Futures are red now does not look good ( from another board lets see how close they come to the numbers)
The price action in SIRI on Friday is easily explainable. First the MM acquired a massive number of shares that they will distribute at higher prices to make a profit. Note that there was no negative news on SIRI, unlike NFLX, so a rebound is in order.
Who is going to be buying...the same money managers who just sold. They never wanted to sell but the big decline forced them to sell and they will be buying to reposition themselves for the 3Q. I told you this was a strange business. The amateur shorts who sold in the downdraft at 1.50 are about to be trapped and will cover once they realize their stupidity. The smart shorts who sold in the high 1.60 will see their profit evaporating and cover and in short order we will be right back to 1.68/1.71. Order will be restored in SIRI land and no one will ever know what happened except me and I ain't telling anyone.
In the next two weeks the company may issue a press release on the 3Q that just ended and the stock will shoot up to 1.87/1.93 where the CBH will use their newly minted short shares to drive us back down to the low 1.70 and the game begins again.
On 8/3 we closed at 2.07. The next day we opened at 2.04. We will close that gap before 12/31/11. That only leaves those 36K options Jan options that were sold at 21. I think that is a story for another day.
The truth of the matter is that I am not supposed to be telling you any of this, so if two guys built like refrigerators show up and ask who told you this, tell them it was BM. At least that will eliminate one of the problems that plague this board.
Over the past six weeks you have seen alot of those hey how is that 1.49 working out for you. Quite well, thank you.
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