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For Sirius (SIRI) A Trip To Penny Stock City

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Updated Published
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All sorts of bad things happen when a stock trades under $1. Some institutions can’t hold the shares. If the stock stays below the threshold too long, the Nasdaq can start delisting procedures.

Sirius (SIRI) hit $.99 this morning. Yesterday it put out guidance that Wall St. abhorred.

Sirius has run out of time and investor goodwill. The company’s subscriber growth will be so modest next year that the issue of the firm’s huge debt load gets larger and larger in the rear view mirror. Sirius can cut costs now that it has taken over XM Satellite. With its share price plunging, no one seems willing to buy the reasoning that 1+1=2.

Satellite radio’s dreams died some time ago. The reasons are so old they have become rancid. Leave it at the Apple (AAPL) iPod’s ascendancy — that is enough. The rest of the daggers are just extra instruments to draw blood.

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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