No. 1: Sirius XM RadioTech's hottest cash fire has finally reduced its stock to embers. The satellite radio shop has plunged deeply into red ink, accumulating a total deficit of $9.46 billion. Given that Sirius shares are trading at around 40 cents, it's obvious that investors aren't confident that pay radio stock has much upside. Sirius lost customers for the first time ever in the first quarter and is on track to lose 1.6 million subscribers this year. Free cash flow for the first quarter was a negative $4 million. With so much riding on new car sales, Sirius faces big challenges this year. A likely scenario is that Sirius will collapse into the arms of its lifeline creditor and big debt holder Liberty Media ( LMDIA), owner of DirecTV ( DTV). With friends like Liberty Media waiting in the wings, Sirius equity holders have reason to worry.
No. 2: ProceraThis network security software developer loses $2 for every $1 in sales it brings in. It competes against networking giants like Cisco ( CSCO) and Juniper ( JNPR). Procera burned through $3 million in cash a quarter last year with $4.8 million remaining as of September. In a bid to stay afloat, Procera arranged a $3 million line-of-credit with a Palo Alto, Calif.-based firm called The Private Bank. "We believe our business has reached the point where bank financing is a prudent next step for funding," the company said in a press release. In May, the company raised $1.8 million in a very dilutive private placement sale of 4.6 million shares of stock. Prudent investors might not want to wait around for the next, next step.
No. 3: ClearwireBuilding a new nationwide wireless network would be daunting in any economy. Zero would have come sooner if the Kirkland, Wash.-based WiMax venture hadn't received a $3.2 billion infusion from tech partners Comcast ( CMCSA), Intel ( INTC), Time Warner Cable ( TWC) and Google ( GOOG) in December. But three months after that investment, nearly all the money was written off as a loss. Intel, for example, said its $1 billion Clearwire investment is now worth $62 million, a 94% drop in value. The WiMax signal appears weaker than ever.
No. 4: Advanced Micro DevicesAMD has had a good run as David to Intel's Goliath, but the stock is all tuckered out, down 90% over the past two years. Check out this video for the skinny on AMD's prospects:
The AMD Survival Debate