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Stocks S / Sirius XM Radio

URL:  https://boards.fool.com/they-are-touting-it-as-a-depressed-stock-buy-one-16532016.aspx

Subject:  Re: TMF are Hypocrites Date:  1/23/2002  2:04 PM
Author:  Somewhere Number:  1540 of 10889

They are touting it as a depressed stock buy one day and then shorting it the next.

Good grief, did you even READ the article you posted a link to? *rolling eyes*

First, go to the beginning. You posted a link to an article that was "part 2" of a series. The "part 1" part is at http://www.fool.com/news/foth/2001/foth010712.htm. This was back in July of last year.

There's a BIG difference between a "depressed" stock and a "low-priced" stock. If you read the article closely, you'll see it's touted as a "low-priced" stock, not a "depressed" stock. And as an investment, Rick makes it very clear it's a very RISKY stock.

Part two, the link you posted, was posted in October--three months later, when Rick goes to reflect on the stocks he "discovered". While in part 1, Rick had some faith that there MIGHT be value in the stock, by the time part 2 came around, serious issues with Sirius were made public. In part 2, he writes:

Sirius is also known as the Dog Star, so it's no surprise that this was the biggest dog in our summer list. While its satellite radio rival XM Satellite Radio (Nasdaq: XMSR) has launched according to plan, Sirius has not been as fortunate. Earlier this month the company announced that it would delay its service until next year and its CEO stepped down.

Despite significant deals in place, now that XM has beat it out in the space race to roll out subscription-based radio with nearly 100 crisp channels offering coast-to-coast coverage, this is hardly a welcome situation. Sirius may be the lowest priced of the lot here, but it has earned it.


I'm AMAZED you read into such a strongly negative statement that the Fool is "touting" it as a depressed stock. That wasn't my impression at all.

You might complain about why did Rick change his mind on the stock? From a "possible value play" to a "it's gotten what it's deserved"? Well, when the first article was written, the company hadn't announced a delay with its service nor had it's CEO stepped down. With this extra information he learned, he had a change of heart. The longer the delay, the more risky he felt the company was.

And FINALLY, I've said it once, and I've said it before, the Motley Fool is made up of a wide variety of people with different opinions, and there's no one right way to invest. Rick Aristotle Munarriz wrote these two articles while Jeff Fischer wrote the shorting Sirius article. Why should Jeff have to defend his view because he might have a different opinion than Rick? Which, if you actually READ the link you posted, the opinion didn't seem much different at all in the first place!

There's not a conspiracy theory here, people! Get over it! Not everyone is going to love your stock. Heck, there was a stock the Fool shorted last year that the UK Fools were LONG in! One person's garbage is another person's treasure. If it wasn't for people like Rick, Jeff, and me with our negative attitudes, you wouldn't be able to buy this stock at the "screaming bargin" you think it's trading at now, so what are you complaining for? If you really believe in this company, we're doing you a favor!

-- Ryan
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