Yahoo has a price to earnings ratio on siri at 180.00. you mean to tell me this is an acceptable time to issue upgrades when the company keeps losing money year after year. when will the markets ever learn that these type of penny stock companies with huge debt keep promising but never ever deliver.
You think Greg is a "wallstreet crook", he is right along side of every long in this stock. His money and investments are right there with us. He can't sell out, in fact for 2 years he could not even add. And during that time he was open about Sirius XM potential. He did not hide it until his company was able to buy more stock, allowing him to buy in at cheaper prices. If you look at the latest Liberty report they have aquired none of the 9.9% additional shares. Yet they have been out there supporting their investment in the company and supporting Mel and his management team. They have been open about loving Sirius XM and it's monster potential.
NOL's or net operating losses are a very valuable asset for a company to have. Many a company has been bought just for those NOL's.
Sirius XM has over 8 billion in NOL's being carried on the books. That means they can earn over 8 billion in profits and pay not one penny in taxes. So even when they show over 8 billion in profits we are going to see "special charges" or "one time charges" going against those profits to create a paper loss. So if Sirius XM earns over 8 billion in profits over the next 10 years instead of paying out 2.4 billion in taxes to Uncle Sam they will use the NOL's to show paper losses. The 2.4 billion that would have gone to the government can go towards paying down debt, expanding the company, buying back stock. What ever the company deems needed to add shareholder value.
Remember what Greg Maffei said,
Maffei repeated that Sirius XM will likely use the bulk of the NOL’s and asserted himself by stating that “Sirius XM is going to be a very profitable company.
You understand that if you take out the "Special Charges", Sirius XM made money in the 4th quarter, actually 64 million bucks. Did you not see that? Those charges were for paying off debt, paying fees out of operations for refinancing existing debt with better terms, i.e. better interest rate, new debt is unsecured, longer maturity term.
first thanks for dropping the caps..reflects much better on your argument. That said we can agree to disagree with our assessments of SXM and Pandora's business models. And I still believe Pandora may succeed but will have to figure out how to make $$.