Sirius XM stock tanking

[Garrett Wollman]

<<On Wed, 19 Nov 2008 16:48:26 -0600, "Kevin Vahey" <kvahey@comcast.net> said:

> Sirius XM closed at .16 cents today.

I think you mean to say that it closed at 16 cents, not 16/100 of a
cent.

> Stern has seen his stock value drop to under 8 million from nearly
> 200M. He must be thrilled.

Sirius XM has too many shares outstanding for the revenue the company
is able to earn.  (There are more SIRI shares out than GM, go figure!)
It's possible that they may run out of cash and need to go through
Chapter 11 to get their balance sheet turned around; evidently the
stock market is pricing that in. 

(Many radio companies are in similar financial shape -- Citadel closed
at 21 cents today, Radio One is at 38 cents, and Salem is at 88 cents.
You can have Cumulus shares for 46 cents a piece.  The Disney spin-off
of ABC Radio to Citadel is beginning to look brilliant: DIS made $4
billion last year, and CDL lost $1 billion.  Once Citadel is toast,
they can buy those assets back for much less than they were sold for.)

-GAWollman