After more than a year of high wire balancing, Sirius XM Radio (NASDAQ:SIRI) shares which went as low as .05 cents last year, have recovered to the milestone of over one dollar in trading today, a price not seen since September 19 2008. Yet the bashing of the company and the fear mongering continues to roll in. It would behoove all current shareholders as well as possible future shareholders to review the business model and SEC filings of the past 6 months at a minimum, as the basher press is in full swing with feigned fears regarding sentiment as well as possible r/s scenario.
The CEO of Sirius XM Radio Mel Karmazin, is on record over the course of the last few months, as saying that a r/s will only be used to stave off delisting from the NASDAQ Global Market. It appears that organically, through merger synergies and other efficiencies gained since the merger of Sirius and XM in 2008, the combined company’s stock has answered the call and is seeing favorable sentiment among investors as well as many fund managers. The climb over a dollar is sure to increase both retail and institutional interest. At the very least, Sirius XM may be on the radar for being re-instated on the Russell Index this year, as it was removed last June due to its share price. Each year, the Russell Investment Group rebalances its indexes during its annual reconstitution commonly known as the Russell Reconstitution or the Russell Rebalance. The removal event occurred June 26 2009, so there are still several months before Sirius XM has an opportunity to be re instated.
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