Monday, February 12, 2007

The SEC Asleep At The Wheel...?

Just last week, Goldman Sachs (which operates like a hedge fund, and we all know that the SEC is scrutinizing "front running" by hedge funds) disclosed a 6.4% stake in XMSR. The next thing we know, Goldman is increasing the price target on XMSR to $15.

Live In Play, XMSR XM Satellite: Satellite radio fundamentals remain challenged and will hit more speed bumps near term - Goldman (13.44 )
Goldman Sachs believes satellite radio fundamentals remain challenged and will hit more speed bumps near term before entering a two- to three-year window of opportunity to solidify a position in consumer-supported media. Firm says with consensus forecasts still too high, they think XMSR and SIRI valuations will remain volatile. Firm notes that widespread merger speculation in the media, in part fueled by management commentary, remains the key driver of stock prices. Firm thinks both equity valuations already factor in some of the likely synergies of a merger. With merger approvals uncertain, they think investors need to weigh current valuations against the sum of expected values of a merged entity, with consideration paid to what they find to be an irrational value transfer at a 50/50 split. Firm raises their XMSR tgt to $15 from $11 and cuts their SIRI tgt to $2.75 from $3.50.

2/12/2007 03:05:00 PM

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  • I am an investor from Canada....NASDAQ seems so corrupt....blind eyes everywhere!!

    By Anonymous Anonymous, at February 12, 2007 4:23 PM  

  • As a SIRI shareholder, I thought the same thing today, but what can an individual shareholder do? How can the SEC be notified?

    By Anonymous Anonymous, at February 12, 2007 4:26 PM  

  • The SEC turns a blind eye to the largest corrupt institution in the world, the U.S. Stock Market.

    By Anonymous Anonymous, at February 12, 2007 4:50 PM  

  • I think GS took this position on 12/17/06, if so, how long should they wait before publishing an opinion ? .. days ?

    By Anonymous Anonymous, at February 12, 2007 6:04 PM  

  • What is the difference between this and Merrill Lynch hiring an analyst who will give them a pro-SIRI analysis in order to capitalize on SIRI's immense number of outstanding shares (at a time when SIRI is the most actively traded issue on a near-daily basis)?

    If you want to view one as self-dealing, you would have to view both in the same light -- both efforts to make money by manipulating analysis.

    And to be fair you would have to attack every brokerage house in existence for doing the same.

    You can certainly make the argument that Goldman would not have taken the position if they didn't believe the stock was going up. There is no such explanation for Merrill hiring Mancini other than to capitalize on the heavy trading in SIRI.

    By Anonymous Anonymous, at February 12, 2007 7:48 PM  

  • How can Goldman Sach, prefer Xm over Sirius; while Xm is acquiring less subs in 2006 than they did in 2004 two years ago. They are up to their neck in lawsuits, with their shareholders and the Riaa. They are losing big time marketshare to Sirius. They have markedly inferior content. Over 60 percent of the retail buyers, prefer Sirius, that is pretty convincing.

    By Anonymous Anonymous, at February 12, 2007 11:16 PM  

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