Sirius XM Holdings Inc (SIRI)

[PennyHeaven7]

Next week will ?? SIRI br approved for the RUSSELL INDEX. ???

The annual Russell Reconstitution is the most visible and most anticipated trading opportunity on Wall Street. On June 25, company’s that no longer qualify are removed as candidates such as Sirius XM potentially are added. The funds that track the Russell portfolios with over $4 TRILLION in assets, are then forced to buy the new additions. Short sellers cover in advance of the day, while traders buy in advance hoping for large gains.

Although the Russell Reconstitution is no guarantee that a stock will hold those gains or appreciate significantly afterwards, in the case of Sirius XM the trade can amount to the equivalent of a stock buyback program, because those shares are removed from the market and held in portfolios. There is a resulting supply and demand shift that reduces supply to the advantage of stockholders.

The problems in the equity market are certainly not helping Sirius XM’s cause, yet the company has wisely scheduled its annual meeting of stockholders on May 27, 2010, and could release news on that day to lend support to its cause. Unlike the NASDAQ requirements, Sirius only needs to close above that superficial one dollar mark on just one day…March, 28, 2010. Fourteen trading days to go….