Archive for December, 2009

9

Misconceptions of Sirius XM Radio Rebuked

By
king1
– December 30, 2009
Share

By Relmor Demitrius -

Reading news lately on Sirius XM (NASDAQ:SIRI) has been an adventure to say the least.  The amount of misinformation, outright lies, made up opinions, and simply terrible logic is staggering.  As I am only a fact based writer, let’s use facts to dispute some of these attempts by the media.  Let’s see if we can’t clear up some of this chatter.

Satellite Radio Technology is outdated.

This is actually the furthest thing from the truth possible.  Satellite delivery is the cutting edge of technology.  More and more satellites go into orbit every year, for more and more applications.  Fact.  There is no debating this.  TV’s are going to satellite delivery, as cable companies have trouble expanding with costly start up costs, and the need to dig up dirt, or run wires from house to house.  This is archaic technology, and is not the future.  Cable TV might never go away, but reports are coming in fast now with Comcast buying NBC that broadcast over airwaves TV might be dead very soon.  Which makes sense.  We see the “old technology” delivery of radio, terrestrial radio, is losing market share and money.  Citadel Radio just declared bankruptcy, and Clear Channel went private.   They can’t even trade as a stock anymore, that’s how bad it is.  You couldn’t even FOMENT that stock up if you tried. 

Read the rest of this entry »

Tags: , , , , , , , ,
2

With Credit Ratings Improving, Sirius XM May Target Merger Note Refi

By
admin
– December 22, 2009
Share

King of All Trades Staff -

Sirius XM Radio(NASDAQ:SIRI) has received two S & P corporate credit ratings upgrades this year. In April S & P took their corporate credit rating  from CCC to CCC+, and another one in August to a B- rating.  Perception of a company’s debt load and its ability to repay that debt is vital to a company’s ability to obtain new money for refinancing existing debt for better terms, or to obtain new debt altogether.

Now this month JP Morgan (NYSE:JPM) has initiated coverage of  Sirius XM’s credit.  They have begun coverage with an over-weight rating.  Sirius XM Radio has confirmed this coverage.

This rating typically indicates the company’s debt is a reliable long term investment at this point in time.  As equities are bought and sold, so are a company’s bond issues.  It appears now that JP Morgan will cover both Sirius XM’s equity, which they have given a Neutral Rating, and now their debt as well.  JP Morgan re-initiated coverage of Sirius XM’s equity in May of 2009.

Being bullish on a company’s debt is encouraging, as the company may seek to further refinance existing debt, especially the 550 million in bonds sold in July of 2008, to facilitate the merger of the two companies, Sirius Satellite Radio, and XM Satellite Radio.  These bonds were considered “ugly financing” by investors due to the company giving lent shares along with the bonds so they could be properly hedged.  If this debt were to be refinanced with new money, the rate might come down (7%), and the lent shares (202 million against the current float) would be returned and destroyed by the company.  These shares have never counted when calculating earnings per share, but are still involved in the float.  In the Q3 quarterly report Sirius XM reported 60 million of these lent shares were returned and destroyed by the company.

Another bond issue Sirius XM might target is the other bond issue needed to facilitate the merger in July of 2008.  These 13% 770 million notes due in 2013 carry a higher interest rate, and are due sooner.  Either way, both have reasons to be targeted first, depending on managements corporate strategy.

Sirius XM was able to refinance most of its 2009 outstanding debt due to Liberty Media’s loan in February of this year.  Sirius XM’s 40% equity stake awarded to Liberty for this assistance is trading in Liberty Media’s holding company, Liberty Media Corporation Capital (NASDAQ:LCAPA).  Other tracking companies of Liberty Media include Liberty Media Corporation – Interactive (NASDAQ:LINTA), (NASDAQ:LINTB), Liberty Media Corporation – Starz, (NASDAQ:LSTZA), (NASDAQ:LSTZB), and Liberty Media Corporation Capital (NASDAQ:LCAPA), (NASDAQ:LCAPB).  Liberty also owns the controlling interest in Worldspace, Inc. (OTC:WRSPQ).

Read the rest of this entry »

Tags: , , , , , , , , , , ,
0

King of All Trades Financial Media to Publish to Broader Audience

By
Rick King
– December 22, 2009
Share

By Rick King -

King of All Trades Financial Media is pleased to anounce we will soon be reaching a broader audience. With growing partnerships at additional Finance News Publishers and direct support from excited fans on their own blogs.

Please feel free to join in the discussion today in our member forums and participate in our growing online community.

To existing members: Our success is a direct reflection of your support.

Thank you and Merry Christmas to all.

Rick King
Co-Founder
kingofalltrades.com

Tags:
8

Sirius XM Radio Insiders Looking for Higher Prices

By
king1
– December 21, 2009
Share

By Relmor Demitrius -

Having insight into a company’s insider sentiment can be a key element in deciding where to invest ones money.  If insiders of a company are dumping shares like there is no tomorrow, it would probably not be a great idea to buy shares insiders are selling.  Now this of course isn’t always true.  Sometimes insiders will sell shares to pay taxes, or if they want to exercise an option contract.  As the case with Sirius XM Radio (NASDAQ:SIRI), they are also sometimes shares given as bonus money, when a company is trying to save cash.  In lieu of cash, Sirius XM gave some insiders shares to vest and sell automatically upon maturity.   When this was set up, there was no decision to be made.  No weighing options, those shares had to sell.  So in effect, these share sells did not offer us insight into sentiment.  We now have our first sign of sentiment in 2009 going forward.

I wrote a few weeks ago that December 18th would be a great date to first gauge insider sentiment on the stock, going forward.  Well apparently these option shares vesting from December of 2008 were not exercised by the 8 insiders involved.  They decided to hold the option contract for .14 cents, and will in effect be adding these shares to their portfolios in “in the money” option form.  This is the bullish sentiment I was talking about in my article earlier.  I was looking for insiders to hold and add shares to their position here.  These options don’t expire for many years, and they have no hurry to add these shares to their portfolios by exercising the option call contract.  Usually when options are exercised, it is to sell them.  Appropriately 212,000 shares are now for all practical purposes been added by insiders.  With so many positives ahead, I don’t think too many Sirius XM investors didn’t see this coming.

When your best days are ahead, why sell?

Sirius XM ‘s stock has been steadily recovering since Liberty Media purchased a 40% stake from the company in March for a short term loan, all of which have now been repaid.  This holding is tracking in Liberty’s (NASDAQ:LCAPA) ticker.

Tags: , , , , ,
4

Liberty Media Working With Sirius XM Radio Could Have Global implications & Impact Ondas Powerbrokers

By
Andrew Montero
– December 21, 2009
Share
Recently, rumors have been running rampant regarding the relationship between Sirius XM Radio (NASDAQ:SIRI), Liberty Media (NASDAQ:LCAPA) and Worldspace (OTC:WRSPQ). There has been some very misleading information laid out in all instances.  Most recently, an article claiming that Delphi and Ondas were ruining any chance Liberty had to use Worldspace and Sirius XM Radio to capture Europe and other areas globally.(http://www.rapidtvnews.com/index.php/200912065371/delphi-knock-out-for-siriusworldspace.html)
Well, as I always say, a little investigation goes a long way. Upon doing some research and reviewing the Delphi website, I found this interesting Press release from 2006:
Release Date: January 04, 2006:
LAS VEGAS — Delphi Corp. announced today that it has become a strategic investor and technology provider for ONDAS Media SA, (ONDAS) the premier European satellite radio company. Delphi made the announcement at its media briefing here today at the 2006 International Consumer Electronics Show. Delphi officials said the company has made significant cash strategic investment in ONDAS. ONDAS expects to launch a full subscription-based satellite radio service in 2009 with more than 150 channels of music, sports, news and entertainment as well as digital telematics and data services across Europe.(http://delphi.com/news/pressReleases/pressReleases_2006/pr66602-01042006/)
Tags: , , , , ,
Older Entries