XM Satellite Radio (NASDAQ: XMSR) is recently down 24cents to $11.87. XMSR and Sirius (NASDAQ: SIRI) announced in February 2007 a merger of equals. XMSR shareholders will receive 4.6 SIRI shares for each XMSR share.
The Department of Justice (DOJ) is expected to make a ruling on the SIRI-XMSR merger soon. Wachovia Securities say's "Weak Satellite Radio Trends continue." XMSR March option implied volatility of 135 is above its 26-week average of 93 according to Track Data, suggesting larger price movement.
Volatility Index S&P 500 Options-VIX up 1.78 to 25.36.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.
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Reader Comments (Page 1 of 1)
2-29-2008 @ 12:29PM
John Hardy said...
How bad is our CONGRESS!!! they won't even let this deal through because they're so corrupt. They are taking bribes from local radio stations because the government is scared of a monopoly. Does anyone think the deal will go through Saturday? If so, should I hold my shares over the weekend @ 3.03? BOOYAHHH!!!!!!!!!!
2-29-2008 @ 2:30PM
Sims said...
Hold on to those shares of Siri because no matter what happens there will continue to be new subcribers. You only need to listen once to this new world of radio, as I did when I leased a car for the weekend and experienced it for the first time, you will never want to go back to regular and limited radio programing. Better still, buy more while the price is right.
3-03-2008 @ 10:32AM
JACK said...
Since the FCC and DOJ are taking their sweet time in making a decision on the merger, I have an alternative idea that could be proposed. If it is made public, it would turn heads at the two agencies. It could get the ball rolling, and put them on the spot. The plan would be for example, the subscriber to SIRIUS @ $12.99 could receive XM subscription @ $6.99 and visa-versa.
The number of subscriber to each companies would increase, and it would tell the people in Washington that the people want it to happen.
You will have to buy the extra radio, but it is a small price.