NEW YORK ( TheStreet) -- For reasons I can't quite comprehend Sirius XM (SIRI - Get Report) investors continue with their misguided optimism over recent events with Liberty Media (LMCA - Get Report). They seem to think Liberty's effort to take full control of Sirius is going to somehow manifest into a win-win situation where both Liberty and investors of Sirius walk away holding hands.
I can't help but think how this is an example of the perverse investor characteristic that likes to make easy things difficult.
Sirius XM investors need to understand that Liberty Media is not working for their best interest, nor should they. Last week, Liberty said it had entered into a forward-purchase contract giving it the right to increase its stake in Sirius XM to 45.2%. The contract allows Liberty to purchase 302 million shares of Sirius XM at a forward price of $2.15 per share or $650 million.
Instead of looking at this news objectively, many were quick to apply lipstick to this disappointment by suggesting that Liberty had somehow established a floor for the stock at a price of $2.15.
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