Sirius XM Stock Drops Below $1 After Karmazin Talk
September 10, 2008 at 1:59 PM (PT)
MEL KARMAZIN's talk to investors received an icy response from WALL STREET WEDNESDAY, with shares of SIRIUS XM RADIO dropping below the $1 mark in morning trading. The stock opened at $1.11/share and quickly fell to 95 cents, joining WESTWOOD ONE and WORLDSPACE as radio stocks in penny stock territory. As of 11:10a ET, the stock had dropped to 91 cents/share, off about 20% from TUESDAY's close, and sat at 96 cents/'share (off 16.1% from TUESDAY) at 2:20p ET; it closed at 98 cents/share, 14.04% off TUESDAY's close. The stock's 52 week high was $3.94/share, and the stock at its low of 90 cents WEDNESDAY had dropped 41% since the SIRIUS-XM merger was consummated.
KARMAZIN's talk at the MERRILL LYNCH conference in MARINA DEL REY charged that radio "sucks today" because growth stopped, and the SIRIUS XM CEO took shots at CLEAR CHANNEL, which he noted is the only radio company generating more revenue than his company, but "we know they're not growing." He also announced details of the a la carte and cross-platform programming packages promised as part of the companies' merger.
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