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Sirius Stock

Discussion in 'Sirius XM General Discussion' started by VaJim, Aug 1, 2008.

  1. VaJim

    VaJim Godfather

    679
    5
    Jul 26, 2006
    Virginia...
    :confused: :confused: OK...so we have the merger...any ideas as to why Sirius stock remains in the toilet? XM has already been suspended.
     
  2. Richard King

    Richard King Hall Of Fame

    21,331
    1
    Mar 25, 2002
    I would guess that it's a lack of confidence in the viability of even the combined venture. :( Having several thousand shares myself, I am not pleased. Things may have been more promising if the combination could have been fast tracked rather than bled for over a year for other motives.
     
  3. VaJim

    VaJim Godfather

    679
    5
    Jul 26, 2006
    Virginia...
    I think you're right. Perhaps what we'll see is a slow increase in value much like the merger timeline. Early merger talk estimates had the 'new' Sirius stock trading somewhere around $8-10. Heck even that would only bring it to where it was 2 years ago.

    Thanks!;)
     
  4. Lee L

    Lee L Hall Of Fame

    3,134
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    Aug 15, 2002
    It is entirely possible that the street sees this merger as one that will not pay off in terms of profitability for a long time. I totally agree with that as they really have no clear path to reducing duplication of channels and will have to essentially run all the assets of the 2 companies in tandem for 5 plus years, all while expending R&D costs to develop and possibly produce new radios.
     
  5. Ken S

    Ken S RIP

    6,201
    0
    Feb 12, 2007
    On the same day as the merger Sirius announced they were selling a new round of stock at $1.50 a share. While it's not the same class of stock as the common shares you see listed it does tend to set a price for the market.

    Mel Karmazin has his work cut out for him...
     

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