If he were smart, he would have sold the stock the second he got it. This chart tracking the stock for the last six months speaks volumes.
Posted on 12/05/2006 4:06:58 PM PST by MovementConservative
Shares of Sirius Satellite Radio fell more than 7%, or 30 cents, to $3.89 a share in the first 30 minutes of trading Tuesday morning (Dec. 5) after the satcaster cut its year-end subscriber forecast by 200,000 to 6.1 million. Shares of SIRI hit a low of $3.75 at 9:48 a.m. before beginning a slight rebound.
After the stock market closed Monday evening (Dec. 4), Sirius CEO Mel Karmazin issued a statement noting that sales of satellite receivers since the Thanksgiving weekend “have not been at the pace we had anticipated. We are updating our year-end 2006 subscriber guidance to between 5.9 million and 6.1 million.”
The move by Sirius reverberated on Wall Street as analysts began slashing their ratings on the satcaster, sparking a new wave of predictions that Sirius would have to merge with its rival, XM Satellite Radio, to survive.
“I have to tell you, I thought that without a merger with XM, these two companies might not create a lot of wealth in the next few years,” wrote Wall Street gadfly Jim Cramer in his RealMoney.com column posted this morning on TheStreet.com. “Mel convinced me I was wrong," he continued. “I wasn't. I blew it. I should have stuck to my guns. I feel embarrassed. And I don't like it,” bemoaned Cramer, who also hosts CNBC’s “Mad Money.” “Mel had been money in the bank. Everyone deserves one strike. But in my league, two strikes and you're out.
“Even a half-strike more and you're out in this satellite game,” Cramer continued. ”If Mel hits the low end of the range or doesn't hit it at all -- both entirely possible if sales don't pick up in the next two weeks -- this one's done for, without a merger.”
Bear Stearns satellite analyst Robert Peck cut his rating on Sirius to underperform, noting a weak retail environment and the fact that Sirius is losing ground to XM in the race to have new car manufacturers insert its receivers in new cars. Morgan Joseph’s David Kestenbaum, meanwhile, slashed his rating on Sirius to hold.
So how much did Howard Stern lose? LOL!
XM and Opie and Anthony are better anyway.
See ya Howie.
Would the Feds allow a merger?
I was probably one of the 200,000. My car came with the Sirius radio and a free year's service. Never used it. Despite repeated phone calls, emails and letters from them, I won't be renewing
If he were smart, he would have sold the stock the second he got it. This chart tracking the stock for the last six months speaks volumes.
I guess we'll see him soon, shuffling the streets, mumbling profanity and exposing himself to passersby.
In other words, the only change is he'll be outside.
Stern and Karmazin will raid the company for whatever money it has left before chapter 11, and leave shareholders holding the bag.
Not sure they'd care. What's 100 percent of a peanut market ?
The only reason they talk merger is to keep the stock up while they sell all their insider shares.
Why would anyone spend money to listen to radio?
do you spend money to watch TV?
We've been over this in detail. People who live in rural areas or travel a lot find satellite invaluable.
Sounds like the Quadrasonic versus 8-Track battle from the 1970s. Not quite the same, as they were 2 different technologies, but you know what I mean. Okay, I'm wrong, but I'm going to hit "Post" anyway.
Yeah, he's down to his last 150 million. What a drag!
Ultimately, sustained business must originate from receivers in new cars, as it is passive. If new cars came with no radios at all, and you had to go aftermarket to install one, only a minority of people might go out and get radio's installed.
Right now, Sirius = Stern, and I'll bet a lot of new car makers don't want baggage like that.
I like Sirius. Good selection but it didn't take long to notice they looped their music way too often.
All they had to do was change up their selection way more often on my favorite channels and I'd still be there.
This is series.
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