A $20 Billion Price Tag For Sirius Satellite Radio

By Scott Sacknoff (SPADE Investor): Let me not be the first to say that Reverse Morris Trusts (RMTs) are complicated. Over a year ago when the Liberty Media (LMCA) plan for a possible RMT with its Sirius XM (SIRI) stock was raised, I did some research to understand what an RMT was and whether it would be good or bad for investors.

Scott Sacknoff (SPADE Investor) submits: Although headwinds still exist (which should be resolved somewhat with the approval of the FY-2011 budget and release of the FY-2012 next week) the aerospace and defense sector has been showing significant strength over recent months.

By Scott Sacknoff (SPADE Investor): I could spend this month’s commentary talking about technical trends, resistance levels, fundamentals, etc. but the reality is, that would be a waste of time -- yours and mine.

By Spencer Osborne: If you are invested in Liberty Media (LMCA) you are likely well aware of the intent of the company to gain control of satellite radio provider Sirius XM (SIRI).

By Spencer Osborne: The twists and turns keep coming in the soap opera of the Liberty Media (LMCA) quest for "de facto" and now "de jure" control of Sirius XM (SIRI).

By Spencer Osborne: Liberty Media (NASDAQ:LMCA) is continuing their path toward control of Sirius XM Satellite Radio (NASDAQ:SIRI) with the purchase of an additional 60,350,000 shares of SIRI at a price of just under $2.13.

By Spencer Osborne: If you are invested in Sirius XM Satellite Radio (NASDAQ:SIRI) you are certainly aware of the newly developing drama surrounding a possible move by Liberty Media (NASDAQ:LMCA) to gain control of Sirius XM. However, there are many that are newer to this equity and might not be familiar with the long and sordid story.

By Spencer Osborne: If you are invested in Sirius XM Satellite Radio (SIRI), you are likely aware Liberty Media (LMCA) holds preferred shares that equate to about 40% of the company (if converted).