10 CEOs To Go For 2009: Mel Karmazin of SIRIUS XM (SIRI)
It is December, and it is time for many companies to review their existing plans and decide to make some major changes in 2009. SIRIUS XM Radio Inc. (NASDAQ: SIRI) now stands at a critical juncture, and this is a call which will not come about easily. It is also a call which may be one of the more controversial calls out there. It is time for a major change at SIRIUS XM, and that change needs to be the ouster of Mel Karmazin as CEO.
For a backgrounder on criteria, we do not name a CEO with the title of "one who needs to leave" just on share price alone. This call is also not just because the growth ahead will be less than many have hoped and less than what Karmazin had predicted. The call isn't even based upon the great possibility that even that lowered growth target may have to be reduced again. This is also not personal because we have had no dealings with the company nor with Mr. Karmazin. But there has been serious destruction of investor wealth here which cannot be ignored. The only recent investors who have made money are those who sold shares short.
If you go through the list of 2008 CEO's to go, almost all of those called out have moved on by now. If you go through our list of 2007 CEO's to go, you'll see that most have hit the road.
Mel was deemed a hero when he came over and was credited as the key reason that Howard Stern landed at SIRIUS. So he does deserve a large part of the credit for the company's early growth. But Stern's massive pay package came when shareholders were already feeling a major pinch, and that may have been the first straw putting pressure on the camel's back. That prior success was short-lived and has since turned into a shareholder disaster.
We predicted the path to merger in late 2006 and even suggested that either XM head Hugh Panero or Karmazin would go when the new company launches. Panero was the one who left. And Mel Karmazin either miscalculated the time that the merger would take or he just assumed that the merger would get approved since every other merger was approved. You can look through our "satellite" sector and see his comments we have noted over and over on this. The result was a disaster because the merger took so long and came at such a cost that now the company has some serious viability issues if it cannot secure ample financing. The company just wrote off enough value from the XM merger that the current numbers are now almost numbing.
Full Story
Tuesday, December 2, 2008
Odds of Mel Karmazin leaving Sirius on his own accord now at less than 50%.
10 CEOs To Go For 2009: Mel Karmazin of SIRIUS XM (SIRI)
It is December, and it is time for many companies to review their existing plans and decide to make some major changes in 2009. SIRIUS XM Radio Inc. (NASDAQ: SIRI) now stands at a critical juncture, and this is a call which will not come about easily. It is also a call which may be one of the more controversial calls out there. It is time for a major change at SIRIUS XM, and that change needs to be the ouster of Mel Karmazin as CEO.
For a backgrounder on criteria, we do not name a CEO with the title of "one who needs to leave" just on share price alone. This call is also not just because the growth ahead will be less than many have hoped and less than what Karmazin had predicted. The call isn't even based upon the great possibility that even that lowered growth target may have to be reduced again. This is also not personal because we have had no dealings with the company nor with Mr. Karmazin. But there has been serious destruction of investor wealth here which cannot be ignored. The only recent investors who have made money are those who sold shares short.
If you go through the list of 2008 CEO's to go, almost all of those called out have moved on by now. If you go through our list of 2007 CEO's to go, you'll see that most have hit the road.
Mel was deemed a hero when he came over and was credited as the key reason that Howard Stern landed at SIRIUS. So he does deserve a large part of the credit for the company's early growth. But Stern's massive pay package came when shareholders were already feeling a major pinch, and that may have been the first straw putting pressure on the camel's back. That prior success was short-lived and has since turned into a shareholder disaster.
We predicted the path to merger in late 2006 and even suggested that either XM head Hugh Panero or Karmazin would go when the new company launches. Panero was the one who left. And Mel Karmazin either miscalculated the time that the merger would take or he just assumed that the merger would get approved since every other merger was approved. You can look through our "satellite" sector and see his comments we have noted over and over on this. The result was a disaster because the merger took so long and came at such a cost that now the company has some serious viability issues if it cannot secure ample financing. The company just wrote off enough value from the XM merger that the current numbers are now almost numbing.
Full Story
It is December, and it is time for many companies to review their existing plans and decide to make some major changes in 2009. SIRIUS XM Radio Inc. (NASDAQ: SIRI) now stands at a critical juncture, and this is a call which will not come about easily. It is also a call which may be one of the more controversial calls out there. It is time for a major change at SIRIUS XM, and that change needs to be the ouster of Mel Karmazin as CEO.
For a backgrounder on criteria, we do not name a CEO with the title of "one who needs to leave" just on share price alone. This call is also not just because the growth ahead will be less than many have hoped and less than what Karmazin had predicted. The call isn't even based upon the great possibility that even that lowered growth target may have to be reduced again. This is also not personal because we have had no dealings with the company nor with Mr. Karmazin. But there has been serious destruction of investor wealth here which cannot be ignored. The only recent investors who have made money are those who sold shares short.
If you go through the list of 2008 CEO's to go, almost all of those called out have moved on by now. If you go through our list of 2007 CEO's to go, you'll see that most have hit the road.
Mel was deemed a hero when he came over and was credited as the key reason that Howard Stern landed at SIRIUS. So he does deserve a large part of the credit for the company's early growth. But Stern's massive pay package came when shareholders were already feeling a major pinch, and that may have been the first straw putting pressure on the camel's back. That prior success was short-lived and has since turned into a shareholder disaster.
We predicted the path to merger in late 2006 and even suggested that either XM head Hugh Panero or Karmazin would go when the new company launches. Panero was the one who left. And Mel Karmazin either miscalculated the time that the merger would take or he just assumed that the merger would get approved since every other merger was approved. You can look through our "satellite" sector and see his comments we have noted over and over on this. The result was a disaster because the merger took so long and came at such a cost that now the company has some serious viability issues if it cannot secure ample financing. The company just wrote off enough value from the XM merger that the current numbers are now almost numbing.
Full Story
Sunday, November 30, 2008
Ronnie does Vegas
"Ronnie the Limo Driver" aka RickyMan from the Howard Stern Show
spent the weekend at the new RICK'S CABARET LAS VEGAS. "Rick's Vegas
is amazing," he said. "They have hundreds of girls--its outrageous."
Ronnie took some of his favorite Rick's dancers to the Hard Rock
Hotel and Casino Pool during the afternoon, where these photos were
shot.
ricks.com
Ronnie does Vegas
"Ronnie the Limo Driver" aka RickyMan from the Howard Stern Show
spent the weekend at the new RICK'S CABARET LAS VEGAS. "Rick's Vegas
is amazing," he said. "They have hundreds of girls--its outrageous."
Ronnie took some of his favorite Rick's dancers to the Hard Rock
Hotel and Casino Pool during the afternoon, where these photos were
shot.
ricks.com
S&P lowers ratings outlook on Sirius XM Radio
S&P lowers ratings outlook on Sirius XM Radio
Wednesday November 26, 4:46 pm ET
S&P lowers ratings outlook on Sirius XM Radio to "Negative" on refinancing concerns
NEW YORK (AP) -- Standard & Poor's Ratings Services lowered its outlook on Sirius XM Radio Inc. on Wednesday over concerns about the satellite radio operator's ability to refinance its debt next year.
ADVERTISEMENT
S&P reduced its outlook on the company to "Negative" from "Developing" and affirmed its non-investment grade "CCC+" corporate credit rating. Sirius XM had $3.37 billion of debt outstanding as of Sept. 30, according to the ratings service.
"The outlook revision reflects our concern over the company's ability to refinance significant debt maturities in 2009, amid persistently weak credit market conditions," said S&P credit analyst Hal Diamond.
Diamond also said the sharp decline in U.S. auto sales and potentially weak holiday retail demand may hurt Sirius XM's subscriber growth and make it more difficult for the company to meet its near-term financial targets.
He noted that most of the company's 2009 maturities are low-cost debt that may have to be refinanced at higher rates, further impeding discretionary cash flow.
Sirius XM shares rose 3 cents or 19.9 percent, to close at 17.5 cents. The stock has traded between 14 cents and $3.94 during the past 52 weeks.
Source
Wednesday November 26, 4:46 pm ET
S&P lowers ratings outlook on Sirius XM Radio to "Negative" on refinancing concerns
NEW YORK (AP) -- Standard & Poor's Ratings Services lowered its outlook on Sirius XM Radio Inc. on Wednesday over concerns about the satellite radio operator's ability to refinance its debt next year.
ADVERTISEMENT
S&P reduced its outlook on the company to "Negative" from "Developing" and affirmed its non-investment grade "CCC+" corporate credit rating. Sirius XM had $3.37 billion of debt outstanding as of Sept. 30, according to the ratings service.
"The outlook revision reflects our concern over the company's ability to refinance significant debt maturities in 2009, amid persistently weak credit market conditions," said S&P credit analyst Hal Diamond.
Diamond also said the sharp decline in U.S. auto sales and potentially weak holiday retail demand may hurt Sirius XM's subscriber growth and make it more difficult for the company to meet its near-term financial targets.
He noted that most of the company's 2009 maturities are low-cost debt that may have to be refinanced at higher rates, further impeding discretionary cash flow.
Sirius XM shares rose 3 cents or 19.9 percent, to close at 17.5 cents. The stock has traded between 14 cents and $3.94 during the past 52 weeks.
Source
S&P lowers ratings outlook on Sirius XM Radio
S&P lowers ratings outlook on Sirius XM Radio
Wednesday November 26, 4:46 pm ET
S&P lowers ratings outlook on Sirius XM Radio to "Negative" on refinancing concerns
NEW YORK (AP) -- Standard & Poor's Ratings Services lowered its outlook on Sirius XM Radio Inc. on Wednesday over concerns about the satellite radio operator's ability to refinance its debt next year.
ADVERTISEMENT
S&P reduced its outlook on the company to "Negative" from "Developing" and affirmed its non-investment grade "CCC+" corporate credit rating. Sirius XM had $3.37 billion of debt outstanding as of Sept. 30, according to the ratings service.
"The outlook revision reflects our concern over the company's ability to refinance significant debt maturities in 2009, amid persistently weak credit market conditions," said S&P credit analyst Hal Diamond.
Diamond also said the sharp decline in U.S. auto sales and potentially weak holiday retail demand may hurt Sirius XM's subscriber growth and make it more difficult for the company to meet its near-term financial targets.
He noted that most of the company's 2009 maturities are low-cost debt that may have to be refinanced at higher rates, further impeding discretionary cash flow.
Sirius XM shares rose 3 cents or 19.9 percent, to close at 17.5 cents. The stock has traded between 14 cents and $3.94 during the past 52 weeks.
Source
Wednesday November 26, 4:46 pm ET
S&P lowers ratings outlook on Sirius XM Radio to "Negative" on refinancing concerns
NEW YORK (AP) -- Standard & Poor's Ratings Services lowered its outlook on Sirius XM Radio Inc. on Wednesday over concerns about the satellite radio operator's ability to refinance its debt next year.
ADVERTISEMENT
S&P reduced its outlook on the company to "Negative" from "Developing" and affirmed its non-investment grade "CCC+" corporate credit rating. Sirius XM had $3.37 billion of debt outstanding as of Sept. 30, according to the ratings service.
"The outlook revision reflects our concern over the company's ability to refinance significant debt maturities in 2009, amid persistently weak credit market conditions," said S&P credit analyst Hal Diamond.
Diamond also said the sharp decline in U.S. auto sales and potentially weak holiday retail demand may hurt Sirius XM's subscriber growth and make it more difficult for the company to meet its near-term financial targets.
He noted that most of the company's 2009 maturities are low-cost debt that may have to be refinanced at higher rates, further impeding discretionary cash flow.
Sirius XM shares rose 3 cents or 19.9 percent, to close at 17.5 cents. The stock has traded between 14 cents and $3.94 during the past 52 weeks.
Source
Monday, January 7, 2008
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