel Karmazin At Citi Conference
Michael Learmonth | January 8, 2008 7:06 PM
Awaiting the start of Sirius Satellite Radio (SIRI) CEO Mel Karmazin's talk to Citibank's Global Entertainment, Media and Telecommunications Conference, scheduled to start at 7:10 ET.
Citi intro notes SIRI surpassed 8.3 million subs during Q4, exceeding Citi's estimates.
7:15 pm: First question: What's the status of the merger and how fast can you close the deal if it is approved:
Karmazin's answer: "I can tell you there is no decision at the Department of Justice. Timing: I have no idea. I'm not going to give it a guess. This is a deal is ripe to be granted and we should be able to close. We will probably close the evening we get FCC approval. We have been waiting so long we are ready to close."
More from Karmazin on the process: The Department of Justice traditionally gets to review media mergers first, then the Federal Communications Commission. The 180-day (FCC) clock has been exceeded, but the DOJ doesn't have to rush because they know the merger can't go ahead until the FCC rules. The whole thing could end up in court, but Karmazin says he's optimistic this won't be the outcome.
As FCC chairman Kevin Martin said today, the FCC doesn't have to go second with its review, but it customarily does, and will in the SIRI-XMSR case.
Karmazin notes that DOJ investigators have spoken to talent, OEM partners, retailers and the labels in an incredibly exhaustive review process. "I remain very optimistic that the American people are better with consolidation--the fact that the National Association of Broadcasters has spent so much money to try and stop this merger clearly shows we are a competitor to them, and it clearly shows the market is broad," he says.
7:24 pm: If deal isn't approved are you prepared to go to court to get it approved?
"We hope the DOJ gives us a fair shot. if they decided to stop the merger they would go to court to stop us from closing. we woud rather them approve it, but if they dont we would at least like to ahv our day in court. we we think is unfair is they do nothing and continue to stretch it out."
7:26 pm: On post-merger synergies: "I can tell you that it is in the hundreds of millions of dollars; the value of the efficiencies are greater than the market cap of one of the two companies," Karmazin said.
7:30 pm: Asked whether he would revisit the equity markets if the merger isn't approved. Karmazin says revenue is growing dramatically, while costs are growing less dramatically. He says he would be very reluctant to tap equity markets. He hasn't tapped the markets since he became CEO in 2004. Says operating cost is $1.2 billion and revenue of more than $600 million in 2007.
7:32 pm: Karmazin is in sales mode, and Citi analyst isn't slowing him down. Says he loves the business, of course, that both the OEM and retail channels are strong. Says SIRI would add 6m subs in the next three years just from new car activations alone.
7:34 pm: First audience question: The talent deals have been generous. Is there an opportunity to revisit those deals?
K: "I think we are smarter today. When some of these deals were done Sirius didn't have any subscribers. The earlier deals were done without much knowledge about what listeners want. When the next cycle comes we will know more."
"What is going to make us a winner is that we have the best radio on radio. I am betting that radio is going to continue to be a business. We are going to be a successful radio company and our content is going to drive it. The Howard Stern deal--and I didn't do it, I walked into the company after it was done--I will tell you it more than pays for itself."
7:40 pm: Assuming there is no merger, at what point do you have four straight quarters of positive cash flow?
K: "Because of the merger we have not provided guidance. I think I have given some hints. We have a great deal of leverage in our business. Take the top line revenue growing at double digits. Each year you will see we will come closer and closer to free cash flow positive. Our sub acquisition costs are going down. I came to this business to make it profitable, not to spend money on content."
7:45 pm: With the improvement of in-car technology you will face competition from HD radio , ipods and Internet radio. How do you keep competitive?
K: "Can I take your question to the DOJ? The time people spend listening to the radio is in the car. They thought cell phones would compete with car radio, and 8-track tapes. I think it comes down to the content. if you take look at our content--there is nothing on the Internet or on terrestrial radio that would compare."
7: 50 pm: A question about satellite radio royalties. Karmazin says satellite radio got off a lot easier than most had expected. He says don't expect Congress to support royalties for terrestrial radio (as the music labels and the RIAA want) because it would be terribly unpopular in an election year.
7:54 pm: The interview wraps. Few crowd questions and very general queries from the Citi moderator. Karmazin basically gave his sales pitch. That's his strong suit, but we've heard it already.
Memo To Fidgety Sirius (SIRI) & XMSR Traders: Relax
Michael Learmonth | December 13, 2007 10:44 AM
That letter yesterday? Just a little Congressional chest-thumping. No reason to doubt the Justice Department is about to sail the merger of Sirius Satellite Radio and XM Satellite Radio, and send it to the FCC. On Wednesday, investors stormed out of both stocks (both down more than 10% in an hour) after Rep. John Conyers (D-Mich) and Rep. Steve Cabot (D-Ohio) made public a letter to Attorney General Michael B. Mukasey saying they were "dismayed to learn" of DOJ's imminent sign-off.
But shares rebounded in premarket trading today after Stifel, Nicolaus & Co. analyst and former FCC staffer Blair Levin reminded everyone that while as chairman of the antitrust task force, Conyers can hold hearings, but he has no direct say over whether the DOJ approves the merger or not. "It's possible the Department of Justice will still try to block the deal and that there's been some sort of leak, but we don't believe the reported letter ... means there is a greater chance of DOJ opposition," Levin said in a client note, noting a decision could come "any day." Levin kept his "hold" on XM (XMSR) and "buy" rating on Sirius (SIRI).
We still think the merger passes, crushing the short-sellers who are gambling that Sirius crashes and burns.
http://www.alleyinsider.com/2007/12/memo-to-fidgety-sirius-siri-xmsr-traders-relax.html
Actually, the best part of that section was this gem:
At this time, the Company cannot determine whether or not this venture will be successful in its current form.
No the new 10k told me:
The joint venture, No Mas Cables de Mexico, SA de CV provides coverage to approximately 8,000 housing units, but penetration of the service has been lower than expected. With our partners we are exploring how to increase market penetration and which other markets would benefit from the services offered.
Apparently there has been no progress since the PR they put out on 7/9/07.
The aggregate market value of the shares held by non-affiliates at December 4, 2007, was $13,413,717
Was never updated from previous 10k, should be $14,691,214
They are not even close to 200,000.
There doesn't appear to be anything new in this filing, with the exception of the NMC paragraph.
Looks like December 18th is going to be the day...
http://www.alleyinsider.com/2007/11/fccs-martin-revives-comcast-rule.html
FCC chairman Kevin Martin got shut down Tuesday, but that hasn't stopped him from trying to clamp down on cable. This time, he's proposing the FCC adopt a 30% national cap on the size of a cable TV system--a rule known as the Comcast Rule because its practical effect would be to keep Comcast, the only system close to that threshold, from expanding. The feds have long tried to enshrine this cap in law, but it was struck down in federal court six years ago.
Mind you, Comcast (CMCSA) is nowhere near controlling 30% of pay-TV subscribers -- that's not what the proposed rule is about. It's about the reach of Comcast systems, or "homes passed." Comcast systems "pass" about 30% of American homes, so the rule would keep the company from buying more systems.
Also on tap for the FCC's next meeting on Dec. 18 is a proposal to grant Sam Zell a waiver from FCC rules that would allow him to complete his $8.2 billion buyout of Tribune Co. Tribune (TRB) owns radio and TV stations and a newspaper in five separate markets, a violation of current FCC cross-ownership rules. But Martin wants to give Zell a pass while he works on a permanent loosening of those restrictions, a process which is likely to be tied up in the courts for quite some time.
It will be a jam-packed meeting: FCC will plans to rule on SIRI-XMSR that day.
So you agree that the PR was misleading when it says Sanswire's scheduled flight testing? You just said the testing wasn't the 2A, and Sanswire doesn't have any other airship, so it must be misleading. We also know GTEM only has 7 employees, so how could Sanswire be testing anything?
How do you obviously know they are conducting testing of the 2A?
This isn't Sanswire 2A, you must have missed this part of the PR:
The SAS-51 is a result of long term airship development initiatives undertaken by TAO and its predecessors, working with the University of Stuttgart.
They are PRing the start of testing for an airship they not only didn't develop, they don't even own.
Also, I noticed there is some significant language changes between the first Tao PR and the PR released yesterday.
Yes, but there are many references to 2007 that you would find interesting.
When has the company previously settled a debt with shares and what were the terms?
Well, you can start with growing list of debtors suing GTEM for payment. And you can read the 10-K just released.
He can't be too strapped for cash if he's flying to LA. I give you credit though for spinning GTEM's CONFIRMED cash problems into Joe's RUMORED cash problems.
If you could explain why Joe would ask GTEM for cash, when everyone knows they don't have any, that would be good.
I thought so too. I thought he said it would either go to $5 on approval or $2.50 on disapproval.
You apparently missed the part where he SELLS them for CASH.
It's pretty simple why Joe wants shares. GTEM has no cash. If Joe gets shares, he can sell the shares for cash. Why would he ask GTEM for cash when he knows they don't have any?
$2,778,000 of those R&D expenses is the cost of the Sanswire assets, which leaves $260,085 in true R&D expenses.
Outstanding shares = 127,749,688
# of employees = 7
What networks in Mexico, Brazil and the Philippines are you talking about?
Jetmek, the originally reported revenues were $28m, they were restated to $11m.
Well, given they had nowhere else to house the Strat, I wouldn't get too excited. I'm sure if they do come to an agreement, it will only be a matter of time before they default on it, much like some of their other agreements.
I doubt that info came from Sprint's board. It most likely came from whatever recruiter they are using to find a new CEO.
I have a hard time believing it's not faster than "up to 10 times faster than dial up" that the Hotzone is pumping out.
How would we know if Huff was posting? You could be Huff, I could be Huff, how would we know? And other than Vern, how do you know there are ex-employees posting? You don't, you are speculating.
Why would having stock help stave off bankruptcy? They would need to find someone willing to buying it. If things are going so good, why isn't Peralta or VPN buying stock hand over fist?
Sales $1,080,000 100%
COS $1,040,600 96.4%
GM $39,400 3.6%