$9 billion Reasons to Sell Sirius (NASDAQ: SIRI)

NEW YORK - The company officially has 3.9 billion shares outstanding, however Liberty Media has the right to 40% of all the outstanding shares of Sirius. This means the actual number of Sirius shares is 5.4 billion (3.9*1.4). The Liberty Media stake will be converted into common shares, since the liquidation preference on the preferred share stake is 0.001 cent and the shares are worth close to $3 billion.

Despite its poor growth prospects of 6% next year. The company is valued at 25 times adjusted EBITDA which is earnings before interest tax and depreciation plus loss on debt extinguishment. The company is being valued at 70 times adjusted earnings.