Archive for November 1st, 2009

As we have watched Sirius XM Radio (NASDAQ:SIRI) shed its negative image and show real promise again in the metrics of the company, there are still writers and bloggers out there writing and posting some overly negative commentary.   The truth usually lies somewhere in the middle, as a shareholder I see a glass half full, but there are many who see a glass half empty.  What really frustrates investors are the stories that come out with a negative slant and only a half-hearted attempt at providing real information, usually backed up with no facts.  I have included several excerpts below from articles which appeared over a period of several weeks and included Sirius XM Radio that I perceive to be negative and unjustifiable connotations.  Many are just attempts to scare off the average investor thinking about investing in SIRI stock.

Let’s begin with Scott Rothbort and his article entitled “The Worst Run Companies of 2009”:

Mr Rothbort writes: ”That this company hasn’t made my list in the past is a major oversight on my part.  Sirius XM — the merger of two poorly managed and capitalized companies, Sirius and XM — is a classic case of a great product (satellite radio) coupled with a bad business model.  The company is burdened with more than $3 billion in long-term debt and $4.5 billion of intangibles and goodwill.  The strategy of giving large deals to big-name stars such as Howard Stern and Chris “Mad Dog” Russo doesn’t really seem to have paid off.  Management relied heavily on the automobile industry to spur sales, and we know how successful that has been.  Perhaps government-sponsored cash for transistor radio program could help Sirius survive.  Its date with destiny will be in bankruptcy court.”

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