XM and Sirius Surge After Yesterday's Decline (XMSR, SIRI)
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Shares of both XM Satellite (Nasdaq: XMSR) and Sirius Satellite (Nasdaq: SIRI) are seeing upside pressure early in today's trading session, despite a broader market that is slightly off for the day. Shares of both satellite radio companies sank abruptly in the last hour of trading yesterday as a result of sudden investor speculation that antitrust regulators may not accept Sirius' proposed acquisition of XM.
On Tuesday, two U.S. lawmakers, John Conyers and Steve Chabot sent a letter to Attorney General Michael Mukasey expressing their concerns about the review process being undertaken by the Justice Department.
From the letter: "We were dismayed to learn of recent press reports suggesting that Justice Department staff may be trying to rush through the merger before you have an opportunity to fully participate, and that Assistant Attorney General for Antitrust Thomas O. Barnett may intend to grant the merger over the objections of department staff."
XM's price, up a dollar, or about 7%, and Sirius' price, up about $0.20, or about 5%, could be getting driven up today because of two factors: 1. buyers could be jumping into the stocks as they are both at some of the lowest prices since the beginning of September, or 2. short sellers could be covering their bets, locking in profits, after yesterday's rapid decline late in the day.
XM and Sirius stocks have both been extremely volatile since merger talks were first heard earlier this year in February. The possibility of a merger/acquisition between the two companies has made each stock a favorite speculative play among many investors and pundits.
On Tuesday, two U.S. lawmakers, John Conyers and Steve Chabot sent a letter to Attorney General Michael Mukasey expressing their concerns about the review process being undertaken by the Justice Department.
From the letter: "We were dismayed to learn of recent press reports suggesting that Justice Department staff may be trying to rush through the merger before you have an opportunity to fully participate, and that Assistant Attorney General for Antitrust Thomas O. Barnett may intend to grant the merger over the objections of department staff."
XM's price, up a dollar, or about 7%, and Sirius' price, up about $0.20, or about 5%, could be getting driven up today because of two factors: 1. buyers could be jumping into the stocks as they are both at some of the lowest prices since the beginning of September, or 2. short sellers could be covering their bets, locking in profits, after yesterday's rapid decline late in the day.
XM and Sirius stocks have both been extremely volatile since merger talks were first heard earlier this year in February. The possibility of a merger/acquisition between the two companies has made each stock a favorite speculative play among many investors and pundits.
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