a2gsg (< 20)

the case for GSAT

February 03, 2010 – Comments (0) | RELATED TICKERS: GSAT , TSTRQ.PK , ICOG

i believe that GSAT in the MSS sub-sector is a much more Drop-Dead Gorgeous than IRDM.

here's my case in brief:

just on the COFACE financing alone (finalized last july) GSAT is worth ~$5/share.

if you add in the Book/Fair Value of the all the assets, i.e. the value of WORLD WIDE HARMONIZED spectrum, the gateways owned around the world, the remnant satellite constellation, the technological developments such as SPOT, etc, money raised, loans arranged and guaranteed, SOCC/GOCC, supply agreements arranged, market testing so far, existing customer base (largest in the world), employment agreements, and all the rest GSAT should be trading in the $20 range.... but this illustrious industry segment is just soooooooooo out of favor at the moment and still has HUGE over hang (I call it malaria) from its and iridiums and ICO's previous (chapter 11'd) incarnations, it's why it trades at what it dose and is a significant steal at this price -- if you can just let the shares sit for the next 12 to 18 to 24 as GSAT's next generation constellation gets launched and becomes operational and let Mr. Market take recognition you'll have a multi-multi bagger on hand.

recommended reading:

the various Investor Relations presentations and Webcasts at http://www.globalstar.com/en/  as well as the 9/28/09 equity analysis at http://devilcapital.com/investments/GSAT