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Re: Mt bigsky post# 26638

Tuesday, 10/02/2012 10:17:36 AM

Tuesday, October 02, 2012 10:17:36 AM

Post# of 30826
wow look at the difference between these two pieces... It's amazing...

MARKET TALK: Sirius a Buy as Focus Can Shift to Operations -BofA
Last update: 10/2/2012 8:26:23 AM
8:26 EDT - Bank of America Merrill Lynch says now is the time to buy into the satellite radio business, initiating Sirius XM Radio (SIRI) at buy as the change of control into Liberty Media (LMCA) seems more likely, allowing company to concentrate on providing premium content and a growing subscriber base. While losing CEO Mel Karmazin is a true risk, firm says SIRI's "best days are ahead, as the automobile sales recovery chugs along." Firm doesn't see LMCA keeping control of SIRI, expecting a quick exit through a tax efficient Reverse Morris Trust. BofA puts a $3.75 price target on the shares , which are up 2.9% premarket to $2.64.
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http://www.thestreet.com/story/11724686/1/why-its-time-to-sell-sirius-and-pandora.html?puc=yahoo&cm_ven=YAHOO Last week Liberty converted almost 50% of its preferred shares of Sirius to common and in so doing it was able to increase its Sirius stake to 49.5 percent while also owning roughly 32 percent of common shares. Though it remains unclear what this will mean for investors, it does signal that the stock will likely not appreciate from current levels. So the question is what is the benefit of holding at this point? Just ahead of Liberty's conversion, Gabelli & Co. last week downgraded Sirius to sell. They have become aware that the stock rose artificially as Liberty was buying shares on the open market as it increased its holdings from 40%.
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