DISH hits new 52 week low

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Peter Parker

Formerly Geronimo
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Sep 9, 2003
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Not a good day at all. Kind of a bad day to start a stock forum donchathink?

:what
 
"Exactly how does that theory work again?" he asked.
 
It was a rough day for the market overall, but E* and Sirius certainly took their lumps.

With the increase in SAC for E*, people are realizing that E* is having to pay more and more to buy their subs. The market is maturing. How many people in the US DON'T have either cable or dbs? It's going to take quite a lot of incentives to buy those people, if they are still watching OTA. E*, D* and the cable cos can trade subs back and forth, but there's only so many households out there. The dbs companies are going to have to work on increasing ARPU.

The sat radio companies are going to struggle until/if their product becomes more mainstream. I still can't make myself pay $10 a month for radio. From listening to Sirius via the web, I don't really think I am missing all that much, certainly not something worth spending $10 monthly.
 
Isn't it normal for stock prices of an aquired company to drop so that the shares are more affordable for the takeover company to buy the mass lot?

If Charlie were to strategically drop the prices of shares, then sell his bunch off to a company, wouldn't this lower the purchasing cost of the company?

Just a layman's point of view.. no education behind it.
 
Generally when a company is acquired or is rumored to be a takeover target the price rises. The acquiring company stock often goes down due to investor fears of impending debt and perhaps other concerns specific to that acquisition.

I general when a company is bought out the acquirer offers a premium over the face value.

If Charlie were to play with the stock as you suggest he might find himself in a world of trouble. I think the price dropped for the reasons cited in Mr. King's post.
 
I knew it was one way or another...

Maybe I shouldn't be so anxious to get my Business 101 grades back, huh?
 

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