RE: GM today14 May 2018 17:08
PensionDeficit,
Well, Im no expert. But Ill give you my read of all this.
SAT is growing inorganically in a market that has slow organic growth. In my opinion they are trying to buy up small providers before the satellite technology that will become available in the next few years becomes fast enough and cost effective enough for the mass market. In 2 or 3 years time this is actually a real possibility, particularly in Europe.
Organic growth is the key to this business, both for its procurement objectives and its long term future. I think thats why you might find the word organic growth so often mentioned in their updates.
Organic growth allows them to continue justifying raising captial through releasing equity. So far this has resulted in SAT having a footprint in all the major countries in Europe and are therefore primed to take advantage of new technologies yet to reach the market. I think they will continue to buy relatively small providers in new territories with strong fundamentals for next few years, to do so they need organic growth to keep the company going.
In the short term its all about organic growth, in the long term its about being placed to take advantage of new High Speed Internet services provided by Satellite.
In the short term youll only ever make 10 - 20% on this share as they will continue to dilute or take on debt to grab as much land as they can. In the long term, you stand to make a lot more as I think their market will expand rapidly in the future.
Again, this is just my opinion. If your in for the pennies then you can look at the buys and sells. If youre in for the pounds, you put the kettle on. Happy for feedback on this, I may very well be completely misguided lol.
DYOR.
Sign In
Follow the stocks
