Sirius Stock Up as CEO Buys Two Million Shares
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Peter Lynch theorizes that “insiders might sell their shares for many reasons, but they buy for only one: they think the price will rise.” If that’s the case, then adding to an already existing position of company stock, should be considered as a positive development.
According to a filing with Securities and Exchange Commission released on Monday, Mel Karmazin - Chief Executive Officer of Sirius Satellite Radio (SIRI) has purchased 2,000,000 shares of the common stock on the open market, with an average price of $1.3732 per share. Karmazin now holds some 8.5 million shares of direct stock ownership.
Karmazin’s purchase seems to have improved somewhat investor confidence. Monday, in after-hours trading, shares of the satellite radio company gained more than 7%, rising to $1.49.
Sirius shares have experienced a meltdown and have dropped from above $60 in fiscal 2000 to the current $1.49.
Disclosure: None
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This article has 51 comments:
Who drank my tea leaves?
Not one person has made the connection yet between Mel's contract and these stock purchaces. Why?
In Mel's contract he receives CASH in the ammount equivelent to the tax liability for any and all stock options he receives.... Wanna bet he just received 4-6 million shares of Stock?
Sanjia
Financials go out officially on Thursday and he buys 2mill shares in Mondays after market??
I'm getting in on this one - I'll cut my losses down to peanuts in 2 days.
of Value
Investor
He already bought the shares, what do you mean "ponying up"?
What point are you trying to make?
....insiders buy for one reason.
et cetera
"Stock Ownership and Holding Policy. We do not require specific ownership or holding requirements for named executive officers. "
Was there a superceding statement made in some other filing? Here is the link to every proxy SIRI has filed:
sec.gov/cgi-bin/browse...
et cetera
Roadkill
Roadkill
Alcatel-Lucent is also the world leader in point-to-point microwave radios and wireless transmission; with over 50 years expertise and over 17% of the global market share in 2005. It has a field-proven experience in deploying and managing wireless transmission networks and 2G, 2.5G, and 3G mobile backhauling.
Alcatel-Lucent has several notable non-network-based businesses. It has a Transport Solutions division that provides routing, control and network management for railway and mass transit operators, such as city undergrounds in Berlin, London and New York.
Lucent buyout
On April 2, 2006, Alcatel announced a merger with its U.S. competitor, Lucent. The combined company, Alcatel-Lucent, was expected to have revenues of approximately $25 billion U.S. based on 2005 calendar results.
The acquisition was completed on December 1, 2006.
On February 8, 2008, Alcatel-Lucent posted a $3.74 billion fourth-quarter loss and canceled its 2007 dividend, after taking a writedown of more than $3 billion on its U.S. wireless business. Analysts suggested that Alcatel shareholders had overpaid for Lucent.
Expert
Now, the fact is that Peter is WRONG. There are CEOs who buy stock just for PR...to make morons like you think he has a real reason to buy it. That way he cannot lose right? As well, when you are paying a CEO an INSANE amount of compensation, tossing a few million here and there is nothing. Those shares were indirectly goven to him by YOU GUYS -shareholders.
Face it. This company is finished. It's just a matter of time. I knew a long time ago they wouldn't make it. Only the most brainless people bought this stock - typically the most desperate, uneducated, broke people looking to strike it rich...lol...good luck.
Want to explain why NAB, et. al spent MILLLIONS trying to prevent this merger if the company was headed for the cliffs??? Either they are really stupid or they wanted to stop the merger of a future MONSTER company.
Everyone following this stock knows about the subscriber base and its potential, the fact that sat radios can go into electric, biofuel, hybrid, fuel cell and good old gas guzzling vehicles (and aircraft, watercraft, and, who knows, probably even spacecraft within range of the Clark Belt or wherever Sirius-XM's bird based transponders are signalling), the killer programming lineup, the requirement to manufacture a new set of merged company hardware that supports announced offerings (technically, absolutely doable), a related star's potential future contract cost contraction to sub .5B dollars, lots of noise from nervous shorts (have the pros covered yet?), regular interest by the financial media (briefly, almost daily on CNBC), Wall Street's reported, understandable willingness to give the new company several quarters because of FCC foot dragging, speculation at all levels, steady buzz at blog level, the challenging CNBC remark to Mel (think he cares? only with every fiber of his being) about having a stock that trades at an embarrassing level (uh, and when did he sink 2M more into the stock?), and much more tells me to go long--long, baby! Sirius-XM is just waiting to catch air and ride a thermal up above the Bollinger Bands, beyond the 50-day SMA, through the 200-day average, and to the stratosphere. Now, short this naysayers.
of Value
Investor
What is your mission here? You obviously don't like this company or the stock....we get it.
My only guess is maybe you lost a lot of money buying this stock at the wrong time....sorry to hear that.
But some are willing to take a risk for a great payday.
Nothing is guaranteed with ANY stock so why whine and complain about this one??????
This country was founded on risk-takers......not belly-achers!
sander's
of Value
Investor
As with all my purchases, just waiting for the bounce. Not trying to predict when or how.
163888
Aug 06 12:23 PMThe Real Expert, You are the joke. I love when people like you come here you guys are my comic relief. You should try doing your own research. Tyler has stated many times, that they (he or Sirius Buzz) get nothing from satellite radio sector. He has also stated that he sold most of his shares like many of us that got in at the beginning, back in 2005. He has stated that, while he still has some it is not a a great deal or what he would call a life changing amount if it went up alot.
Next as to what Mel has bought in SIRIXM and what kind of money he has made. This is why you have no glue what you are talking about.
11/19/04 - 1,500,000 purchase @ $5.3589; cost $8,038,350
01/12/06 - 1,000,000 purchase @ $6.2085; cost $6,208,500
05/30/06 - 1,000,000 purchase @ $4.468; cost $4,468,000
08/04/08 - 2,000,000 purchase @ $1.3732; cost $2,746,400
Total purchases: 5,500,000 shares for $21,461,250; cost basis is $3.902
Next, I want to point out his cash salary and bonuses...
Mel Karmazin
2004 Salary: $147,436 Bonus: $0.0
2005 Salary: $1,250,000 Bonus: $2,200,000
2006 Salary: $1,250,000 Bonus: $3,000,000
2007 Salary: $1,250,000 Bonus: $4,000,000
2008 Salary: $1,250,000 Bonus: $4,000,000 (projected)
Total cash earnings: $18,347,436
All the links to this and more are at Sirius Buzz. Options are meaningless at this point if you cant sell them for a profit. So having the right to purchace 31 million options at a higher price is not what I would consider a bonus. You VicDave are an outrage and a lier once again.
Plus you moron, this shows that when compared to what he would have made at Viacom he lost almost 80 million in the same time frame. If he would have just stayed at Viacom.
ng
fjallfoss.fcc.gov/prod...
It basically says this;
Can you believe that the NAB is now saying to the FCC that satellite radio may push them out of the autos altogether. I thought they were just saying they did not compete with satellite radio. SIRI/XMSR, should start to repull old FCC filings where the NAB said they did not compete with satellite. While the NAB last filing maybe true, it shows the FCC that the NAB cant be believed about anything they say anymore. That they say whatever suits them at the time. I mean can they get it right, first it was, to investors they compete with us, then it was they dont compete with us, and now it is finally they may put us out of business. I hope SIRI/XMSR makes sure that they are exposed, while one would think that Tate is not that dumb, why take the chance.
Not bad for a company that is suppose to be out of business soon. You people know who I am talking to.