Sirius XM Shareholder Meeting: New Stock Symbol May Be Biggest News [View article]
Crunching....
The slides are just the slides. A lot of discussion goes into each of those slides. In this case it was that a share buyback is not in the cards if it increases Liberty's stake.
"Isn't this the same "hint" that they gave on the Q1 conference call? I didn't expect anything from the meeting, so I wasn't disappointed..."
It is the same hint with the added information of three more weeks of auto sales. At the Quartely they had 33% of the data. Now they have 58% of the data. That gives the hint more meat now.
Sirius XM Shareholder Meeting: New Stock Symbol May Be Biggest News [View article]
The logical reason is if Liberty feels the equity is trading for less than it should. That being said, an RMT is the likely situation and it would be SIRI doing a buyback and not Liberty
Sirius XM Shareholder Meeting: New Stock Symbol May Be Biggest News [View article]
marcap....
No luck needed with that. What I have in SIRI I have had for quite some time. Bought it real cheap, sold it in the $7's, held a small stake for the sake of holding it.
Now the snarky comment has lost all of its thunder hasn't it
Sirius XM Shareholder Meeting: New Stock Symbol May Be Biggest News [View article]
Thank you for the kind words. I try to be as objective as I can. That being said, there are time I call out suckers, but it is typically reserved for those that run blinded with this equity
Sirius XM Shareholder Meeting: New Stock Symbol May Be Biggest News [View article]
I am perfectly fine with how Malone and Maffei run companies. I like Karmazin, but also like the Liberty team. In many ways I think that Liberty and company could bring a philosophy to the table that just might be needed at this point.
Sirius XM Shareholder Meeting Overshadows Auto Sales [View article]
Neal....
I wont get into whether something is responsible or not, but will go through the mechanics that typically happen in an RMT:
- Assumption #1 - Liberty has over 50% - Assumption #2 - Liberty and Sirius XM negotiate a mutually beneficial RMT. - Assumption #3 - Liberty has 100,000 shareholders with an equal amount of shares.
- Liberty takes their 51% stake in Sirius XM and spins it into a new company (I will call it LMSR for Liberty Media satellite Radio) - LMCA shareholders each get 33,000 shares of LMSR. - The larger LMSR is then merged into the existing SIRI with Sirius XM being the surviving entity.
There is no recapitalization, no symbol change, and no longer a major holder with a 40% stake.
Sirius XM Shareholder Meeting: New Stock Symbol May Be Biggest News [View article]
benny.....
I have been dealing with opposing misinformation regarding this issue ever since the annual meeting last year. Despite the fact that i attend the annual meetings and listen to what is said first hand, there are those that do not understand the Liberty ownership dynamic and write to the effect. It is a most unfortunate situation because investors such as yourself are drastically mislead into believing something that is simply not true.
I can not state this any more simply, and despite Mel Karmazin himself saying the same thing people still believe that the liberty stake is a fixed 40%.
If Sirius XM buys back shares and Liberty does not participate their percentage of ownership increases. That is a FACT. This is regardless of their 302 million share forward contract and their 60 million share open market purchase.
Mel stated as much AGAIN today.
I would HIGHLY SUGGEST that you place a call to investor relations.
Sirius XM Shareholder Meeting Overshadows Auto Sales [View article]
Neal,
Having not been a party to the conversation, I can not comment directly. However:
1. A Reverse Morris Trust requires a negotiation between the Liberty satellite radio spinco (with an assumed stake over 50%) and the Sirius XM company as a minority.
2. Liberty could saddle the newly merged entity with debt, but that would need to be negotiated into the deal. Let's assume the addition of $1 billion in debt. Perhaps that will be acceptable to the minority if a certain number of shares were involved, or a certain number of shares were removed from the float.
3. This negotiation may involve no new debt, and would be fine for shareholders. Look at the Direct TV transaction.
4. In any case, an RMT would remove a large shareholder from the equation, which right now would probably be good for the equity.
I see no real issue here, and welcome an RMT with Liberty given their past hisory with transactions.
Sirius XM Shareholder Meeting: New Stock Symbol May Be Biggest News [View article]
Sirius XM Shareholder Meeting: New Stock Symbol May Be Biggest News [View article]
The slides are just the slides. A lot of discussion goes into each of those slides. In this case it was that a share buyback is not in the cards if it increases Liberty's stake.
"Isn't this the same "hint" that they gave on the Q1 conference call? I didn't expect anything from the meeting, so I wasn't disappointed..."
It is the same hint with the added information of three more weeks of auto sales. At the Quartely they had 33% of the data. Now they have 58% of the data. That gives the hint more meat now.
Sirius XM Shareholder Meeting: New Stock Symbol May Be Biggest News [View article]
Sirius XM Shareholder Meeting: New Stock Symbol May Be Biggest News [View article]
a point of clarity.....no "inside info". Just info that was public to shareholders
Sirius XM Shareholder Meeting: New Stock Symbol May Be Biggest News [View article]
No luck needed with that. What I have in SIRI I have had for quite some time. Bought it real cheap, sold it in the $7's, held a small stake for the sake of holding it.
Now the snarky comment has lost all of its thunder hasn't it
Sirius XM Shareholder Meeting: New Stock Symbol May Be Biggest News [View article]
That is when a buyback would happen......AFTER the Liberty issue is resolved
Sirius XM Shareholder Meeting: New Stock Symbol May Be Biggest News [View article]
Sirius XM Shareholder Meeting: New Stock Symbol May Be Biggest News [View article]
Sirius XM Shareholder Meeting Overshadows Auto Sales [View article]
I wont get into whether something is responsible or not, but will go through the mechanics that typically happen in an RMT:
- Assumption #1 - Liberty has over 50%
- Assumption #2 - Liberty and Sirius XM negotiate a mutually beneficial RMT.
- Assumption #3 - Liberty has 100,000 shareholders with an equal amount of shares.
- Liberty takes their 51% stake in Sirius XM and spins it into a new company (I will call it LMSR for Liberty Media satellite Radio)
- LMCA shareholders each get 33,000 shares of LMSR.
- The larger LMSR is then merged into the existing SIRI with Sirius XM being the surviving entity.
There is no recapitalization, no symbol change, and no longer a major holder with a 40% stake.
Sirius XM Shareholder Meeting: New Stock Symbol May Be Biggest News [View article]
I have been dealing with opposing misinformation regarding this issue ever since the annual meeting last year. Despite the fact that i attend the annual meetings and listen to what is said first hand, there are those that do not understand the Liberty ownership dynamic and write to the effect. It is a most unfortunate situation because investors such as yourself are drastically mislead into believing something that is simply not true.
I can not state this any more simply, and despite Mel Karmazin himself saying the same thing people still believe that the liberty stake is a fixed 40%.
If Sirius XM buys back shares and Liberty does not participate their percentage of ownership increases. That is a FACT. This is regardless of their 302 million share forward contract and their 60 million share open market purchase.
Mel stated as much AGAIN today.
I would HIGHLY SUGGEST that you place a call to investor relations.
Sirius XM Shareholder Meeting Overshadows Auto Sales [View article]
Having not been a party to the conversation, I can not comment directly. However:
1. A Reverse Morris Trust requires a negotiation between the Liberty satellite radio spinco (with an assumed stake over 50%) and the Sirius XM company as a minority.
2. Liberty could saddle the newly merged entity with debt, but that would need to be negotiated into the deal. Let's assume the addition of $1 billion in debt. Perhaps that will be acceptable to the minority if a certain number of shares were involved, or a certain number of shares were removed from the float.
3. This negotiation may involve no new debt, and would be fine for shareholders. Look at the Direct TV transaction.
4. In any case, an RMT would remove a large shareholder from the equation, which right now would probably be good for the equity.
I see no real issue here, and welcome an RMT with Liberty given their past hisory with transactions.
Sirius XM Shareholder Meeting Overshadows Auto Sales [View article]
Your account statements should be fine. I would shoot for getting there at 8:00 AM so as to avoid the congestion on subway or traffic.
Sirius XM Has Tested $1.83 - What's Next? [View article]
Is $1.83 The Next Stop For Sirius XM? [View article]
Is $1.83 The Next Stop For Sirius XM? [View article]
I totally agree and stated as much on my radio show last evening. I should have been more clear that it remives emotion for an individual investor