By Steve Garcia -

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. (more…)

by Steve Garcia -

With the recently announced closure of Worldspace Inc, (OTC: WRSPQ) operations in India and Africa, it is increasingly likely that Liberty’s (NASDAQ:LCAPA, NASDAQ:LINTA) intent is to go after the European market, a market with much more disposable income than India or Africa currently possesses. As written about at Rapid TV News by Chris Forrester, as well as “The Daily News Analysis” website – A Mumbai based Company by Praveena Sharma

Liberty Media has apparently done extensive due diligence on the range of possibilities and no doubt came to the same conclusion many have regarding “Worldspace” and its demise. There is not sufficient disposable income or interest in sufficient numbers in those areas of the world currently to sustain a healthy business model. It seems the speculation would lead to Liberty working on some sort of European and possibly South American/Caribbean Satellite Radio launch with help and expertise from Sirius XM Radio. Perhaps returning to India and Africa after the foundation gets stronger.   (more…)

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).

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By Steve Garcia -

As I stated in a previous article several weeks ago entitled: “Sirius XM Radio (NASDAQ: SIRI) and Liberty (NASDAQ: LCAPA, LMDIA, LINTA) Pursue Other Markets”, it appears things are heating up for the future plans of the Satellite Radio Company. On November 13^th Liberty Global, another of John Malone’s diverse holdings issued the following Press Release titled “Liberty Global to Acquire Unity Media.”

In the release it states the following points of interest:

1) November 13, 2009: Liberty Global, Inc. (“Liberty Global,” “LGI,” or the “Company”) (NASDAQ: LBTYA, LBTYB and LBTYK) today announced that it has entered into a share purchase agreement with Unity Media S.C.A. to acquire all of the issued and outstanding capital stock of Unitymedia GmbH (”Unitymedia”), Germany’s second largest cable operator.

2) Liberty Global will acquire 100% of the shares of Unitymedia for an equity purchase price of €2.0 billion ($3.0 billion), from its parent, which is owned by a group of shareholders led by BC Partners and Apollo.

3) Liberty Global is being advised by Goldman Sachs in connection with this acquisition.

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