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Cramer Continues to Dig a Sirius Hole for Himself

by: Brandon Matthews August 18, 2008 | about stocks: SIRI    

Brandon Matthews

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Sirius XM (SIRI) stock has been up several days in a row. Personally, I thought we’d see another Goldman Sachs downgrade following positive reports from Citigroup and Merrill Lynch last week. Instead Jim Cramer has made yet another appearance regarding Sirius XM stock. No one should really be surprised, however, as Goldman Sachs last week added 814,465 shares to their portfolio, bringing their total holdings to 4,220,646 shares. It seems even Mark Wienkes' own firm no longer finds him credible!

So what are the hedge funds to do?  Good ol’ Cramer never lets them down, and he sure didn’t disappoint them this time. I want to point out that the first thing mentioned in this video interview was that Sirius XM was the most frequently searched stock within Jim Cramer’s website. It also seems to be the stock most talked about by Jim Cramer himself. Yet the first thing out of his mouth was to stop searching for Sirius XM. The reason this is so ridiculous is that thestreet.com cannot print an article about applesauce without mentioning Sirius XM radio. Why? Because it generates traffic. So be clear on this… Jim does NOT want you to stop searching.

He then proceeds to explain that investors should avoid Sirius XM stock until 2009. He offers a plethora of speculative reasoning to make his case. He makes claims that the bondholders will miraculously be able to keep shorting the stock, although as most SIRI followers know, there are no shares to short. He threatens future dilution through convertible offerings as though they are the only way to refinance old debt. Hey Jim, ever hear of loans? There are lines of credit available through the automakers such as the former XM enjoys with General Motors (GM). 

Now if Sirius XM has a better balance sheet come 2009 as expected, they won’t be issuing new converts, and the old converts will be covering their already shorted positions from 5 years ago. Merrill Lynch’s analyst states in a research report last week that: “As a worst-case, a $1bn convert with $1.50 conversion price could be an additional 17% dilutive, although we do not believe such a scenario is likely.”

Jim seems to have a problem understanding new debt vs. the refinancing of old. He should stick with stocks. At least he gets 1 in 10 right in that arena. If he took a look at the potential of Sirius XM stock, he would be screaming buy, buy, buy!

So why all the negativity and speculation? Well apparently Jim has gotten some death threats and it seems he has decided to bash Sirius XM in retaliation. Several weeks ago he was bragging about how he destroyed companies back in the 80’s, and yet this seems to come as a surprise to him. I don’t condone this type of behavior, but I have say: Jim Cramer, you might want to try keeping your mouth shut for once.

Disclosure: Long Siri

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This article has 59 comments:

  •  
    Aug 18 12:26 AM
    EVERYONE WHO HOLDS SHARES,, JUST BUY A SUBSCRIPTION TO SIRIUS XM... I have been putting bumper stickers on my car and advertising for them as well (FOR FREE) The more subscriptions they get eventually the stock will reflect that which would move it up. Ask ur friends to get subscriptions too! I have lost allot of money in this stock and I just want to break even! I will do whatever it takes! So buy some subscriptions!

    Good Article by the Way!
    Reply
  •  
    Aug 18 12:49 AM
    i know Jimmy boi is on CRACK....He's gone overboard and has intentions other than his own feeling for this company. He's just slaving right now because he's getting threats. Such a sissy boi, that Cramer
    Reply
  •  
    Aug 18 01:59 AM
    cramerica !!???? i think this guy is anti america. like your article said how he and the other wall st. people destroyed american companys. bethlahem steel, he also claim's it's the end for gm and ford and ofcourse our subject,siri. my wife just bought a new chevy hhr,(awsome car 30 mpg.!) and were gettin siriusxm installed. position, longverylongsiri!!!!
    Reply
  •  
    Aug 18 05:27 AM
    Kramer is right don't buy or sell on his advice. Check with your broker before investing. Lets face it Kramer's opinions on stocks can often have merit. But his program is really an entertainment program and his investment advice should not always be taken seriously. Remember it is your money at risk and therefore your responsibility to consider the future of the company you desire to invest your hard earned savings in.
    Reply
  •  
    Aug 18 07:10 AM
    I am happy to see someone has finally came to this conclusion. I do understand that Cramer has made some valid points over the course of his show. However I watched him for 5 minutes when he first started his show and as soon as he started with the theatrics, I have never watched him again or taken anything he says as credible. Anyone with a Brain can come to the conclusion that Cramer is an idiot. If you need sound affects and silly outfits to make a point then obviously your ideas are not strong enough to support them with the calm rational words that most everyone else on other shows have done for many years.
    Reply
  •  
    Aug 18 07:22 AM
    It is about time someone has written a scathing report regarding Crammer. He has destroyed some great little companies with all his rantings. He used to tout a company called Capstone and then bashed the heck out it. He used to praise SIRI and how great Mel K is and now he bashes it. I happen to believe in Mel K. and I believe this is a story stock. It is going to be a great company. Mel has done more for SIRI then it's predassors and has a proven track record. What ever happened to the American dream? Now the world is all about the almightly buck. Being a private company seems so much more real then all the corporate b.s. that has become the American way. We need to remember that we are the greatest country in the world and need to stop selling out the little guy for the sake of ratings, political agenda's, and personal vendetta's. Hurray for SIRI and at least it's better listening then radio. It's called freedom of choice and as a SIRI subscriber and stockholder I am proud to hold onto both and can patiently await for Mel's success and any other company that has a dream and a great business plan!
    Hat's off to you and the flack you will take for writing the truth. Finally someone with honesty!
    Reply
  •  
    Aug 18 07:29 AM
    Cramer is like a weather man - keep talking and guessing enough and you're bound to be right eventually. It never fails to surprise me the way this guy flip flops on stocks. One day he loves a company, three days later he hates it, then a few days later he loves it again and brags about how he said to buy it a week ago! Even a broken clock is right twice a day . . .
    Reply
  •  
    Aug 18 07:37 AM
    I like how Cramer admits when he is wrong like it is OK. I am a general contractor. If I recommend a new type of roofing for you to put on your home and it starts leaking after you spent $20,000 you sue me for not knowing my business. Cramer does this for a living. He should know all the possibilities on a stock or he should not give his opinion.
    Reply
  •  
    Aug 18 07:44 AM
    Cramer just had the CEO on his show and the CEO fed Cramer everything he wanted to say without him (cramer) saying it. Don't you guys get it? Cramer is backing the stock 100% and used his questioning on the show to prove it. If you take what cramer says and use it, you will be able to make your "OWN" judgement on stocks. When a guy is as smart as him you learn from them and then keep on learning through other great wisdom. Some people surely do not have to like Cramer but whats better then having a guy tell you what he did wrong so you can learn from it??!!? I know what he did right - its whats wrong that matters.
    Reply
  •  
    Aug 18 08:00 AM
    I love Seinfeld's Kramer. I despise Wall Street's Cramer. I refuse to refer to him by his first name, it makes it sound like he can be trusted. He cant. He should take his bells and whistles and clown cap and join the Circus where his true audience would appreciate him behind the monkey bars.
    Reply
  •  
    Aug 18 08:10 AM
    How! Jim Kramer is on CNBC! Along with a bunch of fools!
    Reply
  •  
    Aug 18 08:21 AM
    "BREAK EVEN ?" Dollar-Cost-Average-Do... to lower your cost basis then sell a potion of that on the peeks while still maintaining a position. Be patient it will come!!
    Reply
  •  
    Aug 18 08:22 AM
    Jim Cramer's "Mad Money"
    Buy Recommendations

    2008
    PERFORMANCE SCOREBOARD
    01/01/08 to 08/15/08
    TOTAL: 151* WINNERS: 67 LOSERS: 83 UNCH: 1
    Total Portfolio Performance: ** -2.35%

    WHAT MORE NEEDS TO BE SAID?
    Reply
  •  
    Aug 18 08:32 AM
    For those people making death threats towards Jim Kramer....find something more constructive to do with your time. There are many other stock opportunities in the current market, surely you did not put ALL of your eggs in one basket and are diversified. If you were searching for that "One Big Score" and putting all of your money in one stock the only person you can blame is the person in the mirror! Buying High and selling Low is not a good strategy and this company won't go bankrupt. Be patient!
    Reply
  •  
    Aug 18 08:37 AM
    Jim Cramer is a clown. He doesn't know his ass from Grand Canyon. About a year ago he said 'time to ring the register on oil', so I did. It cost me over $100K. Cramer is a fool and I was too for listening to him.
    Reply
  •  
    Aug 18 08:40 AM
    Your right Freep. Cramer is just a freek show. This is his business and is down -2.35%. What a idiot. I gave my broker at Merrill Lynch $26,800 when the market was down in April. He called me in May and said look how much money I made you when it went to $28,500 and now it is back down to $25,300. He made all the mutual fund pics. Just another expert that cant even make money when he is given money at the bottom of the market. Just goes to show no one looks after your money better than you.
    Reply
  •  
    Aug 18 09:00 AM
    Jim crack head Cramer calls bottom, again.

    Great Video:

    jimmydoomsday.blogspot...
    Reply
  •  
    Aug 18 09:08 AM
    Sounds like Kramer is being racked over the coals. But then who is laughing walking over to the bank. I am sure the company has been paying him big bucks for all his theatrics. Investors don't need advice from one who gives the impression that he knows it all.
    Reply
  •  
    Aug 18 09:15 AM
    Cramer also said, in the video, that he had stated if the FCC stalled much longer it would really destroy the stock, he used this as justification for flip flopping. Again he knew all this before what made him do a complete turnaround? I know money talks and BS walks. Just makes u wonder who he is in bed with...What a jerk.
    Reply
  •  
    Aug 18 09:22 AM
    Cramer is a genius! He takes both positions on the stock, so that no matter what happens, he can say he was right. He'd make an incredibly successful politician.
    Reply
  •  
    Aug 18 09:39 AM
    Cramer, some people think your show is entertaining. You really just have a big mouth and are loud! Your mantra is squeaky wheel gets the grease. From Goldman Sachs that is.
    Reply
  •  
    Aug 18 10:03 AM
    Wouldn't it be refreshing to see Cramer or someone else start posting exactly WHO is shorting SIRI large volumes of shares on a daily basis so that some of this speculation over debt blah...blah... could be substantiated without so much opinion. Why is there insider transparency but no transparency (without a huge amount of work) to determine who the puppetmasters of the stock market really are. Daily volumes are not enough. Clear and accurate explanations are needed.
    Reply
  •  
    Aug 18 10:04 AM
    rock on brandon matthews, rock on
    Reply
  •  
    Aug 18 10:12 AM
    I blame the FCC for doing this injustice to us and our companies. They should be ....... and make restitutions to the company they nearly destroyed. Restitution on the lines of a billion dollars or however much it cost in lost bussiness and legal fees..... They (FCC)did this because the competitors(nab) paid to have this done. What happened to government for the people.....? So as to Cramer, I give him the same 2 letters that I say when I think FCC, and that is FU!
    Reply
  •  
    Aug 18 10:15 AM
    Please, can someone confirm my observation that Cramer kept silent on his show "MAD MONEY" and screened out all callers regarding SIRI/XM for nearly 8 weeks starting 6/16/08 till a few hours before the merger announcement? This is the same man who bashed the merger delays many times weekly and had many callers call in weekly. A man who took this merger so personally that he had a calender on the shows wall. The same man who stated that this was personal and he is for the little guy. Why then did Cramer clam up at the most critical time of this possible merger and leave the little guy hanging? Please look back at the show archives during this period and tell me if I'm wrong.
    Reply
  •  
    Aug 18 10:24 AM
    Yeah I stopped watching Cramer a long time ago...One guy who has been on the money for me is Carter Worth. He sometimes appears
    on Fast Money. I have followed two of his recommendations
    MT for a 30% gain and he called a short on JLL for a 20 percent
    gain. He uses a metrix system to determine which way he plans
    to invest in a stock and he has been pretty solid in his picks compared to Mr. Cramer who recommends a stock and then when his callers call in to tell him they lost 30% on his recommendations. He tells them to do homework when he is running around on his like a madman when he recommending a stock. He is the biggest contradictor on television and that was my main reason for not tuning in anymore.
    Reply
  •  
    Aug 18 10:39 AM
    I've made some good money on some of Cramer's advice.

    Sure, he is not right all the time. You just have to also do your own research.
    Reply
  •  
    Aug 18 11:22 AM
    I don't think Cramer is acting on his own, IMO he gets alot of pressure from Institutions that's why you see him flip flop, being a smart investor follow your instincts, If you believe into the company hold on to it. Like I do.
    Reply
  •  
    Aug 18 12:01 PM
    I have a prediction and please please do no forget my name or what I said here today: Cramer will go away with his head between his legs. He will ashame himself or something bad will come out about him that will make him look like the idiot he is. do not forget, watch and have patience. he will run out of viewers. before I even knew this guy, a friend told me about him about a year ago. I watch his show and I told my friend that this guy was so full of shit, he make Bush and Cheney look like the Pope. Now after just a few months of me pointing things out to my friend, he does not want to even turn CNBC. He was being entertain and did not realized the bull shit he was getting into his head without realizing it. Becarefull with that kind of entertaintent, it can damage your brain. I am marcopolodecuba at yahoo dot com
    Reply
  •  
    Aug 18 12:11 PM
    Who cares. He is never right anyway.
    Reply
  •  
    Aug 18 12:32 PM
    If we're bashing Cramer then we need to bash everyone like him. He may be the most visible stock jockey out there but, in essence, he's doing exactly what normal people are doing right here on Seeking Alpha. He's got an opinion. I've got an opinion. Sometimes they're the same, sometimes they're different. Anyone who bases their trading solely on what Cramer is screaming about on CNBC gets what they deserve.
    Reply
  •  
    Aug 18 12:34 PM
    Whoever made death threats against Cramer is an idiot. I think Cramer gives a lot of bad advice and some good advice, but ultimately you make your own investment decisions. Blaming Cramer for buying a bad stock is like blaming a movie reviewer after going to see a bad movie. I understand being mad at him over the stunt he's pulling with SIRI, but death threats are ridiculous and totally irresponsible.


    Reply
  •  
    Aug 18 12:48 PM
    "Disappointed American" You are dead on about the FCC, the only reason it took over a YEAR for the merger to happen is due to lobbyist from Clear Channel, etc. pay offs to Congressmen, the 5 person decision board and any others who could continue to throw up road blocks. Their constant stating SIRI would have no "Rival's" if the merger were to go through. BS, why would Clear Channel, FCC, etc. call in every favor possible to delay and hopefully kill both SIRI and XM. The stipulations that were forced on SIRI are a joke, forcing them to meet off the wall absurd requirements, the mandatory minority stations, price freezing, etc.. Why aren't these same requirements force on "Terrestrial Radio" ?? too bad Congress doesn't do this to the Oil companies I wonder why they don't...$$$$ or how could a legit Congressman not vote to look into the Halliburton no bid contract(s) and the gouging tax payers, or the sub contracting jobs that are never completed or done so shoddy that it has killed US servicemen (electrocutions, etc) HAL - September 2002 $6.45 per share, July 1, 2008 $ 53.91 over 825% increase in the profiteering war stock. Issues like these are unimportant, the FED's throw all their effort and our $$$ to delay and hopefully defeat satellite radio. Remember when we at least thought we could semi have faith in our govt.????
    Reply
  •  
    Aug 18 01:18 PM
    Cramer is the equivalent of a modern day Dan Dorfman. Cramer can only practice manipulation. His credibility is zilch.
    Reply
  •  
    Aug 18 01:35 PM
    I, as many others, question Cramer's credibility. It is at least safe to say that he has pressure from numerous institutions. He can continue to bash SIRI as long as he wants but they are plenty of people out there that have faith in the company (www.predictwallstreet....). SIRI will inevitable have a bumpy ride in the upcoming months, but they will be able to pull ahead in the end.
    Reply
  •  
    Aug 18 03:11 PM
    400 million in saving becuase of the merge. Subscriber counts oing up via retail. Chren going down. The markets/economy in general are crap... give it time.
    Reply
  •  
    Aug 18 04:44 PM
    I share your opinion to the Tee. Now all you have to do is call Cramer and tell him this in person. Also your right about him guessing correctly on one for every ten stocks. I lost a bunch of money on a lot of his "can't lose" recomendations.
    Reply
  •  
    Aug 18 04:58 PM
    We all know about JC but I lvoe this article. Check the date

    moneynews.newsmax.com/...

    additionally, he was wearing a caution sign at the absolute market low in March....someone should post the cnbc video of it . Hilarious!
    Reply
  •  
    Aug 18 05:19 PM
    I think twice when I hear this guy recommending some stock I own. I know that it is time to sell. My opinion is--whatever he recommends--sell it or short it.
    Reply
  •  
    Aug 18 05:21 PM
    Cramer is an entertainer and a FRAUD. He can no longer buy stocks personally because of his show / CNBC contracts but still manages his "Charitable Trust". Check what he calls "Best of Breed" against what he owns in his charitable trust and I don't care which caller it is he tells them not to by their company but His "Best of Breed" withing the industry which is always owned by his "Charitable Trust". You got to check out Muley 101's link if you want to see how wrong, and hyped at the same time this guy can be. (Thanks Stan)
    Reply
  •  
    Aug 18 05:37 PM
    Cramerites need to read the CNBC disclaimers: Invest at your own risk.
    CNBC is in bed with some of the radio stations that siri is crushing, what did you expect. Do I need to tell you the "Frog and the scorpion" story...


    Shhhhhhhhhhhhhheeeeeez... Buy what Warren Buffett does (kmx) has been down since he bought in but at least you know he's done his homework on KMX. Sure on average you can lose on Buffets picks but at least they won't go under.
    Reply
  •  
    Aug 18 06:05 PM
    Cramer for months told us to write and call our Congressman, FCC and Senators on the Merger. How bout all of us stop watching CNBC and the Mad Money. Who can we write and call to make this. He screens his callers for sure. There must of been thousands of call the last 8 weeks before the Merger. He is a Fraud and doesn't when he is lying or telling the truth.