Mel Karmazin Delivers in Mad Money Interview

by: Brandon Matthews August 12, 2008 | about stocks: SIRI    

Brandon Matthews

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Monday's Mad Money appearance by Mel Karmazin may be the single most important interview for every Sirius XM (SIRI) investor, ever. As the bottom was again tested at 1.32 on Friday, this was a must win for Mel Karmazin. I must say that in my opinion, Mel delivered and delivered in a big way. Mel began by assaulting Jim Cramer on behalf of all SIRIUS XM investors, by throwing an object of some sort at him! Boo-Yah, Skee-Daddy!

Mel was able to set Jim straight on many things, such as next year's converts which Jim tried to claim were due this year. Mel also took a shot at Goldman Sachs, citing potential wrongdoing on the part of Wienkes, regarding his work with hedge funds.

He explained in layman’s terms that promotions regarding the best of packages, namely Howard Stern on XM, would be available this fall, and investors should look for a large marketing push to this effect. Regrettably, Mel outlined that some terminations have already taken place and that more would be forthcoming.

As for greater visibility, he stressed that SIRIUS XM would be providing an investors conference call following Labor Day, to outline the future plans and update guidance. Mel seems laser focused on profitability.

One of my favorite parts was getting Jim to concede that he liked no other company in the sector better. I was thinking about this Sunday while watching the Olympic men’s relay team steal the gold medal away from France. What if you could only buy and sell stocks every four years? Sirius, in my opinion, would certainly have to be one of them.

The stock reacted nicely and is well off its technical bottom. Is this the beginning of the long awaited reversal? Time will tell, but for the moment it’s looking like it very well may be!

[Watch The Interview]

Position - Long SIRI

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This article has 12 comments:

  •  
    Aug 12 07:55 AM
    Go for the gold...hold the line ...the Blue dog Will rise again...thanks Mel...See you in September.
    Reply | Link to Comment
  •  
    Aug 12 08:26 AM
    THIS IS WHAT I HAVE BEEN WAITING TO HEAR. MEL IS THE MAN TO DO THE JOB. GOOD ARTICLE, AND MEL, I AM STICKING WITH SIRI FOR THE LONG HAUL. T.M.
    Reply | Link to Comment
  •  
    Aug 12 09:45 AM
    I too am a beleiver in SIRI. Remember years ago people Poo-pooed cable TV as ever being profitable SIRI is the same concept. WHo would ever pay for radio/TV when you can get it for Free. It will never make money because the fixed costs are so high youneed X number of subscribers before you can make the first dollar/ How would you like to be able to buy some of the cable giants at $1.50 per share or less.

    If everyone who beleies shuts up and does the honorable thing...buys some more shares...like Mel K did we will turn the corner fast and start the long uphill climb. I beleive and I am buying... Follow your gut.
    CAptjetlag
    Reply | Link to Comment
  •  
    Aug 12 12:39 PM
    Scot here. I agree with captjetlag. Yes, there will always be some free radio, but for premium listening, and more channel selection, listeners will pay to play. This is capitalism where profit is the end game -- nobody rides for free....

    Mr. Vicar, you are still playing games. But, before getting into that, here's a quick story: I coach little league. And in my first year of coaching there was a game where a kid missed a grounder and because of that error a few runs scored and we lost. And I told the kid that because of that missed ball, we lost the game.

    Well, in immediately recognizing how ignorant it was for me to make such a stupid remark, I set to work in rectifying my own error by rebuilding that kids wrecked ego, and I charted a new course in telling kids that if they booted a ball or struck out not to worry -- in baseball they have have hundreds of at- bats and hundreds of chances to put somebody out: One bad play or one strikeout means nothing.

    So in using that analogy as a platform in describing what seems to be your philosophy, where instead of building others up, you seem to delight in slamming them down with these remarks: "I feel sorry for you, I feel ashamed for you", etc.

    And in putting this all together, and in your continuous slam on Sirius stockholders, and in response to my request for a sharing of information, you befuddled me once again by giving me an assignment: Do my homework (debt to earnings, companies that have leverage over suppliers with savings passed on to consumers, etc.)

    O'kay fine, I appreciate that.

    However, since I've been forced into this position, I'm going to ask once again for some specific information as to which companies you see fit to invest in. I asked you this before and your reply was that you did not offer recommendations for free. Well, that's crap. Do you not offer your opinion for free that Sirius stock stinks?

    Enough said there and I'll end with one more thing: If you do not see that it is fitting to offer constructive dialog on this board where we may all profit with tidbit tips on other stocks, than it it not fitting for you to dialog at all: Trust the system -- working together works....

    Scot's Slant
    Reply | Link to Comment
  •  
    Aug 12 01:30 PM
    When Mel spoke about terrestrial radio being around for a long time he reminded me of how Vince Dooley used to say things like "You know that Vanderbilt has a mighty fine team - best punter in the league". The truth is Sirius is going to kick some terrestrial radio ass in the next 2 years and Mel knows it. He is obviously holding back so as not to arouse the FCC, or give NAB any ammo for a suit.

    The Veggie is entitled to his valueless shortsighted opinions and I obviously respect that. As for me, I am looking forward to winning seasons for Sirius from now on.
    Reply | Link to Comment
  •  
    Aug 12 02:52 PM
    Where's Tyler???

    His daily pumps are missing.

    And Brandon is no Tyler.
    Reply | Link to Comment
  •  
    Aug 12 03:40 PM
    I didn't get to watch this but am really glad SIRI is getting some positive press. I continue to have faith in the merge. I defintley think this is the beginning of a long awaited reversal. The stock is already up today and people are generally feeling good about it (www.predictwallstreet....). SatRadio is the future, Long SIRI.
    Reply | Link to Comment
  •  
    Aug 12 07:36 PM
    I followed SIRI based on Cramer's recommendation when at about $6 per share about 4yrs ago and followed it down all the way to merger day at $1.46. Burned by Cramer and was waiting for that $5 pop on merger day by Cramer. I may consider SIRI again when it hits its all time low of about 50 cents. I believe in SIRI too. But reminds me of Lucent and Nortel promises from management and Cramer's recommendations too and followed them down too as an investor. Mel K. still gets his bonus and big salary at shareholder expense. As for Cramer he lets his friends, Mel, get in the way of investments. Like his friend Spitzer too. Cramer lost his credibility with me. Another example is Corning, GLW, where he recommends the stock and next day says sell based on downgrade. GLW has great earnings. I now turn Cramer off.
    Reply | Link to Comment
  •  
    Aug 12 08:26 PM
    hey johnboy, mels not cramers friend , the boys from goldman,(weinkes)are. as he said last nite on the 2nd seg. of mad money, he agrees with goldman,(weinkes). another one of cramers flipflops. im sure they called him& said, hey dude, change your tune, were gonna drag this thing down.cramer came from goldman and is still one of their puppets.mel is one shrewd guy and this weinkes cat has got him fired up, that could be a good thing. news after labor day could be the catalyst to get this thing headed the right direction. position,long
    Reply | Link to Comment
  •  
    Aug 12 09:57 PM
    A few things:
    JohnBoy, You sound like a bitter bagholder and I ask you that if you approached SIRI today, without your past loss, would you buy at this price.?...Damn right you would. suck it up and get on board before you miss the boat.

    I also agree Capt lag and Scott that satellite radio today is similar to cable of 10 years ago. Years ago, people also said they will not pay for cable when they can get free TV. Have you listened to the trash on FM today, commercials every 3 minutes and a "block" of 5 interrupted songs is considered a rarity. People have had it with being bombarded by the sales pitch and hyped up DJs.

    Satellites in the sky mean much more than music and new applications such as worldwire marine weather, navigation assistance, mass transit and commercial apps can generate considerable revenue as does the retail demand. SIRIUS XM is in a unique position with a lock on a super high tech market, unique product offerring and almost impossible market entry point for competitors
    Reply | Link to Comment
  •  
    Aug 13 10:44 AM
    Meh. SIRI is in the toilet. Gonna be there for a while.
    I'm riding this turd to the bottom...

    Shoot. I need more toilet paper.
    Reply | Link to Comment
  •  
    Aug 13 11:38 AM
    Just hope this becomes a floater. df
    Reply | Link to Comment
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