Liberty Media Move Won't Help Sirius XM Bulls

There is no denying that Sirius XM provides a tremendous amount of entertainment and content that is easily accessible, all at the push of a button.

But does that make it a great investment?

I think investors continue to take the idea of "buying what you know and like" to an unprecedented altitude.

If you are holder of Sirius at current levels, the smart thing to do is to exit those positions now before the funds and institutions start unloading their shares.

Also, the CEO, Mel Karmazin, still has 49 million more options to exercise. I wouldn't be surprised to see more insider selling, including some from Karmazin, between May 16 and 18.

With Liberty not paying more than $2.15, investors would be smart to sell now and move on before the downgrades start flowing in.