SIRIUS Bankruptcy (SIRI, SATS)

"Going, Going, Gone!"

Sirius XM Radio Inc. (NASDAQ: SIRI) is being mentioned in TheStreet.com, New York Times, the WSJ, and elsewhere as either “filing for bankruptcy protection” or that it was “near to filing for bankruptcy protection.”

I had just spoken with Michael Hartleib of SaveSIRIUS.org, a group he leads that’s critical of the company’s strategy.   Needless to say, Mr. Hartleib is not too happy. That was why he called us.

Sirius is part of our “companies that won’t make it” for 2009, which is a list of 10 stocks that have operating business but may file for bankruptcy protection or worse.  Bankruptcies are almost good for shareholders of common stock.  Not unless they need a big tax write-off against capital gains.

Hartleib has also noted some issues about conflicts of interest over the SIRIUS debt purchases by EchoStar Corp. (NASDAQ: SATS).

Jon C. Ogg
February 10, 2009