Want Sirius XM Bonds? Take A Number! There can be no denying the fact that Wall Street is looking at Sirius XM Radio with new interest…Literally! Today’s $350 million bond offering was met with demand that would seem highly improbable even in today’s potentially inflationary environment.
Not only was the 11.25% interest rate far below the rumored expectation of 13%, the issue was increased from $350 million to $525.8 million. It was only months ago that the credit markets had frozen to a point that Sirius XM almost collapsed, as it was unable to find suitable refinancing options through traditional means. Today’s bond offering that will repay debt and lower interest payments sent a shock through the equity & credit markets.
I have no doubt that somewhat negatively biased “media” outlets such as Jim Cramer’s TheStreet.com are having a hard time swallowing on this news today. Just yesterday, one of their writers pretty much copied an article I wrote, put a negative spin on it and published it as his own as if he had some grand revelation 8 hours into the day. In fact, I do believe the author referred to the bond offering as “below junk.”
Of course, for those that don’t know, The Street.com has had a sell rating on Sirius since 2007, (even as Jim Cramer was on CNBC telling everyone they’d have a 5.00 stock after the merger). Most people wouldn’t notice but it sits there on my TD Ameritrade account under research reports taunting me daily. I know if I said to sell Sirius XM, my writers referred to it’s bonds as “below junk” and my boss went on TV and said it should not be a stock, I’d be a little concerned to say the least to see all of Wall Street waiting in line to invest in the company.
Position: Long SIRI
Nice job!
Brandon.
Nice article. Call them out every time.
If you look in “The Retail Investors Wall Street Dictionary”, look up “Braying Jackazz”, you’ll see a picture of JIMBO.
LONG SIRI!
THESTREET COM TSCM is being dropped from the Russell 3000 as well.
lack of value
Jim Cramer….I certainly changed my opinion of him after he said: “Sirius shouldn’t even be a stock”. I think he might have to rethink those words. He who laughs last…….you know the rest!
this is certainly good news and on top of better cash flow, lower interest and retiring short interest stock, they actually pay off some malone loans which gives them more independance
Cramer just spent the last 30 minutes preaching about “Changing your mind about a stock that you hate when the companies fundamentals change”. Let’s see if he serves himself a Sirius piece of humble pie.
he was talking about sirius without saying sirius i feel
like: slowly i turn step by step
I think JCramer lost his focus after MM took off. Seems to me he changed over the past few years. If he does turn around on SIRI so what. We have to do our own investigating when looking to buy into a company. Understand the product, understand the financials, give yourself time to look into what the future may hold. I’d like to know how much CBNC makes on commercial advertising since MM took off.
Cramer will be in an egotistical denial long after I am a millionaire… most likely in a white collar correctional facility.
Unless Jon Stewart on the Daily Show pushes for an investigation of the Cramer clown, there won’t be one. His last appearance on Stewarts pathetic show was a warning to him to play ball, and attack who his political buddies at GS want him to, but the rest are off limits. Cramer won’t end up in a real prison but he really has no freedom of speech so I am sure being muzzled the way he has been since Stewart dressed him down is worse than being in a orange jumpsuit for a loudmouth like Jimmy.
Cramer is a joke, and I have NO plans to sell my SIRI shares anytime in the near future, unless Cramer starts to talk nicely about the company. The second he decides SIRI is a STOCK, is the SECOND I run to my computer and SELL SELL SELL my shares.
Cramer didn’t just recommend Sirius in passing last year. He SCREAMED it’s praises EVERY FRIGGIN NIGHT for almost a year. Saying it’d go to $5 after the merger. How GREAT the product was. How much he LOVED it. How if combined, Sirius would be in EVERY car. On and On.
There is NO justifiable reason for his COMPLETE 180 after the merger. Even WITH the “ugly” deal Mel had to do to close it. To LOVE a product so much. To sing it’s praises the way he did just doesn’t make sense. SURELY he should have been upset about the deal, but to do such an about face and go from loving to hating the stock was ridiculous.
The fact that his staff was bashing the stock and company all thru Cramer’s PRAISING of the stock only adds fuel to the fire to the “conspiracy” theories.
Supposedly Cramer got death threats as a result of his 180 which only made him hate the stock more, and he went after it with a vengeance before COMPLETELY blacklisting the mentioning of Sirius on his show for a whole year. Of course his STREETdotCom site continued to bash the stock during Cramer’s blacklisting of Sirius on Mad Money.
Anyway, what I look forward to most is HOW Cramer is going to address Sirius’s apparent turnaround. He’ll have to if this uptrend continues. Will he eat humble pie and admit he was wrong? Or will he try to spin it to make it sound like he loved the stock all along. Knowing how Cramer likes to rewrite history so much to make himself look good, I am sure its the second.
I’d be SHOCKED if he makes another comment like he did the other week about how “Sirius shouldn’t even BE a stock!”
Cramer came out of his mother’s anus.
How can people watch him never mind listen to his opinions.
Just don’t watch him and call CNBC and complain about him.
Notice that he says he cannot buy a stock if he mentions it for a period of time,,well he fails to mention that his wife and others that know him can buy or sell the stock.