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Sirius XM Slips Off the Dollar Menu

By Rick Aristotle Munarriz | More Articles
March 3, 2010 | Comments (29)

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Sirius XM Radio (Nasdaq: SIRI  ) was so close to shaking Nasdaq off its back.

Facing exchange delisting if it couldn't close at or above the $1 mark for 10 consecutive trading days, the satellite radio company's streak of trading to the left of the decimal ended after eight trading days this week.

This doesn't mean that Sirius XM will be banished to the pink sheets. It can, and no doubt will, appeal the decision. A successful extension there will buy it six more months. It also has a reverse split it can turn to, though CEO Mel Karmazin didn't seem enamored with that idea during last week's conference call.

It doesn't matter that priceline.com (Nasdaq: PCLN  ) , Steak n Shake (NYSE: SNS  ) , and Coeur d'Alene Mines (NYSE: CDE  ) have honorably executed reverse splits and lived to tell about it. There is still a stigma to reverse splits that Karmazin wants to avoid.

"It's possible we will requalify under the Nasdaq continued listing criteria with 10 consecutive days over $1," Karmazin explained while there was still hope to stretch out the company's dollar-menu streak. "If that were to happen, we would obviously not pursue a reverse stock split."

Obviously?

Even if Sirius XM had managed to stretch its steak to 10 straight trading days above the buck, this is still a company with too many shares outstanding. Between the fully diluted common stock and Liberty Capital's (Nasdaq: LCAPA  ) 40% stake, there's the equivalent of 6.5 billion Sirius XM shares.

There is no value difference between 650 million shares at $10 or 6.5 billion shares at $1, but the move would attract greater institutional ownership and coverage from firms that avoid low-priced stocks.

Now that Sirius XM doesn't have a chance to be in compliance by mid-March, the ball is in the exchange's court. I've said it before, but I can't see Nasdaq OMX Group (Nasdaq: NDAQ  ) booting one of its most actively traded stocks. It will grant it the extension, then come up with something else in six months if Sirius XM isn't in compliance.

Instituting a minimum market cap regardless of share price for compliance would probably be the easiest exchange fix. Then again, nothing is easy with the exchanges these days.

Will Nasdaq delist Sirius XM this year? Share your thoughts in the comment box below.

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Nasdaq OMX Group is a Motley Fool Inside Value recommendation. priceline.com is a Motley Fool Stock Advisor choice. Motley Fool Options has recommended a write covered calls position on Nasdaq OMX Group. Try any of our Foolish newsletters today, free for 30 days.

Longtime Fool contributor Rick Munarriz is a subscriber to both Sirius and XM. He does not own shares in any of the stocks in this article. He is also a member of the Rule Breakers analytical team, seeking out the next great growth stock early in its defiance. The Fool has a disclosure policy.


Comments from our Foolish Readers

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  • Report this Comment On March 03, 2010, at 12:30 PM, SIRIDoom wrote:

    SIRI is working all just as planned.

    After two years of tracking SIRI. I have recovered and learned the dastardly corruption of SIRI. This is the example stock for the new mafia. Yes, the banker elite new mafia. Many stocks are now being used to milk the public of all its wealth. However, SIRI is a retail only trade, bared by most ETFs with rules about trading less than 5.00 a share. As a retail only stock, Mel KarmaCrook and Goldman Sachs have reaped back ended profit in manipulation and all without a fight from ETF heavy hitters with power to fight with law and politics. The small investor has taken endless hits from mysterious happenings and requested investigations but never has anything been done to stop the corruption.

    But, with SIRI, you can gamble if you know the game plan of CarmaCrook and Goldman. You must track the stock and all announcements back to before the merger and all the announcements KarmaCook made about the original plan to rev-split. Know the history of other corrupted stock like Cox Cable. Any stock that the company has abused the stock holder but ended with a few wealthy owners is worth a study for true gambler looking to put money into SIRI.

    Be aware of the controlled media. As we have seen on Seeking Alpha, hundreds of paid bloggers attacked me for posting the truth of SIRI. They argued endlessly the a t REV-SPLIT would never happen. But, now that CarmaCrook has made it all look good and covered him self from lawsuits from the planned re-split, Seeking Alpha paid GooRoos have changed to a new tune. Now, Seeking Alpha paid GooRoos want us to believe that a rev-split is good. They will never say they were wrong. But, they will lead you to sink money into SIRI so Goldman can take another 30 percent when the rev-split is done.

    What can you expect from a company the sued itself? Yes KarmaCrook hired a law firm to sue for damages and get an settlement agreement to keep other stock holders from suing. But, that is an old story that Seeking Alph paid bloggers will spend hours prevent you from hearing again.

    WHAT IS NEXT?

    We had the run up and knock down. Looked good for a jury. Yah right...

    Howard Stern is going to sign again. On that up tick KarmaCrook is going to REV-SPLIT...HE need not give any warning. He has all the permissions he needs. It is a done deal. However, this could happen on any good news uptick. SIRI and Goldman have covered their collecting butts and made the effort look good. KarmaCook wants an 18 for 1 rev-split. It is his current master plan.

    I hope KarmaCook gets it done soon. I am waiting to join Goldman Sachs off shore companies and short the bejeebers out of the split. We can all make money on these CROOKS when we learn the game they play…

  • Report this Comment On March 03, 2010, at 12:37 PM, SIRIDoom wrote:

    I am waiting to join Goldman Sachs off shore companies and short the bejeebers out of the split. We can all make money on these CROOKS when we learn the game they play…

  • Report this Comment On March 03, 2010, at 12:54 PM, Cool700 wrote:

    The problem with the above mentioned reverse split is If it is not done by June the shareholders would have to vote again to approve it. That expires in June.

    I also believe a reverse split is not needed! Many companies trade in the $20 to $30 dollar range with 7 times the shares SIRI has.

    Why reverse split and give shorts more money because they will be shorting it at that point with billions of dollars. A stock trades at a certain PPS because it is what folks are willing to pay for it. Many stocks with hardly no shares outstanding trade for $5.00 per share or less!

    Besides if SIRI does a reverse split it makes it easy to be taken over and for some morons to run the satellite radio channels like Clear Channel runs it's AM/FM stations......NO THANK YOU!

  • Report this Comment On March 03, 2010, at 1:10 PM, SIRIDoom wrote:

    Amen - Jun is my current target prediction.

    AS I SAID "done deal. However, this could happen on any good news uptick."

    You got my point. Just short the split. Goldman and KarmaCrook Off Shore Companies are going to be shorting. They are drewling over the prospects.

    But, a new vote is no problem for company like SIRI that controls the majority shares. We have seen twice this already.

    If not Jun, they will just continue the high speed trade manipulation and milk the gamblers for a few more months...

    The problem is much much bigger than just SIRI...

  • Report this Comment On March 03, 2010, at 1:47 PM, BigNews wrote:

    I'm happy I started investing in Sirius back in 2005 because it has opened my eyes to the blatant manipulation on Wall Street. Take the loss and GET OUT OF SIRIUS NOW - THE LONGER YOU THROW YOUR MONEY AT THEM _ THE LONGER THEY WILL MANIPULATE YOU - YOU ARE NOT GOING TO MAKE YOUR MONEY BACK!!!

  • Report this Comment On March 03, 2010, at 1:58 PM, Fredlee009 wrote:

    The better question is when will stupid people stop clicking on ur articles. You offer nothing of value, and your takes are terrible. Your question is already answered in your own article. Your attempt to drum up fear with misinformation is staggeringly obvious. Please move on to another stock to cover terrible. Thank you.

  • Report this Comment On March 03, 2010, at 3:25 PM, plange01 wrote:

    sirius ready to go! the only bet left is delisting or bankruptcy court which comes first??

  • Report this Comment On March 03, 2010, at 3:31 PM, SIRIDoom wrote:

    Oh come on

    Have you NOT noticed the main media pump and dump?

    Just look at the headlines on Yahoo Finance main page.

    EVERY 3-5 days they flip flop... A few days of good news to pump up the market. Following a few days of bad news.

    This is being done to justify the overseas sell off that is pulling your investment cash out of the country. You are being robbed and they are converting and storing the wealth to buy up America on the cheap. We are being intentionally pumped and crashed.

    DON'T FORGET

    Who do you think is getting all the assets of the small banks that the FDIC is shutting down? Have you seen the headlines about Paulson and his family of master bankers being given the assets?

    It is a Goldman run World. They have our lawmakers buy the balls. So please do not expect the corruption to stop.

  • Report this Comment On March 03, 2010, at 4:14 PM, blackgary00 wrote:

    Do you really think NASDAQ would delist a stock that:

    1) Is the most actively traded NASDAQ stock?

    2) Has a market cap of over $3 billion even excluding the dilutive LIberty Media shares?

    Let's be real.

  • Report this Comment On March 03, 2010, at 4:17 PM, SIRIDoom wrote:

    Some joker is going to ask what the solution is and expect me to answer.

    Well, as a Minister and man of peace, I would crash the system before the bankers do it.

    A full financial boycott... 100 million people all taking money out of the banks and no stock trading. I would bet that in less than 2 weeks the lawmakers would be eating their own kind and have all the bankers and CFR members on trial for high treason.

    But, this can never happen with so many brain dead people drinking Kool-Aid and glued to the TV.

    So, in 5 to 10 years from now, without some correction, a small group of 10 thousand or less American will start the violence...

    OH War...

    Every time Government needs soldiers, the Jobs disappear... This is why they are doing all the wrong things with stimulus.... Just study your history for this lesson...

  • Report this Comment On March 03, 2010, at 5:58 PM, plange01 wrote:

    sirius is about to be taken off of the nazdaq menu and onto the bankruptcy courts menu!

  • Report this Comment On March 03, 2010, at 8:40 PM, FM5 wrote:

    "Siridoom" your nuts, i think you went off the deep end this time , listen i work for a car dealership, i see what go's on, i talk to the people, thay love this product , i ask customers if thay like the product, & thay tell me thay do, trust me when i tell you.... And Note, if think the mifia behind all the cars companys all over the globe putting in sat radios in all the cars, well i guess you need to see a doctor soon, O and by the way i'm italian , dont go against family....LOL...

  • Report this Comment On March 03, 2010, at 9:33 PM, SIRIDoom wrote:

    Great point FM5

    Yet, you confuse a good product with good management. If SIRI did not have a product of value, I would never have messed with it.

    As a product, SIRI should be trading $6.00 - $12.00. This tells you how bad and corrupt is the management.

    Also, I am not saying SIRI will never be worth $12.00 a share. When Mel KarmaCrook and Goldman Sachs want 12.00 share price, it will happen...

  • Report this Comment On March 03, 2010, at 10:08 PM, Br0oklyn wrote:

    Ok Honestly speaking.... "Slips Off The Doller Menu"? if im not mistaken We Closed at $0.95. In Green Terf.. Just 5 Single Cents Away?. Im Not Giving Hopes Up For This Company.. Im holding On For The Ride Besides It's Just a Penny Play...

  • Report this Comment On March 03, 2010, at 10:33 PM, RegLeCrisp wrote:

    coo-coo ca choo

  • Report this Comment On March 03, 2010, at 10:51 PM, FM5 wrote:

    The stock will go back to 6.00 to 12.00 soon, but there are so many shears out there that half the usa would be rich over night if it went up to 6.00 in one day, there washing out the day traders, like thay did today when the chart went up and fell slow and pop back up in after hours, it wont be long ...

  • Report this Comment On March 03, 2010, at 10:57 PM, FM5 wrote:

    The stock will go back to 6.00 to 12.00 soon, but there are so many shears out there that half the usa would be rich over night if it went up to 6.00 in one day, there washing out the day traders, like thay did today when the chart went up and fell slow and pop back up in after hours, it wont be long ...

  • Report this Comment On March 03, 2010, at 11:11 PM, SIRIDoom wrote:

    Day trader or Day Dreamer? LOL...

  • Report this Comment On March 04, 2010, at 12:12 AM, mikecart1 wrote:

    SIRI will be lucky to even be on the stock exchange by 2011. Trust me.

  • Report this Comment On March 04, 2010, at 12:13 AM, mikecart1 wrote:

    SIRI will be lucky to even be on the stock exchange by 2011. Trust me.

  • Report this Comment On March 04, 2010, at 9:05 AM, WoodyDog1400 wrote:

    Nice to Mikecart1 posting his pointlessness somwhere else beside google. SIRI DUMB funny you disppeared for quite some time also.... not easy being a SIRI basher is it.

    I love the "bad mgt" debate. This same bad mgt also merged 2 companies that had zero cash flow and going into BK, to a company that is now opposite. Mel is the best mgt SIRI has ever seen.

    You should not waste your time with so many characters when typing, we all know you are the main character.

  • Report this Comment On March 04, 2010, at 9:57 AM, SuperJack62 wrote:

    What is most obvious to me based on most of the above postings, is that the shorts are all having orgasms.

  • Report this Comment On March 04, 2010, at 1:51 PM, SIRIDoom wrote:

    SuperJack Shorts?

    Shorting is a scam and I hate it. But, I gave up fighting it because we can not win. So, get with the program. KarmaCrook and Goldman Sachs are shorting SIRI like clock works.

    Goldman originally justified its short position as a hedge on the merger loan. Now they do “Off Shore Partner Company” shorts on the entire market.

    Paulson family uses shorting to kill banks and even entire governments. And then the FDIC award the assets of banks to the family Paulson Bank...

    Lawmakers will not restore the short protection law because it is like a weapon of war. You can take down anyone with a good short position.

    SHORT SIRI when it rev-splits and take some of the Goldman Sachs profit. Get with the program before it gets you...

    But it does not matter how much money you make if you are not ready to protect your wealth from the coming devaluation. Even Sorose is buying Gold now... My choice is Oil...

    FBI LET CAT OUT OF BAG

    For anyone who does not know, a few months past the FBI investigated a Goldman programmer selling secrets. The FBI publicly revealed that Goldman is CONNECTED DIRECTLY TO THE BACKBONE OF THE NYX and they have SOFTWARE THAT CAN MANIPULATE THE MARKET IN “Deveiouse ways”…

    All news radicals on that have been pulled and the FBI was shushed. The investigation was classified as a national security secret… That is all you need to know to stop trading in the US…

  • Report this Comment On March 04, 2010, at 1:53 PM, SIRIDoom wrote:

    We are all in deep doo doo...

  • Report this Comment On March 04, 2010, at 2:20 PM, DJDynamicNC wrote:

    Surprising number of conspiracy theories here.

    My experience with Sirius is limited to a few friends, all of whom love it. For a dollar a share, I'm willing to buy a small bundle and give it a couple of years of growth potential. Space-based data transmission will certainly be more and more valuable in the coming years, particularly given President Obama's smart embrace of Buzz Aldrin's "Flexible Path" plan for space development.

    I give this a tentative thumbs up for long term growth potential, if you can handle the uncertainty and volatility sure to accompany it.

  • Report this Comment On March 04, 2010, at 3:40 PM, SIRIDoom wrote:

    Fact.... Fact...

    Five years ago you could say it was theories. But today this is all in plain and very well reported fact.

    But, if you think it is theories I suggest you unglue yourself from the TV.

    Fox Network is a company of Clear Channel.

    Clear Channel is sister company of Bloomberg, New York Times, CNN, and many small news papers and radio stations.

    So, who is clear Channel? Daddy Bush, Clintons, Chaney, Paulson, Mit Rummy and that Global Winning climate nut. All on the clear Channel Board...

    Your getting your theories from the snake with two heads...

  • Report this Comment On March 04, 2010, at 3:58 PM, SIRIDoom wrote:

    deep doo doo...

  • Report this Comment On March 08, 2010, at 3:06 PM, TMFZahrim wrote:

    Time for a quick fact check, SIRIDoom:

    Fox Network -- News Corp. (NYSE: NWS)

    Clear Channel -- CC Media Holdings (OTC BB: CCMO.PK)

    Bloomberg -- private, 85% owned by Michael Bloomberg

    New York Times -- New York Times (NYSE: NYT)

    CNN -- News Corp., see above

    CC's board of directors (http://is.gd/9YNxV page 4) lacks Bushes, Clintons, Cheneys, and so on. No, not even Dan Quayle.

    If these companies are related at all, it's more of a cousinly relationship than brothers and sisters. Is TV evil? Possibly. Is media a single unified body with one agenda? Not quite yet. That's all I'm saying.

    Anders

  • Report this Comment On March 10, 2010, at 11:12 PM, Br0oklyn wrote:

    I Got Hope For This Comapny I really do.

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