TheStreet’s Take on SIRI/XMSR

Today 2 specialists sat in for Jim Cramer on WALL STREET CONFIDENTIAL at TheStreet.com about the XMSR/SIRI merger.  This doesn’t really answer how Cramer will warm up or not, but you can bet you’ll hear about that on your own later.  If you wish to check further you can click through to the second page.

These two feel that the regulators see a better chance of the satelliteradio deal being approved than there was in the failed satellitetelevision merger.  They said this is 16% below the real dollar value,so there is some fear that regulators could be strict.  They also givea modified playbook with an options collar by owning the stock and thenbuying puts and selling calls to lock-in a fairly narrow band.  You’llhave to watch the video for the exact strategy on this because they areusing more of a floating price on it.

Shares of XMSR are up 13% at $15.79, but shares have been as high as$16.36 today and $24.21 over the last 52-weeks; shares of SIRI are up7.3% at $3.96, but have been as high as $4.06 today and $5.57 over thelast 52-weeks.

Jon C. Ogg
February 20, 2007