XM Radio's stock dips

Author:
Publish date:
Social count:
0

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
Wednesday.

Related