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Use Sirius Bonds to Play the Other Side

By Jim Cramer

 About this article:
 If you like Sirius, do not play the common stock. The bonds are the best bet. Not that long ago, in the summer, Barclays put out a terrific piece about the 3.25% Sirius converts due 2011. These converts, which currently sell at 88, could be a great play on any turn, because they will get paid off at a nice gain. Barclays likes it because there is no other Sirius debt due ahead of it, and if it gets in trouble, Liberty Media, the new investor that injected capital, will make that debt good, because bankruptcy wrecks the principal asset that SIRI brings to the table: its gigantic operating loss. I am also drawn to the 9.625% notes that mature in 2013, a piece of paper that has zoomed in value since the decent quarter Sirius posted, and which trades more actively than all other bonds....

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