Your Report Card Is Your Stock Price? Guess Sirius Is Making Straight $.13's…
Your report card is your stock price.”
In November of 2007, shares in Sirius XM (SIRI) were trading at $3.94. Today they’re at $.13. Suffice to say, the company’s shareholder meeting tomorrow will be a critical one for the struggling satellite radio outfit and for CEO Mel Karmazin, who’s presided over its more than 85 percent decline in–some might say destruction of–shareholder value. And now, with $1 billion in debt coming due in 2009, and Sirius in serious danger of being delisted, Karmazin faces the uniquely difficult task of convincing ornery shareholders to back a reverse stock-split measure. If they do, the company will be able to put off that Nasdaq delisting notice that’s clearly been in the offing for some time now.
But it’s going to be a tough sell. Already, a number of investors are vehemently opposing the idea, among them, the Save Sirius coalition, which is pursuing legal action against the satellite broadcaster and its leadership for alleged violation of fiduciary duties.