Sirius Booms Back 35 Percent; Still Just a Penny Play

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Day-traders are riding a penny-chasing rollercoaster on Sirius XM Radio (SIRI), a stock that boomed nearly 35 percent in Thursday trading.

That follows a 52 percent decline on Wednesday, a freak-out fueled by potential bankruptcy, takeover talk, and a sprinkling of investor profit-taking and fear.  At the bell, shares or SIRI ended at a woeful 7.4-cents, a 34.55 jump on the day.

The run-up reflects some trading games, though new information is floating.  Liberty Media is rumored to be discussing an acquisition play with Sirius, though nothing substantive has emerged.  That suggests casual overtures, or a potential attempt by Sirius chief Mel Karmazin to inject competition into a buyout discussion dominated by EchoStar.

Meanwhile, Sirius is now swimming against bankruptcy, a near-meltdown position that sadly fits the current economic backdrop.