sirius radio

[cramerica1972]

goo time to buy or wait for bigger fall?and will da merger be approved?

[DSNT]

I'm long Sirius and XM so naturally think it is a strong buy, especially after the beating the stock has taken during the merger delays, but I wouldn't buy yet. After no decision on the 5/14 meeting the stock is going to keep dropping for a few more days, and will probably start to climb as the next 2-week renewable window approaches. Around $2.50 seems to be the bottom and that's where I'll be adding to my position, probably towards the end of the week.

I think the merger will be approved. The FCC won't rule against the DOJ. The question is what conditions will be applied and when. There's a chance SIRI will walk if giving up Spectrum is a condition. If so, SIRI will get a huge pop because of the arb short squeeze, and XMSR will tank.

[Gzapper]

i like to buy all the equipment for sirius then glue it to my thighs and do a clap motion while watching granny hula hoop in a pickle jar

[cramerica1972]

i like to buy all the equipment for sirius then glue it to my thighs and do a clap motion while watching granny hula hoop in a pickle jarzapp,were you dropped on ur head as a kid?:rolleyes2:

[aiki14]

People have been talking up the merger for what seems like forever, but I would like to hear a reason why two money losing companies merging is a guaranteed winner. I see certain synergies, and I can see how reduction of duplicate assets could add a bit of value to the combined entity, but the "big" move would be all based on hype, if it indeed occurred.

[wallstreetsedge]

i have to agree with aiki on this one

if anything, i would probably take advantage of this price and start shorting it if you can get your hands on some or start taking profits if you already bought it a few weeks ago

based on the chart it looks like any interest in a m&a has probably started dying out

[BuyOnDips]

It looks like the long wait is almost over. SIRI and XMRS have been moving up this afternoon. The deal looks like it will go through.

http://finance.yahoo.com/q/cq?d=v1&s=siri+xmsr

http://www.thestreet.com/_yahoo/newsanalysis/hardware/10429906.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA

I'd sell the pop once it's approved.

[BuyOnDips]

Here's another article on the tentative approval of the merger.

http://online.wsj.com/article/SB121683130281477651.html?mod=yahoo_hs&ru=yahoo

[ZaNoob]

If the deal isn't approved then one or both companies will die. After that the FCC will have no position to leverage against the surviving entity. I don't know all the rules and regs but somewhere they might have a clause of some sort.

If the deal is approved then how high do you think share prices will go?

[cramerica1972]

i want to buy more,but a tree has fallen on my powerlines.damn u gzapper. j/k

[aiki14]

After looking at the balance sheets of both companies this afternoon, and the potential agreement, and the FCC requirements, I have come to the conclusion these guys will have to raise a significant amount of cash to actually accomplish the merger. I do not see how they could get the financing other than to issue a secondary, or very high yield convertible bonds or preferreds. All of those will be really dilutive.
If I am right, it would be advisable to sell on the pop that will occur when the merger gets approved and before the hard decisions will have to be made. If you really believe in the merger resulting in a long term successful entity, buy the debt not the equity.

[dadooh27]

I have to agree with Aiki on this one. The FCC has all but killed these companies with the delay in approval and in their timing pushed them past critical deadlines for the automotive industry. I'm certain that was not intentional on the part of the FCC (sarcasm):y:.

I believe the pop should be pretty healthy and plan to get out at that point. When Howard Stern joined Sirius the stock went to 12 and change but that was a different market and time.

Good luck everyone!

Dadooh

[englishman26]

I don't want to, and never have, owned either of these stocks.

But I'm looking forward to getting more channels in my car! :thrasher: