Killing on Sirius XM's Stock

I’m going to cut to the chase here. Sirius XM (SIRI) shorts have made a killing shorting the stock and there is no sign of it slowing down. As I said previously the crime rate should be on the rise and longs need to get used to it.

Now that I have that off my chest, let’s get down to business and continue our extended series of dismissing more improvable theories about short losses -- better known as myths. As many of you know, I am now long Sirius, but I need to admit point blank that I wish I would have held my short position for a couple of more weeks. I am now long the stock with an average cost basis of $2.10 from a purchases made at three separate intervals. But today I am kicking myself now that it has dropped below $2, which caused me to ask earlier this week “what is wrong with Sirius?”

You thought it was just an article title, but the other day I was really asking this very question angrily; though I left out two words between “what and is." I posed this question while holding an ax as I chopped wood in my back yard. Do you know when something get’s under your skin to the level where you develop an appetite for destruction? Well of course you do if you have been a Sirius shareholder for longer than two years. The stock just does not cooperate and refuses to abide with logic. Nobody has played this better than Sirius shorts.

Those of you who don’t like records or CDs that skip ought to stop reading immediately because you are about to read a repeated occurrence. Yesterday, Nasdaq released its bi-monthly short interest report and (you guessed it) Sirius’ short interest has once again risen for the seventh consecutive reporting period. What is remarkable about this is that this in of itself is a phenomenon according to many Sirius longs. Do you remember Joe Dimagio’s 56 game hitting streak? If you are not old enough to have witnessed that (neither am I), how about tuning in just to watch Tiger Woods making the cut on a particular tournament to continue his streak of 142 PGA cuts made? Sirius’ streak of rising short interest has now reached that status. It is now something that I actually look forward to just to see how high and how strong the sentiment against the stock can go.

The fact that one has the ability to short sell a stock should not come as a surprise. I mean why should it? Stock prices are constantly rising and falling. So naturally there are firms whose sole purpose is to research deteriorating companies that are prime short-selling candidates. These firms go over financial statements looking for weaknesses that the market may not have discounted yet or a company that is simply overvalued. So clearly, there is a reason for the continued rise in this negative sentiment on Sirius. Astute investors will be better served to try to figure exactly what that is rather than continue fighting what the data has been saying for the past several months.