By Brandon Matthews
It appears that Sirius XM Radio (Nasdaq: SIRI) CEO, Mel Karmazin has pulled off another deal of the decade, and it appears that Sirius XM will not be required to execute its shareholder approved reverse split.
Satwaves has learned that the Securities and Exchange Commission on January 29, 2010 has approved a Nasdaq motion to extend compliance periods for listed companies that fall below its minimum bid standard, up to 360 days beyond the initial 180 day notice. The newly adopted regulation now provides a maximum 18 month period for select companies to regain compliance.
On August 17, 2009, The NASDAQ Stock Market LLC filed with the Securities and Exchange Commission, pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 and Rule 19b-4 thereunder, a proposed rule change to modify the length of certain compliance periods in Nasdaq’s continued listing requirements and to modify the time available for a company to provide a plan to regain compliance with certain listing requirements. The proposed rule change was published for comment in the Federal Register on September 8, 2009. The Commission received three comment letters on the proposal. On December 28, 2009 the Exchange filed a response to the comment letter. This order approves the proposed rule change.
The new rules completely overhaul the compliance listing standards and review, giving broad discretion to the Nasdaq in approving a company’s plan to regain compliance.
A company could only receive an extension up to this 18-month maximum length if: After reviewing the company’s compliance plan, Nasdaq staff granted the company the maximum 180-day period to regain compliance; the company failed to comply within the time allowed by staff and appealed to a Hearings Panel; and the Nasdaq Listing Council determined to call the matter for review, stay the company’s delisting, and, after reviewing the company’s compliance plan, provide the company with the maximum 360-day period from the date of the Staff Delisting Determination to regain compliance.
Sirius XM Radio CEO Mel Karmazin had stated that he was working closely with the Nasdaq and SEC to argue for a market cap exemption, and the new rules are certainly favorable to companies like Sirius XM Radio, which remains one of the Nasdaq’s most valuable properties. Although certain formalities must now be performed, the new rules will likely extend Sirius XM’s listing under the Nasdaq global markets until at least March of 2011. It is even more likely, that given the extra time the new rules allow, that the share price of Sirius XM Radio common stock will remove any delisting threat long before the potentially extended deadline.
The entire order can be viewed here.
Position: Long SIRI
Special Thanks To Ryan from Satwaves who discovered the report!
Brandon, Great news! Let’s watch this stock fly organically on it’s own merits! This should be a killer 10Q and CC! Keep up the good work and balanced rreporting.
….unbelievable!
Great MEL!
This report is in the face of those who doubted Karmazin. Its just another positive note, on this great company ready to explode!
I would never want to play poker with Mel. He knows what he is doing and holds his cards close. Long SIRI
Brandon…Great News!! I knew Mel would pull it off somehow!
How do you think the stock price will respond now that this news is out there? I think they attempt one last draw down and then its off to the races. Good work Brandon.
I dont see how anyone or anything could hold SIRI down now-I would not doubt if it trades over 1.00 this comimg week due to this HUGE positive news.
This is major psychological impediment removed from overhanging the markets; If “they attempt one more draw down” I would bet they will run into a wall of underlying support and demand.
Upside momentum should remain dominant and reinforced over the intermediate to longer term and this event – the extension of Nasdaq compliance – should cause the current pause for consolidation to be completed in an aggressively positive way.
No….if in fact this is true and SIRI stock does not react favorable, then an immediate criminal investigation would need to happen.
This has to be a positive catalyst for SIRI share price. Negative perceptions behind reverse splits (justified or unjustified) are completely out of the picture for arguably the long term and any reservations about loosing value post reverse split are gone.
Mel is slick, he had it planned all along. Go Sirius.
Thanks Mel!. I bought this stock when it was 1.60, invested my prime savings of 10K. I was completely lost hope when it went down to .05. Thanks again Mel for everything!. Looking forward to see great move and companies bright future.
so Brandon, this means your selling your stock you said it.
Amazing! If the mainstream media picks up on this it will be even more amazing.
Amazing Amazing Amazing. Mel is a magician. He jsut pulled the rabbit out of the hat. He is a freakin magician!
Great work, Brandon and Ryan – There’s an aroma of smoked bear in the air right now!
Sirius XM is in the early stages of a powerful recovery and rebound from the lows of last year and it is absolutely correct that this company should be given the time to grow into compliance organically – as seems highly likely over the next few weeks. This SEC Order effectively removes an artificial drag upon the share price of SIRI, as the prospect of a forced reverse split was overhanging market sentiment and enticing continual negative press and hype from the usual short selling band of cohorts – media and some institutions in collusion with these negative tactics. Now that the prospect of a forced reverse split has been removed, the dominant strength already exhibited by SIRI has been substantially reinforced and institutional and retail demand that might have been hesitant about investing in SIRI before this issue was resolved are more likely to come aboard without further delay. Those who hesitate are running the risk of substantial opportunity loss into the future, as intermediate and longer term price projections are for substantial gains from current levels.
Great work getting this out immediately, Brandon. Investors hate uncertainty and this removes a huge one! No one should ever doubt Mel…when he says he’s going to do something…you have to believe him…the man does what he says he will do. The fundamentals of this company are getting better and better the pps will grow organically just as Mel…folks hold on to your shares…don’t let the big boys grab them!
Whereas this is potentially good news, the fact still remains that a possible RS is STILL in affect until 6/30/10.
Brandon, has this been confirmed?
see the link provided in article
That might be the case but HIGHLY unlikely!!
A week ago Brandon was telling us how great a reverse split would be – Now he’s telling us
whew! no reverse split is great.
Can you spot the paid shill? LOL
ANK,
he only gave his opinion that he thought it would happen and why he thought it was best for the company and shareholders. I do know understand why that makes you think he is a shill.
Burnout,
I don’t think he is a paid shill. I AM CERTAIN.
Do you actually think Sirius does not pay him?
The only doubt I have is how long Satwaves and Brandon will leave up this or any post that is not cheerleading for SIRI stock.
Well said, burnout. Good to see and your wise posts here.
You bite! Watch Stock Shock, Pull your shorts off, and wash your mouth with Lye!
Brandon is a freaking hero, not a shill, Soppo!
Brandon Matthews speaks the truth. He states his case. Gives his reasoning and is not afraid to ruffle a few feathers. If circumstances change, I don’t expect him to “Go down with the ship”. He like any intelligent person should look at the facts and change his plan or assessment accordingly. This doesn’t make him a shill it shows his skill. Long SIRI
I don’t know why you people all give Mr. Sirius the thumbs down for stating the facts and trying to keep things real. While this may make the split unnecessary (and I hope it does) it does not change the fact, until the deadline we (the shareholders) approved passes the company could do a reverse at any time. Doesn’t anyone care about the facts or the truth here anymore?
The facts. How about mel saying no R/S unless it is to make the NASDAQ happy.
True and good point, Burn, but remember Mel said he will do a RS “only” to prevent delisting. Until he says anything otherwise, I for one, take him at his word and despite having the approval until June, I would suggest that if this ruling means what Brandon ssys then the probability of it hppening is minimal to less then 5% at best. Time to move on and focus on all the possitives that still exist for this terrific turnaround story that is SXM…just saying.
Great news for all qualified stocks that are listed on the Nasdaq that are currently listed for under a dollar.
Monday will be a good indicator of what would’ve happened had a r/s been enacted. If the stock rallies hard on Monday, that would’ve meant the share price would’ve tanked on r/s news. If the stock doesn’t react to this on Monday, that means there would most likely not have been a sell-off had they announced the r/s.
Mel said the RS would be a last resort, There is an extension granted what makes you think he would then do the RS Burnout? Mel said he would appeal to Nasdaq on the delisting requirements and it happened. Mel walks the walk
Joeboo, where did I say I thought he would? Did you not read my comments? All I said was the FACT is until the deadline passes it could happen. I don’t think it will unless it cannot be avoided but what I think does not change the facts.
Joeboo,
Mel ALSO said: “I see no future for satellite radio” just months before he was offered his position.
Mel ALSO said :Cash flow positive with 3 million subscribers- 8 million -10 million-
by the end of 2007 -by the end of 2008-
by 2009
Thank you Brandon,
As I always say…..
Never, absolutely Never…….
Bet against Mel….
:>)
mel is the fukkin man!
he gets things done!!! and will make us rich.
What the hell’s the big difference? Short extension, longer extension. they didn’t say it could stay listed under $1 like Karmazin wants.
I didn’t see an issue with the reverse spli.
But there are questios about Karmazin’s strategy, timing re shareholder votes, whatever.
Some people keep ignoring questions about manipulation. It wasn’t allowed to go over 90c was it. there are damn bigger questions than 180 vs 360. More answers please.
Everyone: Keep in mind, Mel and other senior executives at Sirius XM hold substantial option grants at prices below current levels. I assume they all recognize – as we do – that it is much easier for a stock to double from 1 to 2 than it is for a move from 10 to 20. Their interests are totally aligned with ours and I would bet my last dollar that they also want to avoid a reverse split, unless absolutely necessary – as Mel has stated on numerous occasions. Any further hype about a reverse split now – after the SEC ruling regarding a Nasdaq compliance extension – is just that: negative hype by those trying to hold back the upside tide that SIRI is now riding.
Now we all know why the stock rallied for last week and 1/2. This news was out to everyone on the inside, but all of us. I wouldn’t be surprised if we see a pullback before the week of the earnings.
SX, How about credit and analyst upgrades? Seems to me those actions had a lot more then a little to do with the rally in the sp…this news, if accurate can do nothing but add to demand since it eliminates a huge uncertainty…
I don’t get it. I read the order and this is not what I got from it. The March 15th deadline is still in effect. The difference is that the company has up to 45 days to file a compliance plan, instead of 15. IF they are given an extension, it can be up to another XX days up to a total of 18 months. This does not effect where we are right now.
I don’t understand how stating facts, like this post, gets an overall “thumbs down”.. Do you people all just want to hear what makes you fel better….??
I think Brandon may have spoke too soon if Egis is correct.
This is directly from the SEC Order:
As revised, the maximum amount of time that could be afforded to a
company that failed to meet the market value of listed securities or
market value of publicly held shares requirements would be 18
months.\11\
—————————————————————————
From the filing:
\61\ As noted, this maximum 18 month compliance time only exists
assuming every maximum compliance period is granted and an appeal
was called for review by Nasdaq’s Listing Council.
—————-
18 months is WITH all extensions and review periods exercised. Sirius would have to appeal the delisting, which it was my understanding that nobody thought Sirius would do.
Damn straight they will appeal IF they are not at $1. WOO HOOOOOOOO!!!!!!!
No matter how you slice it – you have to assume SIRI will be granted an extension until proven otherwise.
The Gov’t owes us for screwing us during the merger.
Brandon said it was too late to avoid a reverse split. Never too late. They’ll be no splitting of my shares thank you!
Man yahoo wont let me post the link to the good news about the no reverse split. They wont let me post anything with the words sirius in it . This giant news story is being suppressed for sure on all the yahoo boards so if you try to post on them be sure and skip a few spaces in the word sirius like this si r ius so you can . The news isnt any good if anyone doesnt see it so go post it somewhere important for the people to see!!!!!
I have been a trader of SIRI for years and got in from the start, sold when it hit $8+ and then sat out and waited. Came back in at .17 and have been holding since. I also did not vote for the RS thinking it would dilute the value and cause a fall in price. Glad to hear the RS is dead (well almost), and with this news, we should see great movement and huge shares traded.
Way to go MEL!!!
all that I really know is that my positions are at a lower cost point that both Mel & Malone. This being said, I could give a rat’s patootie what the heck is *really* going on. Okay, I care…to an extent…and I don’t *really* want a reverse split…but I definitely will not be stirred as easily…as say, the beginning of summer 09. ha ha. Hey Jim Cramer, I’m ready for you to start liking us again…ha ha
Whenever I read about either Sirius or XM I can’t help but get mad at the morons who run those companies. My argument lies in the fact that they have the ability to transmit a signal (radio, television, internet, phone) to tens of millions of people, and they can’t find a way to make money?! Idiots!
Stay tuned, Brendan – Your argument is about to get blown out of the water.
Brendan,
You are an idiot. Why even waste your time or ours with your reply?
This also shows how important Sirius is to the Nasdaq. With the volume of shares being traded just from this one stock alone is something of value that the Nasdaq does not want to de-list if they could prevent it.
This shows how great Mel is in taking a company out of the sewers of bankrupcy to one of the greatest stocks of the decade .Mel thanks to you this stock will perform on its own merit & will avoid this killer b/k that would decimate the stock.
Brandon, you’re unbelievable. When should we expect the apology for you saying the R/S was a CERTAINTY and those that believed otherwise were IDIOTS?
I’m waiting for that too…………
I’ve been BEGGING Brandon for MONTHS to use his “talents” to look at creative ways in which MEL could avoide the r/s. The door has been slammed in my face every time….
Well here is the deal. he was kinda right. It might have happened if the extension didn’t go through.
BUT I agree, this dude definitely comes off as a little condescending.
Bottom line is. We need good news to keep coming in. Howard resigning and a WORLD WIDE EXPANSION is next. $2.50 here we come and beyond.
Great news….but did I miss something? Started off pretty excited w/ the headline and the first paragraph, but then after reading the order and the article, Mel actually didn’t do anything.
Mel made no deal w/ Nasdaq, there is no specific agreement between the two. This is a general order for all companies.
The possibility of a r/s still exists. There are still MMs who let this run to 90+ and then were allowed to dump when they saw the call options skyrocket. Bosx still is doing some strange things and sirius is still below $1.
This ‘news’ may affect the share price, and I hope it does to the upside, but I fear this ‘extension’ is an ‘extension of manipulation’ by those who are controlling this share price.
Long for $2 and longer
ANKsHOCKEYMOM? Who’s paying you?
Brandon, great job.
Burnout, nice to see you.
Thanks Wolf! It’s not hard to see who the real shills most likely are. While Brandon’s positions on certain issues with the company change (because conditions and the imformation we have changes) at least we know what his position on the company is as a whole and why.
Hey, burnout? You kind of remind me of Brandon.
If this new “extension rule” can’t help a corp. like Sirius ,then why would they even bother to change the rule.
Merger news coming soon.
Reading the reactions of the doubters, I think they are not paying attention to the definitions of critical points along the time line: when you read the SEC document and footnote 11, do so knowing the distinction between a date of “notification of non-compliance” versus a date of “Staff Delisting Determination”. My interpretation is September 2009 for the non-compliance, then plus 180 days (6 months) brings us to March 15 2010 for the Determination of Delisting, which then means 360-days hence from March 15 2010 = March 15 2011. 6 months plus 360 days = 18 months. I also think people are reading “180″ days and “18″ months and convoluting both the number and unconsciously not translating days into total months.
This is just phase 1 of phase 2. It is correct that as of today siri is facing r/s issues. But with this rule change, an extension will more then likely be granted and then it will be up to siri in the future.
March 15th will no longer be an issue in the very near future.
Market Cap exemption may be next.
It will be interesting to see the trading of this stock today–Of course there will be no press release, mention of it on the Street, news, yahoo etc.
RAF, what formalities will have to be performed to stay in complience with the new ruling? Any ideas?
James – I am not a lawyer and I cannot answer your question specifically – but it is clear from the intent of the Order and Mel’s public comments regarding a desire to work toward an extension with Nasdaq that there is a convergence of interests leading to resolving this issue in favor of providing Sirius XM with the indicated extension of time. That seems to me to be the underlying message of the SEC Order – not only as it pertains to Sirius XM, but also to other companies facing the same circumstances.
I appreciate the timely response, it does clarify what was said. Thank you.
This was not Mel’s doing it is just how the economy is morons.
What a bunch of saps.
I apologize for being off-topic on this one. Someone on the forum mentioned Google trends as showing a 250% change in “Sirius Blackberry app” searches, which is outstanding. I think more importantly, on this same page it shows the “Skydock” as a “breakout,” meaning it has changed over 5000%. Just wanted to bring this to your attention.
Bottom line is. We need good news to keep coming in. Howard resigning and a WORLD WIDE EXPANSION is next. $2.50 here we come and beyond.
that’s what I am saying, Haward has been nothing but a source of bad news for Sirius XM. everytime the stock starts moving up he opens his mouth..aaaahhh I wanna quit..aaaahhh I want more attention, well please quit already man…
Now he needs to get the SEC off their corrupt behinds to do something about the legal thievery known as ’shorting’……….
What we need is an official letter from NASDAQ clearly stating an extension to SIRUS XM.
With that said, it seems likely to happen in the not to distant future. Its interesting that the latest news has not resulted in a larger run up. I would have expected a big run with fears of a R/S eleviated.
Mels strategy for more than a year is to run the company and let the SP sort itself out. eTrade shows the earnings report as happening on Feb 11th. If can add to the subscriber additions with other positive trends, I think news that will take us above the $1 mark.
its all over except the politics and the GS monipulation.
RAF, why is there still very big sells coming into the market for siri. We’re talking 5,6,7 million at one time, is this BOSX manipulation? Should this all end when they report on the 11th or is this another false earnings date by Etrade?
Looking at the indices the last slide of the day did start at 2:28. Was this slide in siri. stock just a normal sell as a market reaction or was it targeted on siri. itself?
Brandon, thanks for another great article, at the beginning I thought what the hell did Mel has to do with this, it was between NASDAQ and SEC…so why this headline. then I remembered the ‘headline only readers’ who might find the news good enough for them to buy some of Sirius XM shares.