Sirius Shares Priced Like Stamps

by: Tyler Savery October 10, 2008 | about stocks: SIRI    

Tyler Savery

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For some it may be hard to believe, but the price of a Sirius XM Radio (SIRI) share now equates to that of a first class postage stamp. While the entire globe seems on edge about financial crisis, the good ole U.S. postage stamp has remained a steadfast staple in an otherwise turbulent world.

Whether the market is up or down, consumers can rely on a 42 cent stamp to deliver their mortgage payments, a birthday card, or a simple letter to a friend. A share of Sirius, on the other hand, delivers shareholder frustration, nervousness, and wonder about how the company could arrive at this point after merging for the better of the sector.

Debate about whether this is a good entry point could go on for days, and the current sentiment of the economy would be a major factor in that debate. Buy a postage stamp, and at least there is security and stability in knowing exactly what it will do six months from now.

For believers in the technology and the sector, 42 cents seems like a bargain, but even the most adventurous investors are tending to be a lot more conservative these days. As painful as the current price is, there is little else to do but watch. In the current market, equity after equity is taking a beating, and at this point people are so soured with the whole situation that they simply do not even want to participate anymore.

What is an investor to do? That is the million dollar question. Perhaps, at least for now, take that 42 cents, buy a stamp, and draft a heartfelt hand written letter to your senator or congressman expressing your frustration, concerns, and perception about the economy, because until the economy improves, low equity prices are going to be something we have to deal with.

Position - Long SIRI

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This article has 154 comments:

  •  
    Oct 10 05:58 AM
    I wouldn't have bought my stamps at $2 if I knew I could get them for $.42 a month or so later. It's over. SIRI is going bye bye, and they're taking route 11. I'm jumping off the Brooklyn Bridge, which I should have bought instead.
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  •  
    Oct 10 08:01 AM
    Thanks for a worthless article Tyler. Its also the price of bubble gum, you forgot to mention that.
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  •  
    Oct 10 08:03 AM
    Low equity prices? Bro, the american dollar is being devalued faster than you can blink, these prices look lower everytime the FED gives someone money. Inflationary DOW...etc... rebound will be legendary. .42 cents just doesnt go as far as it used too.
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  •  
    Oct 10 08:21 AM
    I am so sick of this crap!!! I have lost a lot of money in this stock and fed up with it. why does Mel refuse to give even a little information on what is going on with financing and any kind of updates.just some kind of positive news would be nice but no not a peep from anyone. today also may be a blood bath at the markets and we can possibly be in the low 30s
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  •  
    Oct 10 08:23 AM
    p.s. this article sucks !!!! real important stuff huh!!!
    Reply | Link to Comment
  •  
    Oct 10 08:31 AM
    It's no wonder that you've lost so much money investing in this stock. Sirius isn't priced like a stamp, they have a market cap of $1.27 billion and an enterprise value that is still over $5 billion. To put so much emphasis on the price per share is dishonest.
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  •  
    Oct 10 08:57 AM
    market looks nasty for the open. get ready for a wild one today!!!
    Reply | Link to Comment
  •  
    Oct 10 09:06 AM
    A bottom is coming! Don't forget that election day is right around the corner, too. It is going to take a few more weeks and this bus is turning around. But then again, what do I know?
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  •  
    Oct 10 09:15 AM
    There are so many other stocks that are rediculously priced due to the panic that all money is coming out of speculative stocks and into those with good financial fundamentals. This is a once in a lifetime opportunity to buy quality stocks.
    Reply | Link to Comment
  •  
    Oct 10 09:21 AM
    My biggest concern is the silence from Mel. He must have a reason...and that is the puzzle that gives us the shivers!!|!!
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  •  
    Oct 10 09:23 AM
    The best buy on the board at this point in US Steel. (X) at $43.18. P/E is 4.6. 5 yr high of $196. If the govt starts infrastructure projects to get the economy going this stock will jump.
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  •  
    Oct 10 09:25 AM
    Just wish I had moe ready cash to keep averaging down, but bought yesterday. Stay Long Stay STRONG! The Big Blue Dog will not let you down! killer.
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  •  
    Oct 10 09:51 AM
    I don't think anyone wants to realize how serious this crash is. We are experiencing the worst crash of all time and I don't think there is going to be the mother of all rallies at the end of this one either. I am afraid that once the bottom is hit, there will be a period of quiet as the vast field of carnage is observed with disbelief. There will be very few trusting that it is over with. The market in a great position right now to reverse the decline, yet everyone chooses to remain caught up in the adrenaline rush of frenzy and chaos. For this I put responsibility on the media. Without doubt the media has been instrumental in perpetuating doubt and insecurity. Even these forums have contributed to the destruction. Please realize that attempting to establish false hope based on empty speculation ultimately fuels the damage by all the scattered futile attempts to quell the panic. In the mean time the casualty list will be extensive. Companies like Sirius, although potentially very strong in a normal world, will absolutely head into bankruptcy oblivion. There is not a chance of refinancing at this point so they will default. Tell me how they can avoid it? Any real ideas? Of course not. Well, I have to be pessimistic on this one. Rather than raise an umbrella while the sky is falling on your heads, perhaps it would be more constructive admitting that we live in a country that has been over run by criminals and fuck ups that could give one dick hair about the damage and destruction they cause to their brothers and neighbors. Rather than worrying about how much money we have all lost and preying for that big payday, why not rather look outside ourselves and become less like those who have caused this catastrophe in the first place? Extract yourselves from your microcosm and take a look around. Ignore what you are told. Embrace what is true. Have a good day all!
    Reply | Link to Comment
  •  
    Oct 10 09:54 AM
    Figures, I finally come up with some extra cash and put a buy order in at 35 cents and SIRI sky rockets
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  •  
    Oct 10 09:54 AM
    Blessed are the mean, for they shall steal the meek blind.
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  •  
    Oct 10 10:04 AM
    bdp, I'm sorry you feel that way. I have previously enjoyed some of your posts. I'll be taking sl62's view and watching with amusement, it is amazing. We all know how serious this is, it has to happen though. Personally I wonder if 163888 is loading up? He has had some of the most intelligent postings I've read here.

    I've been able to avg. down to a little over $1 share price, and happy to do it. Killer, I'm your cheerleader, you're fun, vegas is still calling.
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  •  
    Oct 10 10:14 AM
    bdp, your doom and gloom is very much understood at these levels. Everyone is feeling it. The fact is YOUR WRONG.

    You say you have to be pessimistic on this one. Rather than raise an umbrella while the sky is falling on your heads.

    It is understandable that the day after selling off your stock market holdings that you would be filled with remorse and pessimism. No one needs your umbrella. We didn't sell our holdings and that places us smack dab in the middle of the game. We not you are, in a position to catch a rise, which inevitably will come. To sell here is to save the sentimental remnants of what a dollar use to be worth.

    Sirius is generating revenue and paying its bills. It is not a financial company and yes, this is about as bad as one could expect for retail sellers. The automakers are in big trouble, the $25 B might not be enough but, even their filing bankruptcy doesn't mean an end to Sirius. Cars will be made and they will have Sat Rad installed in them. The car companies through bankruptcy would be in a better position to help Sirius in the future. When the retail market turns around, and they will, it will create a huge push into the revenues of Sirius XM Radio.

    The markets in general are going through a much needed deleveraging from the fraudulent and greedy actions of those at the top of our financial systems. When the autopsy of these financial institutions are performed and the FBI and SEC investigations are conclude, the people will get their pound of flesh and the Perp Walks will begin.
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  •  
    Oct 10 10:15 AM
    There is a lite at the end of the tunnel. Keep trudging, it's closer than many think. I have a lot of faith in Ken Heebner............. for one. Nice upturn this morning. { for the time being } ...... killer.
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  •  
    Oct 10 10:19 AM
    Cos...................... Let's hope so..... Let's hope so............ .....killler.
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  •  
    Oct 10 10:22 AM
    I understand the importance of hope. I have by no means given up. I am just fed up with the chaos and need to vent my frustration. Time to use our own brains. I will say one thing. If you are still actively trading like I am, look for reversals from puts to calls. I did this yesterday, bought crap and I am currently up 22%! I am sure this will happen with Sirius as well.
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  •  
    Oct 10 10:27 AM
    Hey,

    I would like to point out, as long with what sl62 said yesterday....Is it not ironic that Both SIRI, and the DOW and NASDAQ and S&P along with thousands of other stocks.... are all hitting the lows they haven't seen since 2003!!!!
    SIRI is not the only stock going down this low...
    You rtards need to stop saying this stock is going to zero...

    (The last time this stock went to .35 it was back to $4.00 a year later)
    Reply | Link to Comment
  •  
    Oct 10 10:32 AM
    Cos 1000- I sold off all my holdings and bought back in in pre market ( including 20,000 shares of siri) this morning after an evening of research at dirt low prices when I could see that the puts were exhausted and calls were going to be ruling. My earlier post was not one of doom but rather one demanding an end to the madness. I have not given up by any means. Just be sure to be careful and not blind yourself with false hope.
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  •  
    Oct 10 10:35 AM
    Killerkaul, your last post on the other article was very entertaining.

    I've got a small group put together planning a raid to secure more bullets for the cause. Wish us luck..... the woods are thick with the opposition.... just waiting for one slip to pounce. Being pessimistic and filled with fear here could cause that slip...... steady dog...

    By the way over the last several weeks in selling small blocks, $1000 worth at a time and buying back and adding $3000 in additional I've managed to average down to just under 1.70 a share. Before the carnage I was averaged in at about $2.20/sh. Like you, I am now ready for our rise from these ashes to a party in Vegas at the end of 2009.
    Reply | Link to Comment
  •  
    Oct 10 10:40 AM
    bdp - yes i agree , we all are to blame for this countries woes ......honesty , integrity , reponsibility , diligence , are things of the past .......we live in a "buyer beware" world , and nation , where you can't trust anyone ......it's dog eat dog , and the inmates are running the asylum ....our leaders are idiots , and the only solution to any problem is just to re-arrange the federal tax code ........we spend billions of tax dollars building football stadiums for billionaires , when we need to be building nuclear power plants and natural gas infrastucture ............I know this is a siri blog , but I think we have pretty much hashed out everything there is to hash out on this stock .....it's a 42 cent stock , and it might go up , and might go out .....period , end of story ...........I have listened to the doomers , and I have listened to the cheerleaders ........so far doomers 100 cheerleaders 0 ........and I have watched 50,000 in siri evaporate ............however , i am holding strong and hope for the best ........hopefully , in a couple of years I can say , " Whew !!!! That was tough , but all is well now " ..........but , I won't hold my breath when I live in a nation where the president tells me to " Go Shopping " after a major terrorist attack ...........and the entire philosophy of this country has been to borrow and spend to the max ...........while every year our dollars fly away to China , and OPEC
    Reply | Link to Comment
  •  
    Oct 10 10:42 AM
    bdp, Welcome back. It is amazing what a little research and a good nights sleep will do. Your buy back came at a good price. Yesterday I went and looked at the chart for Sirius from 2002 and found that the .41 close was a retested low from 2003. Let's hope it holds at close here until we can start back.

    I think the G7 meeting this weekend will be window dressing for a more coordinated reliquification of world financial systems and the money should slowly start to flow again by the end of next week. As was said by one of the talking heads the time for talking about the fixes are over, we are entering the period where showing the markets is going to begin next week.
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  •  
    Oct 10 10:49 AM
    There will be a huge ralley in the next few days. Unfortunately SIRI will not participate in it. There are hundreds of better stocks out there.
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  •  
    Oct 10 10:52 AM
    Cos.................. Put a sell order in at .48. ......... with the shares I bought at .40 yesterday. Maybe I can catch the fluctuation, if it happens again. Then buy again at .40ish to improve my average. Can't let you catch me! LOL. Best of luck on the bullets. They're very scarce............. and our enemies are great. Every shot must count at this stage of the battle. .. killer. ....P.S. .....glad you enjoy the adventures of the Big Blue Blue Dog. .....it amuses me and helps keep hope alive? Your cheerleader and friend ................. ...killer.
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  •  
    Oct 10 10:58 AM
    shure46- Thank you. I truly believe we will ultimately pull out of this and move along. My concern is that, once again, there will be no lessons learned and no real safeguards in position. There will always be skum bags that will configure the next loophole and pump up the neext bubble to put us right back here again. For me at least, this has not been at all fun and games. I have been working very hard to maneuver my way through this. I am not the kind of person who sits on my ass chugging a cold one and watching the game while the world is crumbling around me. On the other hand, I do have faith the governments of the world will worm out of this just fine. Whomever our next president ends up being will come out smelling like a champ! (Obama,,, McCain... same thing...)
    Reply | Link to Comment
  •  
    Oct 10 11:05 AM
    That awesome....
    The president speaks and the DOW loses 250 pts
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  •  
    Oct 10 11:45 AM
    Yea, thanks for the stamp lesson, really needed that. Siri should put out some news any news good or bad! Are they stupid tell us they can or can not get funding. At least say you are shopping for cash. Or split the damn shares up!
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  •  
    Oct 10 11:50 AM
    go up to $1 next week!
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  •  
    Oct 10 12:11 PM
    One of two things will happen. The market will go up! or there will be a total meltdown in which your money will be worthless anyway. I say if you have cash, continue to buy all the way down in small amounts to better position for the upswing which is the probable thing to happen. Reposition lower and the light will shine a little sooner. Stocks are trading so low these companies could buy all their shares back, go private and have money left over. Its rediculous! We are close to the bottom if not there. But what do i know? Im not the analysts that steered us away from this disaster, but wait!...........They didn't! So who really knows? YOU!!! You know whats best for you. Peace and Good Luck to all. Lets make some money!
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  •  
    Oct 10 12:25 PM
    Just curious, isn't there a rule that says if a stock stays below a certain amount for a certain period of time it gets delisted from the stock exchange?

    If that is the case, is there a chance SIRI will get delisted, and if so, what happens then?
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  •  
    Oct 10 01:13 PM
    neat idea, a SatRad stamp, good advertising, will reach millions!
    Reply | Link to Comment
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