Time to Buy Siruis XM

[dukhunter99]

I've been watching Sirius and it appears it may have hit bottom. I'm waiting to see if it falls below $1.30/share. If it starts to increase, there is no resistance to 1.76/share. I think we will see that price next week. What do you guys think?:?:

[Jimmy058910]

Buy buy buy

[Supreona]

Well I would question why its only a $1 a share in the first place, maybe subscription issues or what not, not really sure seeing as I've done zero research. This could be a serious moneymaker at this price though, or it could wind up being 0.50 and hurting you badly. I would like this more as an investment than a trade, I would wait to see if whatever the catalyst was to send them down this low is rectified in some manner and if the solution was advantageous to the company I would pull the trigger. Otherwise it's just too risky for me when 10 cents IS 10 percent. Technicals can get you KILLED on something like this. I would be extremely cautious.


JMHO

[dk333]

i have shares of SIRI intended for a long term hold. thinking 2-3 years

[DSNT]

I've been long and have averaged down during this mess. Also thinking 2-3 years.

It's also been on the regulation SHO list for 6 weeks running. Once something new (like a radio) comes out, there could be a major short squeeze.

[aiki14]

I still don't see how these guys can raise the necessary money to meet their obligations without dilution, no matter what Mr. Karmezan says. I would absolutely be a buyer of the preferred's or their other debt before I put any money in their equity, even if my timeframe was 2yrs. There are lots of better places to put your money for the next few months for sure.

[BuyOnDips]

I still don't see how these guys can raise the necessary money to meet their obligations without dilution, no matter what Mr. Karmezan says. I would absolutely be a buyer of the preferred's or their other debt before I put any money in their equity, even if my timeframe was 2yrs. There are lots of better places to put your money for the next few months for sure.

I agree with Aiki. The time to buy SIRI(for a trade)was a few days after the Goldman Sachs downgrade. The stock traded around $2.6 when they downgraded the stock. It quickly fell below $2. That was the time to buy. Then the stock rallied as the allowed merger looked like it was going to be finalized. The day to sell was 1 day before the decision was officially announced that the merger could go through. The stock went back up to $2.75 on that day. The following day it started it's fall again. A sell the news action. The reality is both companies have huge debts. They, just like many banks, will have to raise money and dilute their stock. A lot of this could be already priced into the stock, but I don't expect it to do much for many years. That debt load is huge. Even Cramer, who loved the SIRI merger, says the stock is now basically a lottery ticket. You could win big or lose it all. But it probably will take a long time to find out.

[TheChartGuru]

Technically speaking, I would wait for SIRI to at least cross and hold above the MA(10) before buying it. It may be dead money for a while. Look at SKF and notice how it has not been able to hold above the MA(10) and may continue to walk down the MA(10). Notice in early July how SIRI ran a bit after it broke above the MA(10) and became overbought on 7/23 when it crossed the upper bollinger band and the RSI(14) was at 69.18. Although this is a very bullish sign, the break out occured BELOW the MA(200). This translates to an overbought, weak stock(bearish). SIRI needs to consolidate before it breaks out. Even then, it may only be a headfake, but may be a very profitable short term trade. It may take weeks of consolidating before a real break out occurs. Look at how BKUNA consolidated for 3 months, then broke below the bollinger bands, bounced, crossed the MA(10) around .96 and two days later hit a high of $2.38, which was resistance at the MA(50).

BKUNA: http://tinyurl.com/5eq9zu

SIRI: http://tinyurl.com/6347yh

SKF: http://tinyurl.com/6dpnob


The Guru

[dukhunter99]

High Volume alert! +195% increase in volume with a nice .15 increase. Something is going on. If it goes above $1.50/share in early morning trading, I'm going to buy. No resistance to 1.76.

[mattjames1]

I agree with Cramer saying that the best way to play this is to purchase the bonds.