Sirius Stock

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.

Richard King said:

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.

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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!

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.

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...