by John Paczkowski
Posted on September 17, 2009 at 2:21 PM PT
Ugly news for Sirius (SIRI): With a share price that has closed below $1 for 30 consecutive business days, the company has fallen out of compliance with Nasdaq listing rules. In a notice issued earlier this week, Nasdaq gave the company until March 15, 2010, to comply.
So the question now is: Will Sirius now move ahead with the reverse split its stockholders approved back in May?
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John Paczkowski has been poking fun at the tech industry and the personalities that drive it since 1997. From 1999 to 2007, he wrote the award-winning tech news Web log Good Morning Silicon Valley for the San Jose Mercury News, Silicon Valley's daily newspaper. Read more »
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Comments
Sirius has no choice but do a reverse split. Sirius is like whipping a dead horse,I dont beleive it will ever be a viable company. I look for china to buy them, why not? Perhaps they could make a go of it.
Posted by thomas wandless at September 18th, 2009 at 4:59 amSIRI has been trading below $1 for a lot longer than 30 consecutive business days. Nasdaq gave the company until March 15, 2010 because they know that is enough time to pull above $1.
So the question now is: Will Sirius now move ahead with the reverse split its stockholders approved back in May? Not if the Q3 results are what is expected. Turning a Q3 profit shows a good sign; it’s that more about managing the debit than the company not being positioned well for the future. Lessons have been learned for the creation of the debit. They just need to get rid of it. Which they are doing, albeit slowly, but are doing it. A Q3 profit will drive the stock above $1…even if it is on speculation.
Too many good things are starting to happen at SIRI. Eatery’s and retailers are now bringing SIRI into their ops and $12 a month is a small price to pay to build the right shopping experience. Plus local radio is all but a dieing breed. Not dieing as fast as newspapers but dieing.
The programming is solid and gives a value you can’t get elsewhere. With no direct competitor they are set to go forward. Synergies from the M&A are showing that it has made this a good model. Standing alone, I agree, it would struggle long term.
CFC will help short term subscribers numbers for Q3 & Q4.
The likes of Yahoo, Pandora, etc have starting charging for portions of their service. That has been one thing that has kept the household business at bay for SIRI. They are opening the door for SIRI to gain share in that platform.
Posted by Skip Meyer at September 18th, 2009 at 9:49 am