Karmazin Dreams: Sirius Boss 100% Wrong All The Way Down


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.

And last August, again:

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.