The 52 week high is not $4.18. It's $4.04. It's ben within 5% of the 52 week high for months. That is bad news for people who need to go move downward. It wants to continue to stay around a high for them. Somewhere out there a short covered at $4.04. I bet he's on this board as well.
The way I see it...
You tell me if there's more pressure to cover or sell.
HAHAHAHA! Obviously you are camped out here because you got LEFT BEHIND idiot.
4. Giving Sirius XM some credit
Sirius XM issued $1 billion in senior notes due 2025 in early March. Sirius XM's financial stability is making it easier to offer new debt at low rates. These notes pay out a modest 5.375% rate, allowing it to buy back debt issued earlier at higher rates while pushing out maturity dates.
With Sirius XM's consistently improving fundamentals it's able to extend its leverage, using proceeds to either pay off debt or pay down its outstanding share count through buybacks. Sirius XM is in a good place, and credit rating agencies see it that way.
3. Sirius XM is eating its own cooking
The board knows that it has too many shares outstanding. That's just what happens when you recapitalize in 2003, double your share count by merging with XM in 2008, and accept a debt bailout in 2009 that involves handing over a 40% preferred-share stake in the company.
Sirius XM spent $2.5 billion to retire 739 million shares last year. That's roughly 12% of its outstanding shares, and it's not done yet. It still has another $1.7 billion in buyback authorizations.
Reducing the number of shares out there isn't necessary a cattle bell to clear out the bears. A lower float would tend to introduce the volatility that the skeptics crave. However, the lower share count eats at the thesis that Sirius XM is overvalued, and it also doesn't hurt that purchases made in the open market could help prop up a stock's price.
Shows how mental they are. I can see shorting a peak on occasion but to bash constantly and to root against it constantly when all the big short money is long gone, goes to show you they are a special breed of mental. I think they're really underwater and just bitter so they lash out at the board. Totally mental.
5. A reverse stock split isn't happening
There was a time when it seemed as if the only way out for Sirius XM would be a reverse stock split. It would have been a zero-sum game -- swapping 8 billion shares at $1 for 800 million shares at $10, for example -- but history hasn't been kind to most companies that declare reverse splits.
Sirius XM stuck to its guns with then-CEO Mel Karmazin arguing against the folks clamoring for a reverse. It worked. Sirius XM may have a lot of share buybacks and profit improvement to go before clawing its way into the double digits, but it's not as if institutional investors are afraid of Sirius XM anymore because of its low price. The reverse is just not necessary, and shorts hoping to cash in on a post-reverse slide are out of luck.
Here that last one greyhound and gaay_pumper?
2. Volatility is taking a breather
Sirius XM has historically been a volatile stock. You don't go from double digits to single digits to a nickel -- only to bounce back to today's price hovering around the $4 mark -- without having a wild side. However, Sirius XM's one-year beta clocks in at a low 0.85. That's surprising stability for a stock that has spent most of its earlier years with beta readings well north of one.
Put another way, the stock is boring to short-sellers. Take a look at 2014, where the stock began the year at $3.49 only to close at $3.50. Folks making bets on a stock to take a hit want volatility, and that hasn't been Sirius XM's game these days.
Bears continue to clear out of Sirius XM Holdings . There were fewer than 146 million shares of the satellite radio provider sold short by the end of February. That may seem like a lot, but it's not when you consider Sirius XM's low stock price and large market cap as a result of its gargantuan outstanding shares count.
In fact, 146 million shares sold short is the lowest number of bearish wagers placed on the stock in more than a year. We're a far cry from last summer, when short interest peaked at 318.2 million shares. We don't know where the naysayers went, but we can break down a few of the factors that have resulted in the market's less-jaded outlook when it comes to Sirius XM.
1. Sirius XM is consistently profitable, oozing free cash flow
This isn't the same Sirius XM that was fighting for its life when the shares bottomed out at a nickel six years ago. It's a media giant generating consistently positive net income and expanding free cash flow. Sirius XM has pulled off 16 consecutive quarters of profitability according to S&P Capital IQ data, and that streak should continue.
Adjusted EBITDA climbed 17% in its latest quarter, and Sirius XM is targeting 12% growth in adjusted EBITDA and free cash flow for all of 2015. There may be a valid argument to be made about Sirius XM's valuation. The stock isn't cheap by most measuring sticks. However, the bears piling on over the years on the assumption that profitability would implode have to go elsewhere.
Think of spectrum as a finite resource. SiriusXM transmissions are conducted via satellite and terrestrial repeaters. The company plans to consolidate use of spectrum. One example is to broadcast via the XM fleet and free up the Sirius fleet. The more efficiently SiriusXM uses their spectrum block, the more becomes available for other communications that can be transmitted via radio frequency. Google plans to use satellites for internet service (Google Fiber) and potentially cell phone communications. Telecoms use terrestrial signals for cell phone communication and internet service. The spectrum SiriusXM owns allows 2-way communication from broadcasting service to user and back. Pressing a dial on your radio is 1-way communication, you open a channel to receive a broadcast. This is the gist of it. An engineer will sound different than me but also will speak above the head of the average Joe. Just know that SiriusXM is not in the business of selling spectrum because they have plans to utilize it so if a company like Google wants to use it, they will have to pay for it. Investors should consider it an asset that is not reflected in the stock price. It could be a 20 billion dollar asset that is being intentionally and/or carelessly omitted.
This will be possible without Google. If they want in the dashboard, they have to go through us but there are synergies and they are an intelligent, forward-thinking company, not a band of hoodlums who collude and gang up on the more innovative companies because all these have is force and no smarts.
I'd say there is sufficient content on this board today to drive discussion about SiriusXM future for at least a few months, thanks to my note taking skills.
And don't forget Google is also launching a satellite internet provider service called Google Fiber. I see nothing but synergies considering: SiriusXM's connected car with 2-way communication, SiriusXM's unused spectrum block, Google's advances to get in your dashboard, Google's ambitions to become a cell phone carrier compatible with Android which is compatible with the SiriusXM app for Android, Google's plans to launch satellite internet which can be delivered via car via satellite.
Look we are in 70 million vehicles. Who has a bigger presence than us? Nobody. You think Google doesn't know that? Of course they do. We are getting attacked by telecoms and their affiliate lenders. Verizon is 130 billion in debt. I think there is a fertile ground for a new competitor - GOOGLE, driven by SiriusXM connected car and mobile device expansion and satellite internet to your phone and car.
Maybe these "big OEM" announcements forthcoming in 2015 will involve exclusive partnerships with Google, getting a space in your dashboard ahead of Apple.