Monday, June 12, 2006

TCW Concludes Sale of XM Shares

June 12, 2006

Satellite Standard Group keeps you informed.

This news has a negative as well as a positive aspect to it. Over the past weeks there has been selling pressure on XMSR. It would appear that some of that pressure came from TCW liquidating their position in XM Satellite Radio.

With the selling pressure of TCW now in the past, is this an opportunity for the selling pressure to relax, and XM to base? This could well be the case, and this would be welcomed news to the entire sector. Of course it is also possible that other institutions are selling as well, but having the biggest potential seller now off of the books is a big item to note. Investors may want to note the trading behavior over the next couple of weeks.

TCW used to have 27,000,000 shares of XM Satellite radio. In the first quarter they sold 14,000,000 shares. It would appear that they have sold their last 13,000,000 shares since March 31, 2006.

As of today TCW no longer holds shares of XM Satellite Radio. XM's largest shareholder is Honda with 29,000,000 shares.

Interested SSG readers can read the SEC filing HERE