Bruce Campbell (2)Sirius XM Canada Holdings IncXSR.TOHOLDMay 28, 2014

Sell? When something has moved down and an offer comes to take it out, the offer is always below where you bought it. The terms of this are pretty luridly textbook style of a powerful inner circle who has devised some methodology that serves them, and the little guy is going to get trodden on. He is hoping that more money will be able to be cranked out of the offer.

Currently in the midst of a takeover attempt by the US parent company. They bid $4.50 a share, but because there is a cash share split, it is sort of in the implied price of $4.80-$4.85 range. He doesn’t think this is acceptable, and feels it is worth far more. The US parent had been using coercive tactics to drive down the price, and are now trying to make an opportunistic bid at a very low price. He intends to vote against this transaction in the upcoming vote.

The problem right now is that this is going to be taken out by its US parent. Growth is slowing down. It just hasn’t generated the types of return that they should. He would be inclined to take your loss and move on.

(A Top Pick July 15/15. Down 11.05%.) One of the most egregious buyouts of all time, where the US parent is taking advantage of Canadian minority shareholders.

(Top Pick Apr. 13/15, Down 17.32%) They have been approached about a corporate transaction. He thinks there is a reasonable chance a transaction will be announced soon.

(Market Call Minute.) Good dividend yield. They may be getting a bid from their US parent. The suspected bid price is probably too low, but he would be turning into the strength (?).

(A Top Pick March 31/15. Down 14.2%.) Supposedly they are getting a binding offer from Sirius XM US. This is probably worth at least $1 more.

Have been approached on a preliminary basis about a transaction to take them private, but thinks the problem is that the price range is lower than what people were expecting. It scores well on valuations, so the buyer at this price is potentially getting a good deal. Trading around 7X Price to Free Cash Flow. There might not be a lot more upside from here.

The stock is down with this bear market. He doesn’t expect anything dramatic to happen by way of growth. This is going to continue to be held by some key investors, and will continue to pay a good dividend. It also pays special dividends. This is kind of a sensible stock without fabulous fire in it.

(Top Pick Jan 20/15, Down 30.07%) It has had trouble with revenue per subscriber. It trades incredibly cheap compared to the US equivalent. There is a massive disconnect. They are both running at the same margin levels. The balance sheet and the dividend are fine.

(Top Pick Dec 16/14, Down 24.14%) A high margin recurring revenue model. They still have double digit growth and have no impact from streaming. Marketing could do a better job at subscriber growth. He thinks they could be bought out. The dividend is safe.

This is in an area of growth. Consumption in cars is growing. There are more and more sales of cars. Thinks this will continue to do well.

(Market Call Minute.) Met with them recently and came out feeling that he didn’t absolutely have to own this stock. He would rather own other names.

His fear was of too many potential disruptors in this area, and he wasn’t sure that they could deliver. He would be tempted to be more of a seller than a buyer even though the yield is attractive. Technology is changing quickly in automobiles, and if car companies start giving away access to this type of service, it is going to be very hard to convince people to pay for it.

A lot of people swear by satellite radios. He would buy the US one if he were to buy it.