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An Audit Integrity study of accounting and corporate governance finds that Rite Aid (NYSE: RAD  ) , Sirius XM Radio (Nasdaq: SIRI  ) , and AMR (NYSE: AMR  ) are the three companies most likely to file for bankruptcy protection over the next 12 months, among those with market caps greater than $1 billion.

Well, just as being celebrated on the cover of Sports Illustrated or the latest installment in John Madden's football video-game series is the kiss of jinxed death, maybe being singled out on the naughty list can be nice.

American Airlines parent AMR soared nearly 20% on Thursday, after nabbing $2.9 billion in new financing and ramping up its capacity in a few markets. Shares of Rite Aid and Sirius XM have appreciated more than tenfold apiece since bottoming out in February.

The risks are real, naturally, but there's something to be said about contrarians who scoff at rearview mirrors and come to their own conclusions about what the future may bring.

Briefly in the news
And now let's take a quick look at some of the other stories that shaped our week.

  • Berkshire Hathaway (NYSE: BRK-A  ) (NYSE: BRK-B  ) CEO Warren Buffett is drawing the line. He believes the economy has "sort of plateaued at the bottom." Yes, Buffett is calling bottom, during the same week in which Federal Reserve Chairman Ben Bernanke claimed that the recession "was very likely over."
  • In a week of buyouts, there's at least one sellout. Yahoo! (Nasdaq: YHOO  ) is unloading its $150 million stake in Alibaba.com. This isn't a complete kiss-off, since Yahoo! still maintains an even meatier investment in Alibaba.com's parent company.
  • The bailout is getting a bailout. Citigroup (NYSE: C  ) is the latest TARP baby to propose ways to begin cashing out the government. Taxpayers with a 34% stake in the banking giant are unlikely to mind the exit strategy.  

Until next week, I remain,

Rick Munarriz

The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

Enter your email address below to find out what made Jobs so enraged!

The Fool owns shares of Berkshire Hathaway, which is a Motley Fool Stock Advisor recommendation and a Motley Fool Inside Value pick. Try any of our Foolish newsletter services free for 30 days.

Longtime Fool contributor Rick Munarriz recommends windshield wiper fluid when trying to look back. He owns no shares in any of the stocks in this story and is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.


Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On September 19, 2009, at 2:10 PM, SeanTesh wrote:

    What is going to happen to Citigroup Stocks?1 Going up or Even Lower>?

  • Report this Comment On September 19, 2009, at 2:12 PM, RAF22 wrote:

    For unbiased and accurate information about Sirius XM Radio, go to Satwaves.com and Seeking Alpha.

  • Report this Comment On September 19, 2009, at 9:38 PM, Fredlee009 wrote:

    Rick A., why are you reporting crap? You said yourself it was "ludicrious" that SiriusXM would go BK. Where is that line now? All i see is the spreading of BS news. Clear Channel might go Bk, not siriusxm. Nice try though.

  • Report this Comment On September 19, 2009, at 9:38 PM, Fredlee009 wrote:

    ZERO percent chance of it happening. Zero. Mathematically impossible.

  • Report this Comment On September 19, 2009, at 9:38 PM, Fredlee009 wrote:

    In the next year.

  • Report this Comment On September 19, 2009, at 9:50 PM, topsecret09 wrote:

    I have lived In Las Vegas for the last three years. I recently noticed that a brand new Rite Aid (built about a year ago) Is already closed. I was recently In Fresno California and visited a brand new Rite Aid (was opened just weeks before I got there} and I noticed that the store was not fully stocked,and they had a lot of products that people just would not buy. I am not sure exactly what Is going on,but something smells with this one... TS

  • Report this Comment On September 19, 2009, at 10:16 PM, jacobske wrote:

    Rick,

    You are one scrappy dude--LOL.

    Kip

  • Report this Comment On September 20, 2009, at 8:12 AM, spr0949 wrote:

    About 40% of the Sirius/XM debt crisis has been resolved and the remainder has been restructured so the deadline has been extended until 2013. This gives them ample time to resolve the debt. With the current quarter being expected to yield positive numbers and the company moving into profitability for the first time I do not see their debt load as a problem. Who is auditing "Audit Integrity"?

  • Report this Comment On September 20, 2009, at 10:03 AM, conwayguy2001x wrote:

    They only mention Sirius to get hits to their articles...no hits, no job and Sirius almost automatically brings in thousands of hits, both from shorts and longs looking for any bit of information to digest....Honestly, if Mel was more informative about what's going on, these guys would have alot less people who care what they say.

  • Report this Comment On September 20, 2009, at 11:34 AM, goforitrandy wrote:

    I'm no expert on stocks it just seems to me that SIRI is incredidle undervalued... They own satilite Radio with no competition anymore... They're also cutting costs and finding new distribution chanels that didn't exist 2 years ago like the iPhone and many other new portable and home devices that will appeal to millions of people... I know a lot of people think it's just an expensive luxury that Americans can't afford right now with this economy I disagree... I have made more money in 2009 than I have in over a decade... I know their are a lot of people who are suffering right now but the numbers are less than 10% out of work...

    besides SIRIUS XM is not for the massess it's for millions of people who want to listen to Sirius XM very unique and exclusive programing... Sirius could easily double their customer base with all the new things that they have already put in place... Heck if they just increased their cusomer base by 10% this stock would have a book value of $2 to $5 or more...

    And now that it looks like their tuning a corner into profitability in the 3rd and 4th Q of 2009 this stock can't help but soar above $1 and keep on going...

    I have made thousands of dollars this year from SIRI and I feel like I have a really good pulse on how this stock is performing and right now it's building up steam for it's next big run which will probably take the stock to $1 in the next 2 to 3 weeks...

    I have called the last several big moves several day's before SIRI made a big move and I'm telling everyone right now... Baring any huge pull back in the market SIRI will be making it's next big move in the next week or two... As soon as Siri breaks through the resistance at 70 cents it will take off on a 4 to 5 day run and probably hit a high of $1 for the ist time this year and then it will pull back into the .70 to .80 cent range while it builds up momentum for the next big run...

    Now I am and have been way too opptimistic about SIRI performance this year... I have to admit I don't get it... WHY? SIRI has not broken out and made a sirius move like a .50 cent or even a $1 gain like all the other stocks out there like Pier One .13 cent to $2.90... Or Blockbuster .30 cent to $1.50... or Rite Aid going from .40 cents to $2.35... or my favorite is Vonage going from .50 cents to $2.50 in two days...

    BUT for those of us who have been patient I feel 100% certain that SIRI will make a 50% to 100% move in the very near future probably in the next 30 days of less... Now I believe in Sirius XM so much that I broke my #1 rule and sold off all my stocks and let it all ride on SIRI with $25,000 of my hard earned dollars... I may look like a total FOOL for doing this but I just want everyone out their on the fence about SIRIUS to know that their are lot's people like me that feel this stock is without question gonna make a 50% to a 100% move from the current share price of

    .68 cents...

    However I hope I'm wrong, and SIRI takes off like a rocket and hits $2 to $3 by the end of the year like a lot of other stocks have already done this year... Besides look around, there are very few stocks of this magnitude that are trading under $1 today... So where do you think all those people who are looking for a cheap stock that's on the nasdaq or NYSE are gonna go... They have very few choices available to them right now an If your goal is like mine to have 10,000 shares or more of one stock that has the volitility to go up 50% to 100% in just a matter of

    days the choice is very simple... Buy SIRI stock right now before it goes over a $1 and you will pretty much gaarantee a 50% return on your money in a matter of days, or a few weeks at the most...

    I like where I'm sitting with 35,000 shares of SIRI and if your smart you will take a little risk and double down on some SIRI stock before it's too late... The day's of stocks being under $1 on the Nasdaq are numbered... And by the way Mel has already said he is not going to do any reverse stock split anytime soon... I don't think it is even gonna be considered until next year at the soonest and by that time SIRI will be trading well above $1... I know it may happen but I believe Mel is telling the truth and He really wants us die hard SIRI stock holders to make some sirius money before any reverse stock split ever takes place...

  • Report this Comment On September 20, 2009, at 11:47 AM, RAF22 wrote:

    Right on, goforitrandy! SIRI has shown an ability to shrug off unfavorable news planted repeatedly by "the bashers" and now it is on to continuing the process of discounting favorable developments that should benefit revenues far into the future. Your comments about anticipated price behavior for this stock are right on!

  • Report this Comment On September 20, 2009, at 12:15 PM, jamf92 wrote:

    You da man goforitrandy! I LOVE sirius and now that they are combined with XM I love them even more. I own SIRI and have been a long time subscriber. Just renewed my subscription for "lifetime" so I am not going anywhere, anytime soon.

  • Report this Comment On September 21, 2009, at 12:03 PM, JPS007 wrote:

    Something is keeping this stock down. Manipulation is still a foot.

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Related Tickers

5/25/2012 4:01 PM
RAD $1.31 Down -0.03 -2.24%
Rite Aid Corp CAPS Rating: *
SIRI $1.93 Down -0.06 -3.02%
Sirius XM Radio CAPS Rating: **
YHOO $15.36 Up +0.01 +0.07%
Yahoo! CAPS Rating: **
C $26.47 Down -0.19 -0.71%
Citigroup Inc CAPS Rating: ***
AAMRQ.PK $0.47 Up +0.01 +1.94%
AMR CORP DEL CAPS Rating: *
BRK-A $119500.00 Down -717.00 -0.60%
Berkshire Hathaway… CAPS Rating: ****
BRK-B $79.25 Down -0.55 -0.69%
Berkshire Hathaway CAPS Rating: *****

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