This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Sirius CEO Sells 13 Million Shares Under $2: What's Next?

NEW YORK ( TheStreet) -- One of the challenges on Wall Street has always been trying to find ways to tip the scales more evenly to allow "the little guy" a chance at reaching some modicum of success.

I have found that the most effective way of bringing balance to the investment community has been through due diligence. While everyone wants to make money, not everyone knows how to conduct research or care enough to take time to do it.

One of the things that have always made TheStreet a success has been the exceptional degree at which it has afforded investors actionable information with pinpoint accuracy. It does this consistently by allowing writers like me to scour large volume of data and organize it in a way that it makes sense and hopefully the end result generates sufficient analysis to help investors make some well-timed investment decisions.

Sometimes, investors listen and other times the information is readily dismissed, but the information has always been there. Case in point...

As the graphic below shows, Mel Karmazin, CEO of Sirius XM (SIRI - Get Report) sold 17 million more of his options at prices of $1.97 and $1.98. While this may have come as a surprise to many, it really shouldn't. This was highly expected and one of the reasons for my suggesting this week that $2.00 would be the new trading top..

Speaking of clock, disappointed investors are quick to point out on my recent articles that "even a broken clock is right twice a day." However, as we sit here today, Friday May 18, while investors are wondering what is going on with the stock and anguishing over how long this suffering will continue, here are two broken clock examples on two separate occasions. Last, Tuesday May 8, when the stock was trading at $2.25, I offered the following trading advice:

Also, the CEO, Mel Karmazin, still has 49 million more options to exercise. I wouldn't be surprised to see more insider selling, including some from Karmazin, between May 16 and 18. With Liberty not paying more than $2.15, investors would be smart to sell now and move on before the downgrades start flowing in.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
SIRI $3.95 -0.38%
AAPL $132.65 1.82%
FB $81.91 0.47%
GOOG $555.37 -1.71%
TSLA $231.55 6.01%

Markets

DOW 18,037.97 -42.17 -0.23%
S&P 500 2,108.92 -8.77 -0.41%
NASDAQ 5,060.2460 -31.8390 -0.63%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs