Tuesday, September 12, 2006

CRT Capital: Conflict Of Interests?

CRT Capital continues to reiterate their SELL opinion in the satellite radio space...an unusual time of year to be negative, heading into the launch of Oprah, "high-holiday" selling season, NFL, etc., and an unusual time in the business cycle, as expectations are quite low as reflected in the stock prices of both Sirius and XM. It is my understanding that the firm has a short position in the sector, which leads one to believe that there is indeed an inherent conflict of interest.

Here's what crossed the wires today:

"Sub growth expectations too high, reiterate Sell on XMSR & SIRI@CRTC - CRT(theflyonthewall.com 09/12 09:08:32) Capital believes expectations are "dangerously preoccupied" with near-term catalysts (i.e. new retail product releases)."