Today was a day that reminded me just how predatory and evil some Wall Street movers and shakers can be. The negative slant and bias regarding SIRIUS XM and its stock was out there in all its glory with no less than 8..yes that’s correct 8 articles out of 10 bookmarked on YAHOO….all spewing negatives about SIRIUS XM. You’d think it was the only stock in the world that traded with that type of coverage; coverage by the way from Jim Cramer’s own thestreet.com (TSCM) and Realmoney. Take a look for yourself;
- XM SkyDock Receives Design and Engineering Award From Consumer Electronics AssociationPR Newswire(Tue 5:01pm)
- [video] Sirius Bonds — Not Commonat TheStreet.com(Tue 2:00pm)
- Sirius Mailbag: Time to Get Rid of Stern?at TheStreet.com(Tue 1:35pm)
- Martha Stewart Living Radio’s ‘Thanksgiving Hotline’ Launches on SIRIUS XM RadioPR Newswire(Tue 12:51pm)
- What Sirius’ Earnings Really Tell Usat TheStreet.com(Tue 12:44pm)
- [$$] How Are the Mortgage Insurers Still Viable?at RealMoney by TheStreet.com(Tue 12:40pm)
- [$$] Use Sirius Bonds to Play the Other Sideat RealMoney by TheStreet.com(Tue 10:59am)
- [$$] A Siriusly Unattractive Investmentat RealMoney by TheStreet.com(Tue 10:32am)
- [$$] Sirius XM: Radio Ga Gaat RealMoney by TheStreet.com(Tue 8:33am)
- Avoid Sirius; Try Some ETFs Insteadat TheStreet.com(Tue 8:33am)
To make things even worse Jim Cramer himself is now going against his own word, and covering SIRIUS XM, a company he said was worthless and should be giving all common stock to the bondholders. He has stated that he is bullish the company and service, but not the equity. This is a 100 percent radically different opinion than Mr. Cramer had right before the merger, calling this stock a “$5 stock”. Adding only a 40% dilution to that figure, but adding in improved metrics as well, now the stock is “worthless”, according to Cramer. If anything, ration would dicate that it is at least worth 40% of $5, plus synergies realized, improved revenue, and critcally acclaimed new products. Investors of Sirius XM radio have been critical of Mr. Cramers complete 180 in this issue. Here is the free excerpt Jim Cramer lets you read to tantalize you to subscribe to his service, a service that has its own set of critics by the way……
I have highlighted the important parts of his little fear job for readers. Ironically, if you remove the first sentence, it could almost read as making a bullish case for the equity and company, for the better the company performs, so increases the value of the bonds.
Use Sirius Bonds to Play the Other Side
By Jim Cramer
About this article:
If you like Sirius, do not play the common stock. The bonds are the best bet. Not that long ago, in the summer, Barclays put out a terrific piece about the 3.25% Sirius converts due 2011. These converts, which currently sell at 88, could be a great play on any turn, because they will get paid off at a nice gain. Barclays likes it because there is no other Sirius debt due ahead of it, and if it gets in trouble, Liberty Media, the new investor that injected capital, will make that debt good, because bankruptcy wrecks the principal asset that SIRI brings to the table: its gigantic operating loss. I am also drawn to the 9.625% notes that mature in 2013, a piece of paper that has zoomed in value since the decent quarter Sirius posted, and which trades more actively than all other bonds….
Mr. Cramer, you seem to have forgotten some numbers in your little excerpt. Try these on for size along with a couple of quotes:
Sirius XM 3rd Quarter Results
Net Subscriber Additions of Over 102,000
Pro Forma Total Revenue of $630 Million, Up 3%
Pro Forma Adjusted Income from Operations of $106 Million (Improvement of $143 Million YOY)
EPS, Excluding Charges, ($0.00) vs. ($0.05) YOY
EBITDA on track for over 400 million for 09
CEO Mel Karmazin quote:” We are focused on increasing EBITDA and FCF, as well as shareholder value”
Board Member and Liberty CEO Greg Maffei quotes “Our Sirius investment has performed very well” and “We consider Sirius XM to be the anchor of our LCAPA stock portfolio”
I would debate Mr. Cramer on his comments regarding SIRIUS XMs principal asset being it’s NOL carry forward…which although a nice asset is not the main or the biggest reason to own shares of SIRIUS XM. The biggest reasons to own SIRIUS XM common shares are the improving metrics and Business Model. The undeniable synergies created when these two companies merged, and the free cash flow, and EBITDA growth, coupled with subscriber growth and additional revenue streams, which all bode well for the company’s dynamic recent turnaround and the future. I just have to ask though, as I am sure many other folks who read this stuff do…why the street.com….and Jim Cramer are so interested in SIRIUS XM, and more specifically…why they are so interested in writing several days worth of negative articles in one day…which by itself should be looked at with questioning minds and skeptical eyes. As a matter of fact during the run to the second quarter conference call, Cramer said the stock should be given to the bondholders and that it was worthless. Scott Moritz of thestreet.com also managed to push the idea not once but twice that SIRIUS XM was on track to lose 2.1 million subscribers this year, apparently Cramer is doing a 180 degree turn and giving somewhat limited coverage on SIRIUS XM now.
Jim Cramer said himself that you are not supposed to foment the idea that a company is doing badly, but I guess that only applies to Hedge funds, and not lying corporate miscreants and malcontents. Yes Jim there are still enough sheep out there to keep you relevant, however more Sheep dogs are now around to protect those sheep from wolves like yourself. It is more than obvious what Cramer and his cronies are attempting to portray. This entire negative campaign is about getting you and me, the common stock holders of SIRIUS XM to sell our shares on fear of bad news and get out leaving any future gains and cheap entry to those who write the sort of negative articles with little or no facts and alot of purposeful omissions in the details and to Hedge Funds, Institutions and wealthy investors that have missed the boat to this point. The choice to be made belongs to you the retail investor. The SEC filings and recent events are all available for review right up to the Q3 filing of the 5th of November. (http://investor.sirius.com/ ) I would suggest that ANYONE who has an interest, take the time to review and read those filings. Once you do, you will most likely be glad to have read this article. I am a Sirius XM subscriber and investor, and I write these articles to help you get to the bottom of the pile of steaming garbage that is disseminated in the mainstream media and on some blogs. Best of luck to all, and do your own due diligence.
Disclosure: Long SIRI
Nice article!
This is all management. They are responsible for what is written via TSCM.
Great write.. Cramers days are numbered , i just don’t know his motive
sirius will replace FM soon
Well thot out and written. Good facts
Garcia hit a home run on that artical.
Isn’t there any way to truly hold Cramer responsible for the vomit that he constantly and blatently spews? Years ago I respected his opinion, but now i detest his mere existence.
SIRIUS HAS REASON TO BE APPLAUDED. THE WORLD HAS GONE TO HELL IN THE PAST 12 MONTHS YET SIRIUS IS MAKING GAINS IN ALL AREAS WITH MANY FERTILE SEEDS PLANTED IN MANY LOCATIONS OF THE ENTERTAINMENT ARENA. WHY IS IT THAT CRAMER ISN’T BRAVE ENOUGH TO SHOW HIS TRUE SKILL BY MAKING PERFORMANCE ESTMATES PROIR TO THEIR PUBLISHING RATHER THAN PICKING THEM APART AFTERWARDS. THERE IS NO SKILL IN THAT WHATSOEVER !! CRAM IT CRAMER !!!
THANKS STEVE !!!! TRUTH IS ALWAYS 20/20
great well thought out article…you pointed out your biases: owning the stock and being a subscriber.
I just don’t buy that cramer and the TS have no biases. It’s obvious from this blatant unprecedented (in terms of sheer number of articles) attack that cramer and TS are doing the bidding of someone. motive and malice are shown by the blatant and unprecedented nature of the attack this time.
also, I counted eleven (11) articles from cramer/TheStreet yesterday, not “just” eight.
Stockholders with patience will be the ones who laugh last Mr. Cramer.
Nice article Steve.
yea i agree that was quite the attack yesterday !!! im not sure how legaly they can get away with this . on the other hand i did notice that siri held her ground quite well ( better then i thought it would ) he should be in jail for manipulating this stock .
It’s easy to understand Cramers’ obsession.
My guess is he bought a bunch (or recommended a strong buy to some of his high powered friends).
Then he missed the bottom back in February, and didn’t buy like the rest of us.
Good stuff. But consider only mentioning that negative BS exists and where it comes from, without actually quoting it. All you’re doing is giving the BS extra life and needlessly lengthening your article with it.
Let your factual counterpunches be the focus. They speak the loudest.
Excellent article Steve! Thanks for continuing to expose this obvious agenda to smear SIRIUS XM. The day is coming soon when Cramer and his cronies are going to have to eat crow. This is a terrific turnaround story and all of the shareholders will be rewarded handsomely if they just continue to exercise patience. CY 2010 is going to be huge!! I remain LONG and STRONG SIRUS XM
Mr. Cramer has a personal vendetta with Mel K. and has been making lots of money shorting the stock. Again as I’ve stated before, Jon Stewart of The Daily Show handed Jim Cramers head in his hand after he aired a video showing Cramer telling some young broker how selling short and manipulating a stock is not ethical but a great way that he makes money! This is should have been CNBC’s cue to let him go. But no they are making too much off his ratings to kick him off the air. CNBC should be ashamed of themselves. Jim hides behind his charities that gives the impression that he’s an ethical man. He is what is wrong with the system. Anything is condoned in America if it makes you money and he is the poster child of why we have lost trust in the markets and the media. GE the parent company of CNBC should also be ashamed of their lack of action on this phony “I’m just a humble guy trying to make you an honest buck”. Hey 60 minutes, did you ever consider a piece on this fraud who comes off as if he knows everything on every public stock in Cramerica! He’s like watching an evangelist except of passing the hat he has made himself into a household brand that passes the hat for him.