Shares of Sirius XM (SIRI) Jump on Karmazin's Reassuring Comments

Sirius XM Satellite (Nasdaq: SIRI) stock is up about 22% on the back of comments made by the company's CEO, Mel Karmazin, on a conference call today. Shares most recently traded at $0.195, up $0.035 from yesterday's closing price.

Traders are buying the stock today as Karmazin pounded the table on his company, and more importantly, his decision-making process involved in with the recent $530 million investment by John Malone's Liberty Media (Nasdaq: LINTA). Karmazin reassured investors and analysts that, while the terms of the deal were not necessarily in favor of Sirius XM (15% interest on the loan and a wallop of shareholder dilution), this was made in the best interest of stakeholders.

Karmazin said, "Had we not accomplished this refinancing, I assure you that no one involved with our enterprise would have liked the alternative. We hate to give up some of the synergies of the merger to higher interest expense, but it was in the best interest of our shareholders to do so."

"In this environment, when cash is king and liquidity issues are something to avoid, we were not in a great position. Rather than take the time here to review all the trials and tribulations of having to raise money in this environment, I will just say that we got it done, and many, many companies did not get it done."

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