Cramer Backs Away from Sirius

Cramer keys in on Sirius Satellite Radio (SIRI) in "Merger Watch for Sirius" at TheStreet.com.

Jim Cramer noted that this warning out of Sirius is at a bad time, because it is more than 10 trading days before Christmas.  The logic there would seemingly be that it means the sales are going behind schedule far enough that that the last 10 days before Christmas won’t be able to come close to picking up the slack.  I think last year the company had a massive rush in the last 10 days of unit sales ahead of the holiday.

This also signals that he sees SIRI and XMSR as a merger that needs to happen again.  He even notes that SIRI is "done for" without a merger.

After reading his story on thestreet.com this morning, you can also probably blow out any dim candle light on hopes that Thestreet.com (TSCM) would sign any deal in the immediate future with a Sirius.  I thought that last week’s jettison out of terrestrial radio to focus on an ad-based "TheStreet.com only" model was potentially leaving some room for a Sirius deal if you use Cramer as an indicator on himself and his company. The verbage is too hard in his article now and there is no inkling of an out here that would show they really want a relationship at all.  It was a good thought, but that chance is probably gone for a long time if not gone for good.

SIRI is down at $3.87 right after the open, down more than 7%.  The 52-week trading range for SIRI is $3.60 to $7.98.  Shares are back to more than 50% off yearly highs.

Jon C. Ogg
December 5, 2006