The debate among investors about the fate of Sirius XM Radio (Nasdaq: SIRI) is one of the most fascinating exchanges today. And frankly, the turnaround at this company over the past five years is as good as that at any business in America today. Mel Karmazin and his executive team have done a simply brilliant job of securing financing and stabilizing this business. Given where the company was in its darkest hours, it's nothing short of a miracle that Sirius XM is now positioned for sustainable cash flow growth.

And so, it is now time for the leadership team to get serious about a reverse stock split. Shareholders have approved it. And when you are competing with the likes of Apple and Google, it's not a good idea to ever have your Nasdaq listing in question. Sirius needs to get serious about a reverse split, and should execute it now. Perception isn't the whole of reality, but it definitely counts. And there's no doubt in my mind that this business is not a penny stock enterprise. It's time to take the cue from AT&T and reverse split the stock.

Fool co-founder Tom Gardner does not own shares of any companies mentioned. Google is a Motley Fool Rule Breakers pick. Apple is a Motley Fool Stock Advisor recommendation. The Fool owns shares of Google. Try any of our Foolish newsletters today, free for 30 days. The Motley Fool has a disclosure policy.