Blog Post

The Sirius Rollercoaster Ride

imageWe’d forgotten how addictive it can be to watch Sirius’s stock gyrations. The satellite radio operator’s share price dropped 20 percent this morning, even though there was no major news on the company today — and that’s on top of an 85-percent swing in the stock price between the market’s open on Monday and yesterday’s close.

Sirius (NSDQ: SIRI) shares have long been prone to erratic shifts; an average of 66 million shares trade every day vs. just 16 million for blue-chip Disney (NYSE: DIS). With the company mired in debt, the interest isn’t coming from institutional investors — ownership by institutional funds fell 7 percent during the fourth quarter, according to Thomson Financial. So who’s buying SIRI these days? Likely daytraders.

After the jump, a recap of the big news about the company over the last month and the stock-market reaction to those developments

— February 5, 2009: Reports that Echostar is buying Sirius debt in anticipation of a bankruptcy: shares fall about 25 percent in one day.

— February 17, 2009: Liberty strikes deal with Sirius to buy some of its debt: shares jump 60 percent on the day.

— March 11, 2009: Sirius reports fourth-quarter 2008 results and though subscriber additions were down big investors must have been expecting much worse: the share price increased by about 20 percent that day.

— March 16, 2009: Fortune publishes an interview with CEO Mel Karmazin. Despite concerns by Sirius founder Martine Rothblatt that the company missed its window of opportunity, SIRI shares jump over 40 percent for the day. (Investors were clearly more focused on Karmazin’s upbeat remarks then Rothblatt’s more dour forecast.)

Full coverage at our Sirius XM Radio channel

3 Responses to “The Sirius Rollercoaster Ride”

  1. I think the public was duped by Howard Stern, who manipulated and coerced the listeners into buying "his" stock. He seems to be the only one who profited from this entire scheme.

  2. BillyBadAss

    Who would ever comes out say they are screwed lol just bad business all together, and once again the media controlling stock activity, I for one believe that Siri has the capacity to control the Internet and media outright on the fact that it owns satellites that orbit the earth right now! do you understand the capabilities?
    If any companies that wants to expand into a global media super giant and understand how significant these billion dollar pieces of equipment can revolutionize the world as we know it !!!! does anyone understand???
    I'll take another 50,000 shares now get off your ass and let the money rain Siriously.
    plus in any global catastrophe this would be the only center for information God forbid, Steve jobs should see the potential West Coast-East Coast-Space that's a hell of a triangle