XM Satellite Radio Holdings Inc. (XMSR) Message Board

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Technology Stocks : XM Satellite Radio Holdings Inc. (XMSR)

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To: Michael Hart who wrote (301)	8/20/2002 10:31:30 AM
From: pagejack	Read Replies (1) of 3386

Mike, You may be right as to the share price increasing in value as the market recovers. And if it works out that way, I certainly won't begrudge you your profits. However, XMSR does not have sufficient liquidity now to reach profitability. Thus it must have an infusion of cash or the stock will become worthless through a chapter 11 bankruptcy proceeding. I think that we both agree on this point. You say "[a]s soon as the rumor/fact emerges that someone is willing to give them more funding the stock price will rise......to what I have no clue but it will happen before the actual money is raised and the details known." I respectfully disagree. The fact of additional funding will arrive concurrently with knowledge of additional dilution of the stockholders' interests. Rumors of funding will probably circulated, but professional investors, institutions, and the large funds will avoid XMSR until the extent of the dilution is know. I have seen the effect of such dilution on to many other stocks to believe that XMSR will be any different.

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