Sirius Soars 33 % , Today ! Why ! and what is next ? Should u buy ??

Sirius XM soars nearly 32% on a day markets are off over 2%
Major movement, Sirius Satellite Radio (SIRI)

After setting a new 52-week low, which is actually more like an all-time low, this morning at 29.5 cents,Sirius XM Radio Inc. (NASDAQ: SIRI) shares have soared over 33.6% to 38.17 cents .Yes, it is still traded on the Nasdaq, for now.Pink slip whating to happen ! Maybe a reverse stock split ??

It's been rather obvious why Sirius stock has been pounded: the weak economy, declining consumer spending, slowing auto sales, increasing debt combined with difficulty to raise capital -- cashflow problems -- and so on. But it's not that clear why the stock is rising today.

The most obvious reason for the jump in the stock price would be because even the smallest change at these price levels is a considerable percentage jump. That's partly why stocks are usually delisted from major exchanges when they reach, and stay in, penny stock territory. But for now, the Nasdaq has suspended the minimum dollar listing rules until January 16, 2009 as the number of stocks under a dollar has increased four fold the past month.

Another reason why there might be some optimism is a completely unsubstantiated rumor regarding a buyout. Over the years, Sirius has been rumored to be taken over by Microsoft, Apple, Google and CBS among others. Today, one reader suggested Disney is the one rumored to take over the troubled satellite radio company. Needless to say I put very little stock in this.

If a takeover is out of the question, what can Sirius do to save itself? That's been the question on many investors' minds. To meet its cash needs, Sirus needs to raise capital -- by borrowing more money if it can, or issue more stock, as well as cut programming costs -- yes, get rid of talent. Even then its future is somewhat questionable.