Pandora Media, Inc. (NYSE: P) is one which we were skeptical on and we warned investors that it was a value hat trick, but not just because of its business model.  This was a Wall Street trick and investors fell for it.  The company raised literally about twice what was originally anticipated.  Only about one-tenth of the company’s authorized shares are in the float.

Now it is trading under $16.00 IPO price after what appears to be a po
st-IPO peak price of about $26.00 yesterday.  We saw over 40 million shares trade hands yesterday when just 14.7 million shares traded hands.  You know that only a portion of those shares were resold by IPO-flippers.

If Pandora did accomplish one thing, it seems to have helped drive down SIRIUS XM Radio inc. (NASDAQ: SIRI).  SIRIUS XM is back under $2.00 at $1.93.  It turns out that all that conviction from short sellers has started to win for them.

At 10:23 AM EST we see that 5.2 million Pandora shares have traded and the stock is down 9% at $15.85.  UPDATE: Shares closed at $13.26 with a drop of 23.8% today!!!

Enough said.

JON C. OGG