By: Gino Lattarulo
When the Russel Index re-tooled and dropped Sirius from its index the stock went lower as predicted. My personal prediction was .35 cents. I really didn’t watch too closely during the next day or so but when I looked at the following closing price I was very surprised. Actually I said “what the…?? (insert expletive) ” Don’t get me wrong, I was delighted to see that Sirius was almost immediately back to its closing price from the day before. Speculation anyone? My first thought was that it was very odd for the price action to happen this way. After all, investors have been watching their beloved stock deteriorate for a number of years now. Events like this are historically bad for the near term price of any stock and as we all know, Siri has never needed much of a reason to dive bomb. So what happened? The questions are flying. Is it a suckers rally? Does this mean it is stable now? Why did it shoot up so soon? The truth is I have no idea. Maybe the news was already priced in to the point that it would have little effect on the stock. Maybe because of the known Russell event people felt they would be buying it at a discount if it went back to the 30’s. Personally I thought it was an almost certainty that after the immediate rebound we would see it fall again to settle in the 30’s, which is why I waited a week to write this article. Quite the opposite (so far) seems to be happening. Siri appears to be digging in its heels and grinding ahead a few cents at a time. Here are some of the things I like about what is happening.
Of all the speculation that is happening I have to start thinking that Siri is finally beginning to make some solid headway in the name of their brand. There is little doubt in my mind that it will breach the 1.00 mark. It is only a matter of when. As one of my fellow Satwaves authors said, the planets seem to be aligning for a perfect set up.
Disclosure: Long Siri, no positions in AAPL
EXACTLY. I knew it. So much for that recent article on here about how the Russell delisting DEMANDED that Sirius do a RS. I think it was Charles if I’m not mistaken.
Anyhoo. I don’t think we’ll need or even SEE a RS. I believe we’ll get way over a buck all on our own thank you very much. And dare I say sometime in the DISTANT future, Sirius will be in a position to BUY BACK shares.
In the meantime, this slow and steady march upward will pick up steam as more and more good news comes out, and more and more of the uncertainty that the shorts thrived on is removed.
Russell who??? LOL.
Gino,
Good stuff. I also happen to believe a buck is very close at hand.
Gino, “The AAPL IPhone app is a smashing success”. Can you sight your specific information about this? I and other shareholders would love to hear it. I’d rather not have to wait until the Q2 report. Thank you.
Gino
Nice read! Please keep us upto date with your analysis of Siri. Some of us do not have the time or knowledge to follow the stock 24/7.
thanks again
Yes as Jay Fish asked,what knowledge do you have about the IPhone app’s success? I’m hoping you mean NEW ‘paying subscribers not the free download success we all are aware of.Please inform’
thank you..
After a good night’s rest, I awoke this morning with a new worry – or rather a concern. I am still happy about Mel being kept on and the recent upturn in SiriusXm….HOWEVER….I had a terrible thought…..
What if Mel waits to do a 1 for 50 reverse split before he exercises his 120 million options????!!!
Sure, it’d be GREAT for him, but a HUGE SLAP in the face for longs. The ULTIMATE insult.
My question is would such a move even be legal? Could Mel be sued for doing such a thing after putting loyal shareholders thru hell only to take away most of their shares while giving himself millions of shares at todays cheap prices?
In my gut, I don’t see Mel doing this after all his talk about shareholder value. For him to break such a promise would surely result in a mass outrage that would create make Hartlieb’s look pale in comparison.
Anyway….just thinking. This is my last worry. Otherwise, I feel VERY confident about Sirius turning the corner now and us long suffering longs FINALLY seeing some daylight.
Normally, in a stock split the options contracts are automatically converted to their equivalent. So his exercise price would jump to 50 x .43. That’s my understanding.
I hope the moon is included in that planetary alignment.
When I get a quote from Google Finance or CNN why is it that the satellite launch is not mentioned? Isn’t this a major happening for SIRIUS? It appears that positive news is ignored. Is NAB bias still in play?
TallyHo: Yes, it probably is a big deal for Sirius and the shareholders but not to anyone outside of the Sirius circle.
TallyHo:
Like Jay said, outside of the niche group that comprises fans of satellite radio, interest in satellite radio and any news about it is of little significance to most of the population. Most people either know nothing at all about satellite radio, or they still believe that they went bankrupt. This proves to me that the marketing of this product/service has been a disaster.
Marketing? Does Sirius/XM have a marketing department? ..or should I say, any PR period!!