Short sellers showed an odd sort of faith in Sirius Satellite Radio (SIRI) or in the already low price of its shares anyway. Short interest in the company’s stock fell 22.2 million shares in January to 118.9 million.
No matter what the company seems to do, the shares remain stuck in a hole under $4. The company has announced solid subscriber numbers for the end of 2006 and says that its operations will be cash flow positive for the fourth quarter of last year. And, rumors continue to swirl that SIRI might merge with its only direct competitor XM (XMSR).
SIRI stock has a 200 day simple moving average of $4.11, and perhaps some in the market believe that the stock has found a bottom. It may not move up much, but the shorts may not need it to.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
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