This Day On The Street
Continue to site right-arrow
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Ralph Nader Should Cash Out of Sirius and Run

NEW YORK ( TheStreet) -- I've been highly critical of Sirius XM's (SIRI - Get Report) management for the past several years. While the company has installed new leadership that brought about new optimism, it's become apparent that this story hasn't changed all that much, if at all.

Although Sirius stock has certainly done well over the past 18 months, during that span much of the gains have been the result of the company aggressively buying back its own stock, worth an estimated $2 billion. When you add the activity related to Liberty Media (LMCA), which spent all of 2012 working its way up to majority ownership, it's hard to find anything impressive about Sirius' organic growth.

Ralph Nader, however, sees it another way. The longtime consumer advocate, a Sirius XM shareholder,  believes these shares should be trading higher. He calls Sirius "a fast-growing company with bright indicators."

This explains why he has come out fighting against John Malone, chairman of Liberty Media.

Last Friday, after Sirius stock closed at $3.57, investors received news of Malone's $3.68-per-share bid to buy the remaining portion of Sirius that Liberty does not already own. At the time, this represented a feeble 3.1% premium to Sirius' closing price of $3.57, or 12% below Sirius' 52-week high of $4.18 achieved two months prior.

Not to get too deep into the complexities of the bid, which has a million moving parts, Nader wasted no time calling the offer "ludicrous" and reaching out to activist investor Carl Icahn for help. In a Wall Street Journal article, Nader said: "I am sure that I along with other shareholders in Sirius XM will be interested in a legal challenge to John Malone's company for low-balling Sirius XM's shareholder value."

Carl Icahn, take notice and interest.

It's not the first time Nader has taken the investor activism route to enact change. Three years ago, Nader sent a letter to Cisco's (CSCO) CEO John Chambers expressing his frustration over the company's lackluster 10-year performance. In his letter, Nader reprimanded Chambers not only for his poor execution, but demanded that Cisco return cash to its shareholders.

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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 $3.93 0.00%
AAPL $126.41 0.00%
FB $81.21 0.00%
GOOG $575.33 0.00%
TSLA $200.63 0.00%

Markets

DOW 18,135.72 +38.82 0.21%
S&P 500 2,101.04 +2.51 0.12%
NASDAQ 4,982.8090 +15.6680 0.32%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs