Do you see the stock of Sirius Satellite Radio rising with potential XM merger?
June 29th, 2009
BoSox2525 asked:
With XM Satellite Radio and Sirius Satellite Radio possibly merging, do u see a rise of their stock? Let me know your opinions. Im looking to throw a couple hundred dollars into the stock market to possibly make some money and looking for ideas. Sirius currently at $2.80 a share. Let me know what u think. Thanks!
William said:
When the merger which is still delayed and has questionable business motives is approved, their will only be one stock. Today SIRI and XMSR trade as two stocks. Look back about a year and see the levels that they traded at. XMSR and SIRI had a big run up. When SIRI was trying to gain market share and catch XM they threw a lot of money at a lot of people to get them on their side. These contracts are still there in both businesses. The merger has been sold to the FCC and SEC as one that will benefit consumers and I believe that they have agreed to lower rates. I can’t see hwo their business model can work at the current rates much less lower rates.
kate said:
I think that with their debt to revenue ratio
( 1.32 Billion debt and only 790 Million in revenue )
Any potential mergers would let it go into bankruptcy first (since it is actually already bankrupt) and then acquire it .
Stockholders loose all when it hits bankruptcy ,
Just like when KMart went under then Sears picked them up . All KMart stock went to 00.00 !
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lithium630 said:
The merge will be great for both companies. I believe it will go through, because both companies will eventually go bankrupt if it does not. A couple hundred dollars is a waste of your time though. Most of your profit will be lost to fees.