XM Satellite Radio Holdings Inc.'s stock took a hit Tuesday after a Dow Jones & Co. Inc. reporter quoted a
company auditor's concerns that the satellite-radio provider would not be able
to "continue as a going concern" without additional investment.
The wording, plucked from XM's latest annual report, is standard
"boilerplate" language that securities regulators require unprofitable start-up
companies to place in their financial statements, but the stock dropped $2 per share
Tuesday to $13 after the report was followed by other wire services.
To stem further bad reports, the company scrambled to issue a press release
noting that the identical language has been included in every annual report
since XM went public in 1999.
XM shares fell to $12.65 apiece by end-of-day