It's March 15, 2010. Do you know where Sirius XM Radio's
The satellite-radio giant failed to land a bid price at or above the $1 mark at the end of 10 consecutive trading days, so Nasdaq OMX Group
It won't -- and we all know that. Never mind that Sirius XM CEO Mel Karmazin has already committed to appealing the process, a move that's likely to buy his company several more months anyway. In fact, over the weekend, Nasdaq itself gave the media heavy a pat on the back by adding the shares to the Nasdaq Q-50 Index.
This isn't the kind of move that will bump up the share prices of the eight stocks being added. There isn't a whole lot of institutional investing interest in the Q-50 components, at least not in the way that we have a ton of funds and ETFs that track the components of the Nasdaq-100 or the S&P 500.
However, that doesn't mean investors should ignore these eight stocks. Sirius XM joins other market darlings -- including Rambus
Or, as the exchange's release announcing the latest news puts it, "The Index is designed to track the performance of the 50 securities that are next in line to replace the securities currently included in the NASDAQ-100 Index."
Would the exchange be promoting a company that it's about to delist? That wouldn't make sense. The Q-50 list is tweaked quarterly, so there's always a chance that Sirius XM could get booted during the appeal process, but how stupid would Nasdaq be to give the heave-ho to one of its most actively traded stocks?
Quite simply, Sirius XM isn't going to be delisted.
Should Sirius XM go ahead with its shareholder-approved reverse split to be in compliance with the exchange, or is calling its bluff enough? Share your thoughts in the comments box below.
Nasdaq OMX Group is a Motley Fool Inside Value pick. Motley Fool Options has recommended a write covered calls position on Nasdaq OMX Group. Try any of our Foolish newsletter services free for 30 days.
Longtime Fool contributor Rick Munarriz is a subscriber to both Sirius and XM. He owns no own shares in any of the stocks in this article and 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.