Sirius XM's Karmazin Suddenly Selling Half His Stock, Sell any if you have it before,

Discussion in 'The Howard Stern Show' started by DogStar69, Mar 3, 2012.

  1. DogStar69

    DogStar69 Well-Known Member

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    It's worthless again. I think they know that the trend is that they are headed back to bankruptcy. Especially with the man that they paid the big money to fucking them and basically phoning it in for 2 days a week.

    http://www.forbes.com/sites/joanlap...y-selling-half-his-stock-but-not-until-april/

    During February, SIRI’s CEO Mel Karmazin announced plans to sell about half of his SIRI holdings. Remember, Mel had high priced options before he and David Frear, the CFO, almost put the company into bankruptcy in 2009 with some horrifically bad decisions on refinancing before Lehman went down for the count. So they gave the useless options back to the company in favor of lavish new ones at $0.43. That was after Liberty Media and John Malone swooped in with $575 million in loans and share purchases that left Liberty with 40% of Sirius XM now.

    Malone lives his corporate life (and one presumes his personal life, too) doing anything he can to avoid paying taxes. I’m sure one of the big attractions to Liberty when it saved Sirius XM was the latter’s huge tax loss carry forwards (otherwise known at NOL’s, net operating loss carryforwards) that can be netted out against corporate profits. But any change of control of an entity requires that 3 years elapse before a transaction unfolds that could unlock the use of those NOL’s. That 3 years is up in March 2012.

    So who would expect major liquidations of holdings at Sirius by the very insiders who were so well papered with options at the worst of times for the company and its shareholders? Malone was handed a fabulous gift with the company on its ear and it is highly likely that the subsequent grant of excessive options was part of the quid pro quo at the time. I’ll wash your hand if you wash mine.

    Consider some of the recent insider transactions of noteworthy size and the liquidation of a major filing position. There is clear expectation by those folks that Malone is not going to act soon and presumably nothing will push the stock higher.

    Patrick Donelly, VP sold 9.2 million shares at 2.10 on 2/23 that were based on $0.67 options. His cost $5.2 million and the shares were sold for $19.5 million even though the shares have an additional 7.5 years before they expire.

    The shocker was that on 2/17/12, CEO Karmazin announced that he “has adopted a trading plan in accordance with Rule 10b5-1 of the Securities and Exchange Act of 1934. The transactions that will take place under the plan are part of Mr. Karmazin’s strategy for financial planning in connection with his philanthropic efforts.

    “Under the 10b5-1 plan, beginning in April 2012, Mr. Karmazin is expected to exercise 60 million options to purchase Sirius XM shares. Shares underlying the options will be sold to cover the price to exercise the options and the remaining shares will be sold with the proceeds delivered to Mr. Karmazin.†(We added the bold type for emphasis.)

    “Following this planned sale of shares, Mr. Karmazin will still own over 68 million shares and options of Sirius XM.†True that’s not chump change but most of us could get by on the $135 million he will net out of the sale of the first half of his shares. And having watched the self aggrandizement over the last few years, we can fully expect the award of more options in the future.

    On 2/14/12, President Scott Greenstein exercised 6,942,034 shares of the delicious $0.43 variety that cost him $2,985,075 and that he sold at $2.15 for $14,953,141.

    We also learned in February that George Soros’ Soros Fund Management has liquidated its position in Sirius XM in recent weeks.
     
  2. gilaet

    gilaet Xanax Service Dog Staff Member

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  3. johnnyfuel

    johnnyfuel Active Member

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    The end is coming!!!
     
  4. MobyDick

    MobyDick Well-Known Member

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    how we went years without Gary and Mel comparisons, teeth, monkey, et al is beyond me.
     
  5. Big Biscuit

    Big Biscuit Well-Known Member

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    Is this a sign that Howard won't last his full five years?
     
  6. Sickboy

    Sickboy Latverian Monarch

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  7. treyphan77

    treyphan77 Well-Known Member VIP

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    Who is the bigger crook? Howard or Mel?
     
  8. whatsit

    whatsit Dawg Lover VIP

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    ^^^
     
  9. DogStar69

    DogStar69 Well-Known Member

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    I hope Sirius closes down on 12/21/12 like the Mayans predicted. :c
     
  10. gridlockd

    gridlockd Well-Known Member

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    Last edited by a moderator: Jun 23, 2014
  11. Shithead

    Shithead Well-Known Member

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    Ole Howie says he will drop his lawsuit for 100% of the company..
     
  12. wife is a whore

    wife is a whore Stripped of POTY for butthurting staff VIP

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    I think the Liberty guy is just waiting until he can get his hands on the satellites.
     
  13. Uncle Larry

    Uncle Larry Well-Known Member VIP

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    This isn't a good sign for the company - exercising those options for "philanthropic efforts" will buy Mel a lot of NSAL calendars and bling bones. Of the 68 million shares not subject to his trading plan, 60 million of those shares appear to be shares subject to stock options which don't even become exercisable until later this year. Mel needs to take a cue from part-time employee Howard Stern to be more dedicated to his Sirius/XM family.
     
  14. OV

    OV Rapscallion

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    No matter what you may think of his politics, when a savvy, opportunistic trader such as Soros divests - it's probably close to the time to turn out the lights!
    ,
     
  15. R.P. McMurphy

    R.P. McMurphy Well-Known Member

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    ...tax shelter ala 15 foundation.
    <insert blobins bald head>
     
  16. R.P. McMurphy

    R.P. McMurphy Well-Known Member

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    ...time to cancel subscriptions too. theyve been trying to get me back since i cancelled 18 months in. i saw the light long ago.
     
  17. TriumphVodka

    TriumphVodka New Member

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    [​IMG]
     
  18. DogStar69

    DogStar69 Well-Known Member

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    I like how Malone invested only to tale the loss to avoid paying taxes, instead they did well and he will have to pay his share, unless he found some other place to lose his money like investing in AGT.
     
  19. DogStar69

    DogStar69 Well-Known Member

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    My only wish is they go under so quickly that Howard's wig will spin when he realizes that he won't be getting his $60 to $80 million a year to work part time for the rest of his contract, and that no one else is interested in hiring a guy who pushed all his fans away in a weak stream of piss.
     
  20. Popeye Saavedra

    Popeye Saavedra Well-Known Member

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    Hahahaha...even if Howard wins his lawsuit against Sirius they are never gonna pay him..EVER. He will never get the money that he feels they owe him. And remember if Sirius completely tanks to the point of stopping service (which admittedly I doubt will happen) you aren't gonna be getting any kind of refund from them. Sell! Sell! Sell! LOL!!!