There are few certainties in this overbought market, but one common theme lately has been the dominance of China’s small caps. Seemingly every day, a little-known Chinese company is topping the biggest-mover list.

Today’s list leader is no exception.

China GrenTech (NASDAQ:GRRF) shareholders are watching their positions surge by nearly 50% as investors try to get their hands on this thinly traded microcap.

With an average of just 70,000 shares exchanging hands in any given session, today’s massive trading of over four million shares is a sign investors are willing to pay a premium to get their hands on the $6 million company’s future earnings potential.

The surge in the wireless product provider’s value comes thanks to its latest earnings report, which showed revenues ($62 million) increased by over 125% and earnings ($2 million) surged into profitable territory during the last quarter. Gross profit (the figure the government cares about) came in at nearly $50 million, up 70% year-over-year.

As you probably know, the gang at TFN has been all over the growth situation in China. That is why today’s move is so very intriguing. The fact that much of the company’s growth comes through a demand for higher technology and advanced infrastructure proves China’s growth prospects are on par with the growth this country saw during the last half of the twentieth century.

We’re out. They’re in

The macroeconomic forces that put Chinese companies atop the leader board nearly every day are not going away anytime soon. Remember, money always flows through the path of least resistance.

Why would anybody risk their wealth in a politically risky, volatile American market that is likely to stagnate for the next several years, when they could hunker down in an economy growing by 8%, 9% or even 10% well into the foreseeable future?

The amount of cash flowing into China GrenTech today proves that many investors feel it is a safer move than putting money into something like Citigroup (NYSE:C), which has the government crawling all over it.

Investing in international companies has never been easier. GrenTrech trades electronically through the NASDAQ system. That means buying its shares are no harder than buying shares of Apple (NASDAQ:AAPL) or Sirius XM Radio (NASDAQ:SIRI).

With just a few clicks of the mouse, you have international exposure AND a shot at one of the hottest-growing economies on the planet.

You know where my money is going. If not, read this report.

Source: GrenTech: China Does it Again

The earnings figures released over the last month are absolutely hideous, scary really, yet Wall Street hails them as a sign of recovery and safety.

Revenues are at a fraction of where they were this time last year, yet they beat analyst expectations.

Earnings, if a company is lucky enough to find a profitable strategy, are down by figures like 80%, 90%, even 95%, yet shares are moving up. Investors figure even a couple of bucks in free cash flow is better than nothing.

But what so many investors and even analysts are overlooking is where the surprising figures are coming from. According to reports like today’s dismal same-store sales figures, the extra cash is not from spend-happy consumers.

Instead, companies are slashing headcounts, cutting services and doing absolutely anything they can to increase their margins. In other words, they are burning their house down to cut their electricity bill.

It is great in the short term, but what about the long-term effects?

Not going to be pretty

A perfect example of the recent phenomenon comes today from HSN, Inc. (NASDAQ:HSNI), a.k.a. the Home Shopping Network.

Shares of the couch-potato-friendly shopping channel are up by about 20% today on the news the company was able to cut costs and increase margins enough to squeak out a profit of $11 million even though revenues dropped by 8% during the quarter.

For some perspective, this time last year the company reported a loss of $249.8 million.

The comparison begs the question why didn’t the company cut costs last year when it was hemmoraghing cash?

Easy answer… it did not make strategic sense. It would have been detrimental to the company’s core business if it made a drastic cut to expenses.

So why did the company do it this time? It had no other choice. With credit tight and few signs of any worthwhile recovery, it was cut or be cut for HSN.

But that does not mean the reductions in spending are any better for the company now than they were this time last year. Chances are, we will see the detrimental effects well into the future, in the form of lost market share and slow growth.

For HSN and the plethora of other companies making the same margin-boosting reductions, the key variable will be if their cuts were less detrimental than their competitors’ cuts.

No time to think… just hope and  pray

When marketing, employee benefits and customer service expenses are reduced, there is no doubt it will have a negative impact on a company’s future growth. All there is do is hope its competitors cut just as much or more.

This is an ultra-important consideration for today’s investors. While the bulls may be rushing forward with no ultimate destination in mind, eventually the turnaround stories are going to come to an end and the markets will beg for organic growth.

The only companies adding to their shareholder wallets will be the firms actually able to increase top-line growth. These days, there are not too many of them out there.

Education companies like Apollo (NYSE:APOL) and Grand Canyon Education (NASDAQ:LOPE), which earlier this week announced a 72% top-line increase, are good candidates going forward.

So are companies like, I can’t believe I am going to write this, Sirius XM Radio (NASDAQ:SIRI).

If you can handle the throng of annoying, Howard Stern-obsessed shareholders and the risk associated with the penny stock, today’s report that the company managed to meet expectations and increase its top-line by 1% is some of the best news the company announced in a long time.

Basically it is like this: You can burn down your house to lower your monthly utility bills, but when it is time to crawl into bed, you may regret the move.

Just because a company manages to cut its costs further than expected does not mean its share price should rise. The bewildered market is making a lot of mistakes these days.

Source: Burning the House to Save Money

It is a rare day that I will say anything negative about an investor that wants to lend shares today and pay for them tomorrow. Short selling is a vital, often extremely profitable investing strategy.

While few folks will admit it, shorts actually play a critical role in the markets constant search for equilibrium. They can even create profit opportunities.

That is certainly the case with NCI Building Systems (NYSE:NCS). Its shares are up by nearly 20% today on what would, at first, appear to be absolutely no reason.

But digging a little deeper, it is not hard to see what is likely happening with this $54 million company and its $2 stock.

Those thieves!

According to the most recent reports, shorts are in control of nearly a third of the company’s shares. That’s a phenomenal figure most recently reserved for the likes of Ford (NYSE:F) and Sirius XM Satellite Radio (NASDAQ:SIRI).

With 30% of the shares out short, it would not take much covering to send prices surging. After falling from a high of $42 last September to $2 earlier this week, you can bet a lot of traders have hit their stops and are cashing in and moving on.

A 95% gain from a short position is a wonderful accomplishment and few investors are willing to sit risk losing their profits for the minimal upside that remains.

I hate to burst the bubble of potential long investors that thought this was the start of something much bigger, but the charts always tell the truth.

From what I see, today’s action looks like the first paragraph in the last chapter of a very large fall. It is all because of those rascally shorts.

Source: NCI Building Sytems: Blame It on Those Greedy Shorts

The power of the consumer is amazing. Before today’s opening bell, equity futures looked bleak.

Nuclear testing in North Korea spooked global markets. Housing data showed yet another double-digit decline in home prices. And we are down to the last few days before General Motors’ (NYSE:GM) big June 1 deadline.

But all it took was good news from consumers to get the markets surging by more than 2%. Even though the economic data does not show many signs of a long-term improvement, evangelical announcements of “green shoots” appear more than enough to convince Americans the worst is behind us.

With American sentiment on the rise, it is no wonder one of New York’s biggest movers is smack dab in the thick of the discretionary spending sector.

Take a look at Tween Brands (NYSE:TWB) and its 20% surge today. Shares of the company have nearly doubled in value over the last week after management pulled the curtain on the specialty retailer’s latest quarterly figures, surprising investors with better-than-anticipated results.

Since the March lows, shares of the company have soared by over 400%. A re-branding effort has helped the company’s financial results, but surely a rash of consumer exuberance has helped.

Sell the hype

It is safe to say the same kind of “trend” investors that are boosting up shares of Under Armour (NYSE:UA), Sirius XM Radio (NASDAQ:SIRI) and Crocs (NASDAQ:CROX) are creating a top-heavy valuation for Tween.

Certainly, management has done good things with its recent attempts to “re-value” its Justice brand, but after the recent run, any negative turn in consumer spending could send this volatile small cap into a tailspin.

With a share price of over $5 per share, Tween is ripe for a short position. Investors have an opportunity at double-digit profits by riding shares down to a more appropriate short-term valuation of $4 per share.

Even though today’s report from the Conference Board shows Americans are more upbeat than a month ago does not mean the macro-economic factors tugging at this market have suddenly vanished.

Unemployment is still high. Houses are still shedding value. And Americans are still scared out of their collective minds.

As the green shoots slowly turn into tumbleweed during the summer months, Americans are surely going to realize this is no time to be celebrating.

Shorts may be sweating after the recent surge, but they will have their shot in the spotlight once again real soon.

The equities market can only go so far on expectations of a turnaround. Pretty soon investors are going to demand to see real results. So far, there is no turnaround in sight.

Source: Consumers: What Do They Know?

And what would it mean if the Cuban trade embargo were actually abolished?

President Obama has already loosened several restrictions enacted by his predecessor George W. Bush. Prior to his arrival at the Summit of the Americas in Trinidad and Tobago last weekend, Obama relaxed restrictions on travel to Cuba, making it easier for Cuban Americans to visit and transfer money to relatives on the island.

“There are no better ambassadors for freedom than Cuban Americans,” Obama said in a campaign speech last year. “It’s time to let Cuban Americans see their mothers and fathers, their sisters and brothers. It’s time to let Cuban American money make their families less dependent upon the Castro regime.”

The administration will also begin issuing licenses to allow telecommunications companies to provide cell phone and television services to Cuba, and to allow family members to pay for relatives on the island to receive those services.

It’s too early to assess the impact of these measures on businesses, but analysts anticipate that airline carriers, Internet and telephone service providers, and bank services companies will benefit from new business opportunities.

“This is a big deal; it’s a significant change in U.S. policy,” former Ambassador David A. Gross, the U.S. coordinator for international communications and information policy and a partner at the law firm Wiley Rein, told the Los Angeles Times.

Telecommunications carriers will now potentially be able to establish roaming agreements with Cuban carriers, Gross said. That would make it possible for Cuban Americans to buy cell phones and payment plans in the United States and send them to Cuba for their relatives to use.

The government said Monday that it would allow U.S. telecom providers to establish fiber-optic cable services linking the United States to Cuba. Access to thousands of potential new customers would benefit any number of U.S. communications companies and Internet service providers. Television and radio companies, such as Sirius XM Radio Inc. (SIRI), could also potentially provide service to Cuba.

The Obama administration will also allow computers, software and phones to be donated to Cuba without a government license.

Relaxed travel restrictions will also provide a slight boost for airline companies, but the larger question for carriers is whether or not travel to Cuba will be opened up for all Americans. Currently, U.S. citizens are only permitted to visit Cuba for sporting events, humanitarian missions, exercises in journalism, and purposes related to agriculture.

“This is definitely a step in the right direction for the airline industry and for the travel industry,” Michael Zuccato, general manager for Cuba Travel Services, an agency that specializes in booking travel to Cuba, told the LA Times. “But the big thing will be when the restriction is lifted for everyone. You’ll see a tremendous boost in tourism.”

A New Beginning for Latin American Relations

Regardless of the economic implications, the decision can already be viewed as a diplomatic success, in that it has enhanced dialogue not only with Cuba but the Latin American world.

“We have sent word to the U.S. government in private and in public that we are willing to discuss everything – human rights, freedom of the press, political prisoners, everything,” Cuban President Raul Castro said. “We could be talking about many other things… We could be wrong, we admit it. We’re human beings.”

U.S. officials have responded warmly and at the Summit of the Americas, Obama said his administration is prepared to “engage with the Cuban government on a wide range of issues – from drugs, to migration and economic issues, to human rights, free speech and democratic reform.”

“Let me be clear,” Obama said. “I am not interested in talking for the sake of talking. But I do believe we can move U.S.-Cuban relations in a new direction.”

The summit, which was meant to examine ways to counter such global crises as climate change, drug trafficking, arms dealing, energy shortages, and the collapse of the global economy was almost entirely absorbed by the perceived thawing of U.S.-Cuban relations.

In fact, by reaching out to Cuba, Obama seems to have already won the hearts and minds of many Latin American leaders who view both the embargo and U.S. attitude toward Cuba as outdated, ineffective, and to some extent, cruel.

“I know there are cultural and political problems. It’s not easy to overcome conservative sectors in each country, but I think Obama will tend to advance and understand there is no more need for an embargo against Cuba,” Brazilian President Luiz Incacio Lula da Silva said on his weekly radio address.

However, the Folha d S. Paulo, the Brazilian daily, pointed out that Lula would not be so direct at the summit, because he “wants that the issue causes no embarrassments for Obama, with whom he is genuinely enchanted.”

Even the more radical Venezuelan Prime Minister Hugo Chavez – who at the last summit made frequent attacks on the “imperialist” policies of President Bush – was impressed by Obama’s progressive stance, saying he had “no doubt” diplomatic ties with Washington would improve.

“We’ve begun talking with Obama and I think we’ve got off to a good start,” Chavez said. “He should advance rapidly toward what he’s called a new relationship with Cuba, based on respect, without conditions. I think there’s a good possibility of that happening.”

Canadian Prime Minister Stephen Harper said that while his country maintains diplomatic relations and economic interaction with Cuba, it is “more difficult when there is a chill between the U.S. and Latin America.

“If we are to move Cuba forward economically, my sense is that trying to find ways to engage [it] economically will enhance that objective,” Harper said. “If one wants to break down state socialist and economic nationalist policies, I don’t think a trade embargo is the way to do that.”

Actions Speak Louder Than Words

Analysts are largely divided on what effect, if any, lifting the embargo would have.

Vicki Huddleston, chief U.S. diplomat in Cuba from 1999 to 2002, said in an interview with NPR, that the Cuban government has learned to live without the United States and that by maintaining the embargo we will alienate the eventually successors to the Castro regime.

“The president has the popular support of the American people and now even the Cuban American people as well as the authority to put into place a new policy,” Huddleston said. “He could allow the sale of communications equipment, televisions, radios. Allow the Cuban government to connect to the Internet…This kind of policy of engagement would help us realize our values help the Cuban people have contact with the outside and it would no longer be a domestic policy and I think that’s about to happen.”

However, critics contend that it is not a lack of effort on the part of the United States, but rather unwillingness on the part of Cuba’s leadership that is preventing such progress.

“We’re all in favor of real engagement we just hope the Cubans will want to engage with us,” said James Cason, who succeeded Huddleston in Cuba, under the Bush administration. “I think we’re going to be disillusioned. Those that want to have rapid normalization they’ll find that once again the Cuban government will sabotage any efforts to have closer relations.”

Since the summit, the Obama administration has been a little more reserved when it comes to lifting the trade embargo.

“That’s way down the road, and it’s going to depend on what Cuba did, Cuba does going forward,” Larry Summers, Director of the White House’s National Economic Council said Sunday on NBC television’s “Meet the Press.”

Changes in U.S. policy toward Cuba will be decided “on the basis of Cuba’s behavior, on the basis of the steps that they choose to take and choose not to take, in terms of their policies in this hemisphere,” he added.

“Actions are always going to speak louder than words, regardless of how long the speeches are,” said White House spokesman Robert Gibbs. “We will continue to evaluate and watch what happens, we are anxious to see what the Cuban government is willing to step up to do, and I think the president believes that significant action’s been taken.”

Source: Will Obama Lift the Trade Embargo Against Cuba?

Part of the reason is the company’s high profile on Wall Street – it’s arguably the most popular penny stock out there. And why shouldn’t it be? After all, the company is the exclusive provider of satellite radio and in-car TV broadcasts for almost 20 million paying subscribers in the United States and Canada.

But to assume that all the interest in Sirius XM (NASDAQ:  SIRI) is because of the company’s great growth prospects would be dead wrong. Scores of investors want to see this company crash and burn.

As of last month, almost 5% of shares available to the public were short Sirius XM, and while that might not sound like a lot of shares, it’s 25% more short interest than even beleaguered Citigroup is facing.

Part of the reason for that dichotomy of investor sentiment is the battle between the company’s cash-machine business model and its over-leveraged balance sheet. At present, the $1.4 billion company is sitting on around $5 billion in long-term debt – a number that’s grown 260% in the last year largely as a result of the merger between rivals Sirius and XM.

Can Sirius Scrape up the Cash?

But Sirius XM isn’t insolvent – yet. Last year, the company generated $1.7 billion in revenues, and much higher numbers are all but guaranteed for this year as a result of the merger. Add to that the last-minute $530 million cash infusion Liberty Media Corp. agreed to lend to Sirius XM last month, and this company is certainly adept at eeking by the guillotine.

That skill is part of the reason SIRI shares have appreciated so dramatically in 2009.

In the case of Sirius XM fundamentals (like the company’s income statement and balance sheet) are squarely pitted against its business (like the fact that it provides a great service). Now, more and more, investors are counting on the business side to win out.

After all, the Sirius and XM merger is estimated to generate $400 million in excess costs this year alone.

Believe the Hype

Indeed, media sentiment has even changed for Sirius XM. Where financial writers used to lampoon the flailing company, they’re now standing behind its prospects for turning a profit in 2009.

“Things are going so well for Sirius XM Radio these days that it doesn’t even have to say a word for positive things to happen. All it has to do is sit tight as those around it generate headlines favorable to the satellite-radio operator,” said the Motley Fool’s Rick Munarriz in an article about trends that should be a boon to the Sirius XM bottom line.

Analysts too are flip flopping over to the side of Sirius XM, estimating a narrow loss for the coming quarter and a target price more than 16% above what the stock trades at today.

As investors, we’ll just have to wait until earnings season to see whose side ends up the victor in this battle royale. Whatever the future holds for SIRI’s stock price, the one constant is that the ride is sure to be a wild one. Until then, I’ll just stick to listening to Sirius in my car, not watching it in my portfolio.

Source: Are Investors Finally Getting Sirius?

The only thing keeping Wall Street from packing up shop and moving to Washington is the fact it can’t find a buyer for the buildings it occupies. Thanks to our elected officials, investors are forced to spend more time reading the political pages than the business section, and that means Wall Street leads directly to Pennsylvania Avenue.

Lately, the equities market has little energy or motivation to move until Washington opens its mouth. When our leaders talk, all bets are off.

Geithner sent the markets crashing. Bernanke sent them soaring. And today, Obama sent them right back down. The more they meddle with the economy, the stronger the reactions and the worse the addiction.

Anybody have any duct tape?

It is an utter mess on Wall Street. Political uncertainty has created financial uncertainty and we are all paying for it, whether it is through higher taxes or our plunging 401(k)s. As I write, all three major indices are down by over 2.25%, getting sucked down by more bad news from the real estate sector.

But even in the midst of the decline, shares of General Motors (NYSE:GM) and Ford (NYSE:F) continue their recent upswing.  GM has surged by more than 65% since crashing to a new low of just $1.52 last Friday.

What gives?

Of course, it all has to do with government intervention. Now that Obama has its Detroit review team in place, speculators believe chances of any bankruptcies are greatly decreasing by the day. Some positive gestures from Obama last night only helped to brighten the mood.

Many investors are looking at the action and wondering if this is a sustainable run or merely another government-fueled fake-out.

Read the full article here: Investments lost? Just follow Wall Street to Pennsylvania Avenue

The deal also marks another chapter in an ongoing saga featuring John Malone, Liberty’s CEO, and rival Charles Ergen, the satellite-TV pioneer behind Dish Network Corp. (DISH) and sister firm Echostar Corp. (SATS).  The two have occasionally worked together but are major competitors in satellite, as they were when Malone controlled cable-television company Tele-Communications Inc.

“Sometimes they play nicely together in the sandbox, but sometimes they are good, old-fashioned rivals,” satellite analyst April Horace of Denver-based Janco Partners told the Denver Post. Both companies are headquartered in Englewood, Colorado.

Under terms of the agreement, Liberty would provide a $280 million senior secured loan   to help Sirius repay $171.6 million in convertible notes due yesterday (Tuesday), which are owned by Ergen.  At a later date, Liberty would provide another $150 million loan to XM Satellite Radio, Sirius XM’s wholly owned subsidiary, and purchase up to $100 million of XM’s credit facilities, according to Bloomberg News.

The loan will pay Liberty a whopping 15% interest rate and mature in December 2012. When the second loan is completed, Liberty will get 12.5 million shares of preferred stock convertible into 40% of Sirius XM common stock.

The deal allows Sirius to avoid bankruptcy and a major shuffle of talent. A bankruptcy filing could have threatened contracts with such luminaries as Martha Stewart and Bob Dylan, as well as the company’s five-year, $500 million pact with Howard Stern.

Sirius has never been profitable, mainly because it was burdened with massive interest payments on its debt. After acquiring rival XM in July, it was hit hard by the credit crunch and poor auto sales – its main distribution channel.  Sirius XM has about $3.25 billion in total debt.

“Sirius is in the process of getting out of the woods because Liberty is putting up a lot of money,” David Joyce, an analyst with Miller Tabak & Co., told Bloomberg News. “It shows that Sirius will be around for a long time.”

Malone and Ergen, who have been fierce rivals over the decades, were again pitted against one another by Sirius Chief Executive Mel Karmazin to save the company he formed just seven months earlier.

In 2003, Ergen abandoned a bid for DirecTV’s then-parent company, Hughes Electronics Corp. because he couldn’t get regulatory approval. Malone gained control of DirecTV last year after buying out Rupert Murdoch’s News Corp.’s (NWSA) stake. Ergen’s Dish Network had 13.8 million customers as of Sept. 30, trailing DirecTV’s 17.3 million.

The Liberty deal came after recent efforts by Ergen to acquire control of Sirius by purchasing its maturing debt, following an unsuccessful takeover bid in December, according to the sources cited by Bloomberg.

Ergen, a former professional gambler, bought the majority of a $300 million batch of discounted Sirius bonds that came due Tuesday. The company, said Feb. 13 it might have to file for bankruptcy if it couldn’t reach an agreement to restructure the debt.

Ergen offered to restructure the debt and invest several hundred million dollars into Sirius in exchange for control of the company.  That plan was scuttled by Liberty’s “white knight” move, which allows Karmazin to keep his job as CEO.

Liberty’s plans for Sirius are unclear.

“We think that John Malone and Charlie Ergen’s strategies are different,” Thomas Eagan, an analyst at Collins Stewart told Reuters. “We think that Charlie Ergen’s strategy may have been more about creating a broader strategic play in wireless services as he has attempted mobile video before. For John Malone it’s more of a financial investment. He had this venture fund with cash available and he figured this was a worthwhile investment.”

Whatever his motives, Ergen’s strong personality and previous clashes with Karmazin may have presented obstacles impossible to overcome.

The two locked horns in 2004 when Karmazin was head of media giant Viacom. When talks broke down over rate hikes imposed by Viacom for the rights to carry certain channels, Ergen published Karmazin’s home number and told subscribers to call him.

“I can’t imagine Ergen and Mel Karmazin working that well together,” said Matthew Harrigan, an analyst at Wunderlich Securities.

Source: Sirius Business – Liberty Injects $530 Million into Satellite Radio Provider

All betting is closed. The news is out and Sirius XM Satellite (NASDAQ:SIRI) shareholders are losing big. Shares of the shaky-at-best company are getting closer and closer to becoming worthless. Bankruptcy is now in sight. Who could have imagined?

Oh my, shares of Sirius XM Satellite (NASDAQ:SIRI) are plunging today on news of a possible bankruptcy filing. Who would have ever been smart enough to foresee such a horrible event coming? The company only had a billion dollars in debt due over the next year. That’s nothing compared to the banks.

Uncle Sam could easily step in and erase a few of those zeroes, right?

Putting all sarcasm aside, I do not feel even the slightest bit sorry for investors wasting their money on this company. Analysts and experts have been screaming for months it was a dangerous crap shoot that would cost investors dearly, yet wildcat investors continued to aim for the fences.

It looks like they are about to strike out.

Shares of Sirius are down by about 40% (from $0.11 to $0.07) at the moment on news the company’s officials are mulling a bankruptcy filing. Whether the rumor is merely a back-handed ploy to get Charles Ergen and his EchoStar (NASDAQ:SATS) to step to the plate or if a bankruptcy truly is pending is beside the point. What matters is shareholders are about to get the rug pulled out from under them.

Short sellers are getting the news they yearned for. Only one other stock, Ford (NYSE:F) has more shares sold short. But you can bet with shares plunging ever closer to the critical zero level most sensible investors have been predicting, those shorts are going to lock in their profits and run. In fact, their buying to cover their positions is likely the only thing keeping shares from all-out devastation today.

Read the full article here  at TFN: Sirius investors: You get what you deserve

This from Andrew:

Sirius XM Satellite (NASDAQ:SIRI) investors have their hands full once again. After a wannabe rally last week, shares have been on the decline ever since. Even more shareholder wealth will be destroyed this week.

It is a stock that will tease and trick you out of your hard-earned cash. It is sexy and alluring, yet it will take you out without a second thought. It is responsible for billions of dollars of destroyed wealth.

I sure hope you were not one of the folks buying shares of Sirius XM Satellite (NASDAQ:SIRI) last week on the news that an outsider was buying up the company’s soon-to-mature debt.

If you followed my advice, you sold your shares and ran from this dangerously speculative company. But if you went rogue and bought into the rally, you are sitting on some sizeable losses this week. Even worse, it looks like the losses will continue to multiply.

So far today, shares have lost over 7% of their value and are hovering at the $0.12 mark.

Today’s decline comes on the news that Sirius turned down an unsolicited deal made by EchoStar (NASDAQ:SATS) late last year. According to sources, the proposal would have been enough to pull Sirius out of its debt issues. Of course, it would have a new owner.

With just a week or so left until the company has its first round of debt obligations come due, Sirius has very few options if it cannot find a quick solution. According to the company’s controversial CEO, Mel Karmazin, Sirius has two options, bankruptcy or make a deal with EchoStar. That is not the kind of news a shareholder wants to hear.

Either way, they will lose money.

This is going to be an incredibly volatile week for Sirius, with speculators trying to pull share price in every direction. Rumors will be all over the place.

With expected price swings of 10% or more in the next few days, it is tempting to try to “trade” the company’s shares. But Sirius is so volatile and so unpredictable, you would have better odds betting on the ponies.

Shares of Sirius should not be traded on a stock exchange. They should be traded in Vegas.

Source: Sirius: Cheaper than a scratch-off and just about the same odds