XM and Sirius Stock?

Question

I bought some SIRI @ $3.87 now @ $3.30 what should I do? It seems to be going down down down

Answer 1

If the Sirius-XM merger goes through (and there's a reasonable chance it may not), maybe it'll go up. Maybe not.

If the merger doesn't go through, expect to see a drop. However, if Sirius outlasts XM, they will have a monopoly and the stock could rise.

Why sell at a loss?

Answer 2

you bought the wrong one. XM was your play (they won the war) plus you'll get 4.6 shares of every one xm you own. Once the merger hype died down so did the stock. Siri will have a hard time breaking $4 again and $13 where XM is at? Forget it.

I would take the loss XM is a good buy at this range.

Answer 3

I haven't been paying that much attention to the deal so I can't comment on it directly, but in general...

Stocks move for two reasons:

1) The perception of the long term outlook for the company changes.
2) Because they can.

Sirius may simply be going down because its going down. If this is the case its likely to move in the opposite direction sooner or later. Your job is to figure out whether the company will be viable after the merger or not. If it is keep the stock. If it isn't sell it.