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I'll spell it out for you.

Citigroup owns Solomon Smith Barney. Citigroup is taking large stakes in nearly every method of electronic cash collection/transactions that I know of. SIRI chose a subscription collection method that is not under the Citigroup umbrella. It is stated at Citigroup that the only possibility of earning 1 billion customers is through technology. 20 million potential subscribers (SDARS in ten years) is a nice piece of pie to somebody like Citigroup when they currently count 120 million (subscribers/customers). It is my perception that those who collect subscriptions have substantial interests and influence in the subscription business model. Solomon Smith Barney is also known as a mover and shaker in the Telecom industry as far as mergers and acquisitions. They've been known to upgrade, sell, downgrade, merge, acquire, upgrade - wash - rinse & repeat with all sorts of Telecoms. Although calling SIRI a near term short as Solomon Smith Barney did in their downgrade was fairly obvious considering the shape of the markets my post hints at possible long term motivations that I feel are of positive reinforcement to longs. I am leary of Solomon Smith Barney lurking around SIRI. I don't want my shares aquired or merged at an unfair low price like so many other telecoms or dotcoms. Tell me it's all part of the nature of the markets but I bought SIRI because I believed they could still be SIRI ten years from now and not some part of who knows what mega corp.

Of course we could also all step back and consider that the recent sell off is 'selling on the news' and who could argue?

In retrospect what is of interest to me is the fact that Loral sold high, a new institution moves in and buys an equivalent number of shares low and now the 40% short position has an opportunity to cover so I begin to wonder how this is possible. Are the market makers that good at timing or are they simply following the most basic rules of collusion?

Perhaps it's just the musings of a long who was convinced to buy and hold trying to rationalize why he didn't simply protect his gains when he had the chance in the 50's.

It's up to you to decide whether my blathering is simple finger pointing or a senseless rant or perhaps you hadn't noticed that SIRI took a major hit after the downgrade by Solomon Smith Barney.

Is it paranoia to think that the moves of brokers might be financially motivated? All I did was post the links and a bit of blather. There were a number of other points I did not bother to link so I'll post the rest of them here.

The point is that my research and posts reaffirms the importance of the subscription model. I believe that subscriptions are or will be an integral part of the electronic cash/credit card business model.

So with my research I've decided that although there are many powerful forces that would desire a piece of the SIRIus/XMSR subscription pie, I've also decided that they've survived long enough to leave some of that pie for their investors as well.
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