Heroic Sirius

Sunday, November 28, 2004
Posted in category Uncategorized
Comments Off

I think.

I love the attention given to Satellite radio, and this great piece about Sirius is no exception. It’s about time that government’s awful radio programming went down the tubes. I’m an XM gal, however. The other day, I noted a 2-hour Frank Zappa instrumental special, and, a channel away, there were some deep cuts from Loggins & Messina and Savoy Brown. My government-powered receiver no longer breathes.

However, financial geeks like me are a bit bothered by stuff like this:

In his three years running Sirius, Clayton used his gambler’s instinct to get the company on track. He replaced 22 of the top 25 executives with more experienced veterans of consumer electronics and television programming. To ease Sirius’s debt burden, he repeatedly turned to the stock market to raise cash-including five times in the past 18 months. The company now has more cash than debt, but more shares outstanding on NASDAQ than either Microsoft or Intel.

Trading equity for brand names usually doesn’t sustain itself in the long run. This newfangled, Ivy League MBA-influenced financial “wizardry” is both disastrous and criminal in regards to the shareholders.

Be Sociable, Share!
Both comments and pings are currently closed.