Sirius XM Radio's Shares Got Crushed But Recovered: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of satellite radio monopoly Sirius XM Radio (Nasdaq: SIRI  ) plunged as far as 13% in a sudden rush of downside action this morning but have since recovered to a 2% gain on the day.

So what: A mixed car-sales report shouldn't dunk Sirius like this, and a programming deal with the NHL should be positive news -- unless Sirius investors hate hockey, of course. A more likely culprit behind this temporary drop is SeekingAlpha, which published a series of Sirius-bashing articles this morning.

Now what: Despite its nearly $6 billion market cap and prodigious share volume, Sirius remains a nervy penny stock until further notice. Sirius 2.0 can't come fast enough for this perennially beleaguered operator, especially while rivals Spotify and Pandora Media (NYSE: P  ) go from strength to strength. You know, a reverse split wouldn't hurt anybody but could keep the Nasdaq off Sirius' back for the foreseeable future. Wouldn't life be nicer without a constant delisting threat hanging over the stock -- and an easily erased one at that?

Interested in more information about Sirius XM Radio? Add it to My Watchlist.

Fool contributor Anders Bylund holds no position in any of the companies discussed here. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is investors writing for investors.


Read/Post Comments (7) | Recommend This Article (4)

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  • Report this Comment On October 04, 2011, at 1:57 PM, Siriusbrit wrote:

    "A more likely culprit behind this temporary drop is SeekingAlpha, which published a series of Sirius-bashing articles this morning."

    Finally, someone with access to the Yahoo headlines is able to expose these crooks who every week pump out headlines, often with absolutely no facts, only 'opinions' that they know will 'bash' Sirius and cause the stock to decline! This never ending abuse of the 'responsible position' of informing investors of facts, not fiction should be investigated and stopped!

    Publish fact based articles without "the sky is falling" headlines" and do America a favor. This kind of journalism is nothing short of financial terrorism given the current market conditions.

  • Report this Comment On October 04, 2011, at 2:12 PM, GRANDMA512 wrote:

    THERE ALL CROOKS!!

  • Report this Comment On October 04, 2011, at 4:00 PM, EEasyMoney wrote:

    SeekingAlpha is nothing more than a blog. Anyone can publish articles there and claim to be some kind of "expert." Several authors provide no data to back up their positions, and also tend to change their stances every few months or so. I wish SeekingAlpha articles were not listed on the Yahoo! Finance headlines, as it gives the misconception that they are a reputable news website.

  • Report this Comment On October 04, 2011, at 4:32 PM, rouben45 wrote:

    Yahoo should be more serious if it wants to survive by sposering crooks like eeking alpha. Google will never publish thier junk.

  • Report this Comment On October 04, 2011, at 5:15 PM, rockotodd2 wrote:

    To blame Seeking Alpha for the drop is ridiculous, it is a blog filled with hacks. For SIRI to drop like this takes big money, big money doesn't read Seeking Alpha.

  • Report this Comment On October 04, 2011, at 8:19 PM, letitbegood wrote:

    Google provides links to SA as well. But I would have to agree that SA has little if any influence over the stock price.

    There was a great article posted by Relmor yesterday on SA, which explains how internet radio really should not affect the continued growth of SIRI, and they do not even compare. One of the few articles actually presenting unbias facts. The link to the article is:

    http://seekingalpha.com/article/297327-sirius-xm-vs-pandora-...

  • Report this Comment On October 05, 2011, at 6:39 AM, TMFZahrim wrote:

    @letitbegood, you say that Seeking Alpha has no influence on share prices and then follow up by linking to "a great article" on that site. A lot of people read SA, and you see stocks diving or jumping all the time based on nothing but a SA article. Granted, mostly Chinese penny stocks and not $6 billion American media companies, but still. Also, Sirius happens to have a massive 66% of its shares in the hands of individual investors (not corporations, insiders, or institutions; contrast to 29% for AAPL, 28% MSFT) which may give SA a larger influence on this particular stock.

    Anders

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