Giant hedge fund SAC Capital revealed in its required quarterly filing with the SEC that they invested a huge sum in Sirius XM (NASDAQ:SIRI) last quarter, boosting the shares they held from 280,901 to 7,668,172, as of March 1, 2011.
Shares of Sirius are trading down today as investors digest the discrepency between the promise of Sirius CEO Mel Karmazin to boost prices some time in the latter part of 2011 and the recent settlement of a lawsuit which included the agreement for Sirius not to raise prices until 2012.
The recent jump in share price was the result of Karmazin's assertion of a price increase in 2011.
Most of the movement of the stock will probably be more related to vehicle sales and the health of the auto industry than anything else.
Sirius was trading at $2.12, down $0.06, or 2.52 percent, as of 2:10 PM EDT.
Showing posts with label Mel Karmazin. Show all posts
Showing posts with label Mel Karmazin. Show all posts
Tuesday, May 17, 2011
Wednesday, February 16, 2011
Sirius (SIRI) Shares Rebounding After Plunging Tuesday
Sirius XM (NASDAQ:SIRI) continues its roller coaster performance, climbing 9 percent today after plummeting 6 percent Tuesday, when earnings fell short of analysts' expectations for the fourth quarter.
Trading volume has soared today, jumping to over 122 million shares exchanged, second to only Citigroup on the day.
Sirius CEO Mel Karmazin said, "With continuing improvements in auto sales, and self-pay churn and conversion rates for 2011 similar to our strong performance in 2010, we expect to grow our net new subscribers by another 1.4 million in 2011, continuing our track record of solid subscriber growth."
Analysts have circled the wagons around Sirius, helping to prop up the stock and give it a boost today.
One input that could help Sirius for 2011 is their projected auto sales, which was 12.5 million. Some analysts see auto sales reaching 13 million, which would result in higher-than-expected satellite radio subscriptions for the company.
Sirius was trading at $1.84, gaining $0.15, or 8.90 percent, as of 2:12 PM EST.
Trading volume has soared today, jumping to over 122 million shares exchanged, second to only Citigroup on the day.
Sirius CEO Mel Karmazin said, "With continuing improvements in auto sales, and self-pay churn and conversion rates for 2011 similar to our strong performance in 2010, we expect to grow our net new subscribers by another 1.4 million in 2011, continuing our track record of solid subscriber growth."
Analysts have circled the wagons around Sirius, helping to prop up the stock and give it a boost today.
One input that could help Sirius for 2011 is their projected auto sales, which was 12.5 million. Some analysts see auto sales reaching 13 million, which would result in higher-than-expected satellite radio subscriptions for the company.
Sirius was trading at $1.84, gaining $0.15, or 8.90 percent, as of 2:12 PM EST.
Sirius XM (NASDAQ:SIRI) May Buy Back Shares in 2012
While Sirius XM (NASDAQ:SIRI) will have to do much better if they are going to buy back shares in 2012, hints from Sirius CEO Mel Karmazin are that he's considering doing that with the free cash flow of the company. He sees it as a better alternative than paying out dividends.
That especially true of Sirius, which is so heavily dependent on the health of the fickle car industry for its success.
They could offer a dividend and have to retract it in the near future on declining auto sales, being such a cyclical industry.
So a share repurchase would make more sense and be better for shareholders, as Karmazin suggests.
Karmazin didn't say he would repurchase shares next year, but Barrington Research analyst James Goss, who maintains an "Outperform" rating on Sirius, believes Karmazin may be ready for such a move next year some time.
Goss noted, "Two year years ago, almost to the day, they were on the brink of bankruptcy. Here we are two years later, and they’ve been able to increase the size of multiple bond offerings based on stronger demand. I can’t recall too many companies going from one extreme to the other this quickly."
Sirius XM closed Tuesday at $1.68, plunging $0.15, or 7.92 percent.
That especially true of Sirius, which is so heavily dependent on the health of the fickle car industry for its success.
They could offer a dividend and have to retract it in the near future on declining auto sales, being such a cyclical industry.
So a share repurchase would make more sense and be better for shareholders, as Karmazin suggests.
Karmazin didn't say he would repurchase shares next year, but Barrington Research analyst James Goss, who maintains an "Outperform" rating on Sirius, believes Karmazin may be ready for such a move next year some time.
Goss noted, "Two year years ago, almost to the day, they were on the brink of bankruptcy. Here we are two years later, and they’ve been able to increase the size of multiple bond offerings based on stronger demand. I can’t recall too many companies going from one extreme to the other this quickly."
Sirius XM closed Tuesday at $1.68, plunging $0.15, or 7.92 percent.
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