Show you mean business Mel! You said some people were going to get hurt that went againsts you. AT LEAST buy back those 250 million shares you osold USB and Goldman for $1.50 after the merger which BROKE us down below $2.. SIRI should have never fallen below $2.36 at time of merger with XMSR.. Comeon Mel BREAK us out of this, please show these people you are SIRIUS!!
Homer,Your the one attacking my idea for our company to spend $500 million to buy back the 250 million shares at $2 that was sold to Goldman and UBS and ultimatly used against us to take us down. Mel got te benifit of the funds and GOLDMAN got the benifit of taking us down to nearly bankruptcy. They all made money in both directions. It was all alot of manipulation and its obvious to most everyone that the manipulation continues today. I am not sure which side of the fence you are on,sorry Homer,nothing personal. I know which side I am on and that is getting SIRI price where t should be. I agree with you that balance sheet is important in this economy and suggested getting rid of STERN to help there. THere is a chunk of the $500 million! Obviously PERCEPTION has alot if not EVERYTHIG to do with where the price is now.(Besides the obvious manipulation by MARKET MAKERS). We are not at this price because of the balance sheet HOMER! For people to get behind ANY leader that leader MUST show confidence in himself and a conviction for his business. Selling shares below market to GOLDMAN did not show ME Mel 's conviction for SIRIUSXM but a share buyback at $2 would at the very least show confidence and conviction. SIRI should have NEVER fallen below $2.36 PERIOD. Nothing personal I just dont think you are necessarily looking to get the share price up although you talk a good game. You seem to get real technical about things and obvious are VERY smart on all of this so it makes no sense when you say something like: "So you're suggesting there would be a 60% increase in overall value of the company... by eliminating $500MM in equity and replacing it with $500MM in junk bonds?" DUH! Yes Homer, if share at a buck now and the value of the company is indexed to the share price I am sayin the company value will increase if the share price can restableize over $2 and a share buyback could be the catalyst.
I sure regret to some degree seeing you in this light HOmer bacause I have seen you at times provide insight and seem encouraging but doesnt seem that way now as SIRI seems to me to be coming out of a hole we have been in WAY to long.
>>>you obviously have a conflict of interest here.
First of all, I don't know what your deal is here, but this is the second or third time you've made a claim bordering on a personal attack -- when all we have is difference of opinion. Having different opinions doesn't warrant personal attacks and claims such as this. Conflict of interest? Huh? I'm a long shareholder who believes that balance sheet improvements in this economy is more important at this point and time. There will be plenty of time for share buy backs in the coming years, as FCF reaches significant levels and the corporate credit rating becomes investment grade... rather than the current high risk junk status.
>>>The increase in demand of SIRI stimulated by the company's confidence to buy back shares at the price in which they sold them to UBS and Goldman would not diminish their market cap.
Second... I never made any mention of market cap, or any potential impact. My discussion very specifically focused on balance sheet impact. On what the impact of levering the company more by adding 16% more junk debt to the balance sheet could mean; while only reducing the diluted sharecount by only 13%.
From an Enterprise Value standpoint, you're suggesting that a $500MM buyback would cause the pps to rise to $2/share, while increasing the debt load by $500MM... that comes to an EV of $14.8BB. For comparisons sake, the current EV is about $9.2BB.
So you're suggesting there would be a 60% increase in overall value of the company... by eliminating $500MM in equity and replacing it with $500MM in junk bonds?
Sorry, disagree. If you want to increase the value of the company... remove debt, or in the very least, replace the current junk bonds with investment grade ones. Then watch what happens when the conservative investors and houses can and will invest in the company. The pps will take care of itself... then they can really turn it on and do the buy back at that point.
Knock it off with the personal attacks.
Ya'll moved this down to a 3 star and the message with CRAP to a 4 star. Bashers getting annoyed here!!lol. Must be on the right track. Mel, You made a pre announcement to0 earning to keep these folks from driven us down with the "no apparent reason" method just in the nichk of time. These people are very nervous about the future of shorting SIRIUS and therefore, ITS TIME Mel! lol..HURT SOME Mel!
If you were holding SIRI at the time of the merger and or for some time prior to the merger you know what I mean by the stock should have NEVER fallen below $2.36.. SIRI was RAPED big time. Things have improved on all fronts. Sure SIRI basically double the number of shares when it mewrged but XMSR was anywhere from $8 to $15 and SIRI was never below $2.36 so there was nor has there be ANY reason for SIRI to be at current pricing other than MANIPULATION! This is SO COMMON sense and EVERYONE knows! SIRI is a monopolyNOW! Do the buyback Mel! Pull us out of the hole you took us into!
Homer: you obviously have a conflict of interest here. The increase in demand of SIRI stimulated by the company's confidence to buy back shares at the price in which they sold them to UBS and Goldman would not diminish their market cap. The overall value of SIRI is DIRECTLY related to the price per share! $2 less .96 would actually be 108% increase,not 75%. I was being conservative.
Do you seriously think that should significantly lever the balance sheet in order to make a small reduction in diluted shares?
It's one thing if they could do it by issuing the bonds at 5-6% or less... however, they are in no position to do that. At best, in this economy with their current corporate credit rating - $500MM would get a coupon of at least 10%... probably more.
So again, you want to significantly lever the balance sheet and increase annual costs by $50MM+?
I'm sorry, disagree. They must continue to refinance their current junk rated bonds and make the balance sheet more stable. Once they can get a more favorable corporate credit rating -- then they could use their FCF to begin a stock buyback program that could be spread out over a couple years.
We didnt LOOSE to Malone and dont think you have the ONLY vote and say as to what shareholders would put up with. I acknowledge you seem to know an awful lot about SIRI and have a obvious very STRONG inclination on what is going on but I am now not so sure you have SHAREHOLDERS interest as much as your own,WHO are you HOMER?
>>>refinance the bonds - borrow .... yes Borrow money to buy back shares..... extreme profitability in the near future.
Refinance the bonds is a given; however, in this economy, you would not want to go in to such a situation without enough cash on hand to buyback the bonds with cash, in case an shareholder friendly refinancing deal could not be made. Remember, not having enough cash on hand to repurchase maturing bonds in early 2009 is the reason the shareholders lost 40% of the company. As a shareholder, I would not tollerate them doing that again. They need to have COH to cover a repurchase, if necessary.
Secondly, you want to borrow money to buyback shares? Seriously? You want to lever the company EVEN MORE? Adding $500MM in junk bonds will increase the debt by 16% -- just to reduce the diluted sharecount by 13%?
Have to greatly disagree with you here. That will do more harm tot he balance sheet than good.