I bought Sirius stock at $7 and now it is at $3.78 OUCH!?

Question

I hear they are merging with XM, should I hold out?

Answer 1

There is virtually nothing to recommend either stock or the two merged together. They are bleeding cash like mad. Although Sirius has announced they are cash flow positive. I doubt it but they announced it. They sort of remind me of Global Crossing.

Answer 2

neilnelson,
Imagine you sell it at $4.50 and only lose $2.50 a share. Then the next day it merges with XM and skyrockets to $20.00. You're gonna feel very bad! Now imagine it goes to $1.00 and the company closes forever. You're gonna feel good. With the stock market, you never can know whats going to happen. It is all a gamble. If I were you, I would keep on holding. You're not going to lose any money for sure until it's sold. Here is my suggestion:
Figure out how the company is doing. Maybe they are introducing a new product or something. If they aren't doing very well, I would wait until it goes to $5.00. If it isn't doing bad, then wait 'til it goes to $9.00 or something. Just play safe and don't get too risky!

-The Mackster

Answer 3

The stock market is for the long term. Buy more. I just bought 500 shares at about 4 and change. Lost a little. I expect it to be worth a lot more in ten years. I don't know about the next few months. I'm not worried about it either. If you don't have some good index mutual funds you shouldn't be in individual stocks anyway. I'd hold it and forget the merger talk. They should be profitable eventually. If they're not, oh well. Everyone loses money sometimes.

Answer 4

You should have had a stop loss at 7% like the pros say. Now look what you've done!!

If I were you, I would hold out now since your down so much. May take some time to come back, but better than selling and losing half your money. You don't lose anything until you sell so hold.

Answer 5

Take your loss and run. The companies are not merging. Sirius is bleeding cash and they have enough money for about 1 1/2 years (according to their balance sheet) until they run out of cash and will be bankrupt.

Answer 6

NO, Take your loss, and tax deduction NOW. Sirius and XM are hemorrhaging money and will be for years to come. If the stock doubles, which is in serious doubt, you've only gotton back to where you started. You'd made more putting it in a CD.

Answer 7

they are NOT merging. Your lesson here is stop losses you should of put a stop loss at $6 or at the very worst $5. The FCC will not allow a merge and both systems are pretty much maxed out right now as far as capacity.

Answer 8

initially .. there is not any recession.. effective the economy isnt in tremendous structure yet our GDP has been claimed contained in the effective for both between the merely correct 2 quarters.. we cant call this a recession till adverse GDP is revealed for 2 instantly quarters.. in any case>.. as for SIRI im installation a decrease order for a pair grand properly worth about 1500 -2000 stocks at $2.50 .. why no longer? the inventory has hit close to its fifty 2 week low.. at 2.sixty 2... above by technique of 25 cents.. i assume that hype of the buyout would run the replenish.. a minimum of for an afternoon or 2.. tuesday and wednesday should be strong.. the dow is waiting for a bump up .. i am going to experience the wave.. attempt to promote both earlier undesirable information or correct after the strong information..

Answer 9

I would sell and use this loss to offset gains in other stocks.My advice is to always cut your losses early and remember a 50% loss requires a 100% gain just to get back to breakeven.Do you think this stock is going up 100% any time soon?Even if there was a merger all you have is two companies combining massive losses.

Answer 10

That is bad, but I have seen ten times worse. To answer your question I will supply you a with a link to an article that ends the speculation and any possibility of a merger between the two. Read and draw your own conclusion.