Sirius XM (SIRI) investors bailed on the stock today, sending shares down 52% to 5.5 cents, as the debt-laden satellite radio company reportedly considers bankruptcy (or a last minute bailout from EchoStar mogul Charlie Ergen).
But things weren’t always so grim!
Recall Sirius boss Mel Karmazin’s words last December:
“We are still engaged (in refinancing talks). Nothing has changed,” he said at a Reuters conference. “We’re still optimistic we’re going to get that piece done.” And: “You should assume the company is not for sale.”
And last October:
“I believe we’ll be able to refinance it, even in this market,” he told a Dow Jones conference. “I am confident that we will get that done.”
And last September, when he joked about lending the company $300 million when its debt came due in February (now):
there has been “a tremendous overselling of the stock” and that his company “is heading toward making a bunch of money in the future.”
And last August:
“The tough part is over,” referring to his merger with XM.
When he bought 2 million shares of stock.
And last July:
Faber: The stock price is very low.
Karmazin: It sucks.
Faber: It’s a very low price. Forget market cap. Are you going to do a reverse split? It’s embarrassing to look at something that has a one in front of it.
Karmazin: Well, it’s embarrassing, and I hope that we’re not going to have to look at something with a one in front of it for a long time. [He didn’t. The “one” soon disappeared forever]
We wish the best to Sirius XM and its shareholders. But this one doesn’t look good — even if Sirius does make it out of the firing range.
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