DrMyers’s Blog

June 2, 2009

Are you Sirius?? One Stock that will Shock you!

span>sirius-xm_mergerAfter the serious upset on Wall Street, questions began to be asked by many Americans! Just as his two predecessors did before him, President Hoover went to the Secretary of the Treasury Andrew W. Mellon (who would be considered a modern day Warren Buffet) to no avail. It had been speculated that “Short Selling” (the anticipation of making a profit from declining prices…expecting a drop in price. Selling the stock and buying it back later at a lower price leaves the difference as the profit). On November 23, 1929, The Economist asked: “Can a very serious Stock Exchange collapse produce a serious setback to industry when industrial production is for the most part in a healthy and balanced condition? … Experts are agreed that there must be some setback, but there is not yet sufficient evidence to prove that it will be long or that it need go to the length of producing a general industrial depression.” History later revealed that the experts were wrong, and it would only be World War II that would bring us out of the depression caused to the improprieties of those on Wall Street.


 


Just as the Economist was misguided, or shall we say wrong, in its publication almost eighty years ago, on Feb. 10th, the New York Times Reported that Sirius XM was in danger of filing for bankruptcy (implying a dire situation). Coming from such a trusted source (with its own stock dropping at the time, and the next month laying off 100 employees, cutting the salaries for the rest of the year by 5 percent) many share holders were surprised to hear that the company they had bought stock (NASDAQ: SIRI) at inviting rates, were decreasing while the company itself could boast in growth with a successful merger and an increase in subscribers. Something just was not adding up!


While the New York Times was letting go of employee’s, a press release came from the Sirius XM, with this quote from its president, “In the fourth quarter 2008, the company’s first full quarter of combined operations, SIRIUS XM made remarkable financial progress…For the first time in company history, we reached positive pro forma adjusted income from operations of $32 million, as compared with a loss of $224 million one year ago. Fourth quarter 2008 revenue of $644 million grew 16% over the year ago quarter while total cash operating expenses declined by 22%, a clear demonstration of our focus on improving profitability. Despite challenges in the overall economy and in the auto sector, we look forward to continuing to deliver on the synergies of the merger.” Can anyone remember what was happening around the last quarter of 2008? I can tell you! 1. GM, Chrysler, and Ford stood before Congress requesting a “Bail Out” 2. Bernie Madoff caused Billions of Dollars worth of damage to the pockets of investors due to his Ponzie Scheme and 3. Lehman Brothers was liquidated! What FACT would cause The New York Times, MSNBC, and other news channels to predict the demise (or bankruptcy filing) of their “Competition”, resulting in apparent stock fluctuations in the market?

With GM and Chrysler both declaring bankruptcy, common shareholders within Sirius XM Radio are asking questions, demanding answers, and not allowing other media outlets determine their fate, and why would they? With subscription rates second only to Comcast, Sirius XM appears to be a “Leader” in the industry, with no signs of letting up and neither is Liberty Media. Liberty Media CEO Greg Maffei stated, “We are excited to be investing in Sirius XM. We have been impressed with the company, its operations and management team…Sirius XM’s ability to grow subscribers and revenue in a difficult financial and auto market is indicative of how listeners view this as a ‘must have’ service.”


This “Must Have” service is being defended in the new documentary “STOCK SHOCK: The Short Selling of the American Dream” http://stockshockmovie.com/ . Directed by Sandra Mohr and Narrated by Richard Keane, it appears as if they are taking pieces of the puzzle from Stock holders, industry professionals, pages of history, a glimpse of the future, and are carefully putting them all together. This documentary expounds upon how easily the public can be, and has been fooled by propaganda initiated through the NYSE, profiting only a few while causing millions of others to lose countless hours of sleep and money!


This documentary reveals the not so obvious future that many, who are in competition with this service, would rather the people overlook; Sirius XM Radio will be around as long as the United States Government is backing automobile warranties and IPhones are giving subscribers the option to listen to this service outside of the car. It is the observation of this blogger that Sirius XM will be taken much more Seriously within the upcoming months. With both Michael Moor (Untitled production and currently filming) and Oliver Stone (“Money Never Sleeps” in Pre-Production) preparing to come out with films, also dealing with the American Financial system in some aspect, “Stock Shock” appears to be a precursor to many untold truths finally revealed this year!

Perhaps a President who silently guided America through the “Roaring 20’s” could share some basic truth upon our situation:

Former US President Calvin Coolidge

Former US President Calvin Coolidge

“After all, the chief business of the American people is business. They are profoundly concerned with producing, buying, selling, investing and prospering in the world.”

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3 Comments »

  1. Decimal Place Trading caused the recession of 2008
    This recession was caused by the manipulation of stock prices on Wall Street through naked short-selling, flash trading, high-frequency trading, secret software, super-fast computers and what I feel was the main cause of this corruption: “Decimal Place Trading.” As I write this article today, much of this corruption is now slowly coming out through social media outlets such as Twitter and Facebook, along with bloggers on the internet, Yahoo bulletin boards, and the movie Stock Shock. The news media is also to blame for what has taken place in this country — including the near-collapse of Wall Street and the banking industry.
    There are many things to point fingers at or place the blame on, and I can think of a few off-hand that I would like to cover — the first being Wall Street’s regulation changes. I am no expert — I am not even a writer — but decided to tell this story since the business news media was not telling it. These Wall Street regulation changes contributed to the aforementioned problems in many ways, with the first being the removal of fractions in stock pricing. On January 29, 2001, the New York Stock Exchange, or NYSE, went to four-decimal-place trading. On March 12, 2001, the National Association of Securities Dealers Automated Quotation, or NASDAQ, followed suit. This new rule had the best of intentions as we headed toward the computer and digital world, but over time it was manipulated and companies like Goldman Sachs figured out how to take advantage of the new system. I am not sure how it happened, whether it was lobbied for years or what — but along came the biggest mistake of all with the elimination of the uptick rule in July of 2007. This rule had been implemented after the great depression, and had been in place since 1938. How could the Securities and Exchange Commission, or SEC, abolish a rule that had been in place for close to 70 years, and had worked? Put these two changes together, and you get a simple equation: greed plus corruption equals recession.
    Reports have been released on the web that Goldman Sachs made over 100 million dollars per day in 46 out of 64 trading days in Fiscal Year 2009, second quarter (April, May and June). Let me say that again. They made over 100 million dollars per day, and are still doing it as I write this letter today. But the question remains, how did they do it? There has been no report of this by any of the news media. How can this be? This corruption is 100 times the gravity of the Bernie Madoff story, and yet there has been no coverage by CNBC or Bloomberg News. Why? Goldman Sachs, upon Wall Street transitioning to fractions and the abolishment of the uptick rule, designed secret software and used this software to gain an advantage on every potential investor. Basically, Goldman Sachs became a Las Vegas poker dealer in New York City on Wall Street, turning profits on investors every trade with their super-fast computers and software.
    Richard Keane August 26th, 2009 Revised version

    Comment by Dick Keane — August 29, 2009 @ 3:08 pm | Reply

  2. well this Are you Sirius?? One Stock that will Shock you! « DrMyers’s Blog superb.
    This one also have some nice stuff source2update.com

    Comment by SAMTA RATHORE — January 5, 2010 @ 1:55 am | Reply

  3. well this Are you Sirius?? One Stock that will Shock you! « DrMyers’s Blog superb.
    This one also have some nice stuff source2update.com

    Comment by RAKHI JAIN — January 5, 2010 @ 3:17 pm | Reply


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