SiriusXM Jumps on Buyout Offer; GM Falls on Weak December Sales

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

Stocks ended flat today as the Federal Reserve came back into focus on the second trading of the year. The Dow Jones Industrial Average (DJINDICES: ^DJI  ) finished the day up 28 points, or 0.2%, while the S&P 500 fell a smidgen, dropping 0.03%. Investors focused on comments from Philadelphia Fed President Charles Plosser, who said that the central bank faced "immense" challenges now that it had reduced is monthly bond-buying program. Outgoing Chairman Ben Bernanke responded to Plosser's remarks by saying that the Fed was still committed to helping the economic recovery, which "clearly remains incomplete."

Shares of SiriusXM Holdings (NASDAQ: SIRI  ) were getting a boost after hours following partial-owner Liberty Media's (NASDAQ: LMCA  ) offer to purchase the remaining outstanding shares in the company. Liberty actually proposed converting all shares not owned by the media company to be converted into 0.076 of a share of Liberty stock. If the deal goes through, current Sirius shareholders would own 39% of Liberty Media. The offer translates into a 3% premium on Sirius's closing price of $3.57, and shares climbed 3.6% in extended trading after the announcement. The SiriusXM board has not yet issued a response to the offer.

Elsewhere, shares of General Motors (NYSE: GM  )  fell 3.4% as its December sales figures disappointed the market. GM said total vehicles sold fell for the month fell 6.3% from a year ago, to 230,157, even as 2013 sales were up 7.3%. The automaker blamed a lack of sufficient pickup truck inventory at dealerships and aggressive discounting by Ford for the decline in sales. Still, 2013 was a generous year for the auto industry and, as the economy continues to improve both here and in Europe, auto sales figure to pick up steam. At a forward P/E of 8.5, today's drop could present an opportunity to pick up some shares.

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  • Report this Comment On January 04, 2014, at 12:54 PM, Jokers4 wrote:

    Grand theft if not improved to +4.33. Board beware

  • Report this Comment On January 05, 2014, at 9:25 PM, draland wrote:

    Agreed on with respect to the ONLY comment on the board. Malone Mafei and Meyer have obviously worked to knock down the share price since the last CC. They no longer have any interest in a higher pps and seek only to grab the cash flow. Unfortunately for them I and many other long time holders of SIRI cannot take another fleecing in the promise of a 'better' day when we were recently ahead by 50% prior to their tepid CC. I can expect no better for the up coming CC, and accordingly will join in with others to deprive Malone of the only thing that they seem to care about now.........Cash Flow.

    I own 3-subs and will seek to cancel them ASAP along with my sales of stock.

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