Meltdown at Intelsat
February 25, 2016
These are troubled times for Intelsat. February 25th saw further dramatic falls in its share price on the New York Stock Exchange despite reporting that it had appointed Guggenheim Securities to make a complete examination of its financing structure.
On February 22nd its share price tumbled from $2.93 to $2.54, although it recovered somewhat as the morning went on to finish the day down 7 percent at $2.80. The fall took the operator’s market capitalisation below $300 million (to $291 million). The following day saw a further slippage (down 8.82 per cent to $2.48), and an even larger fall on February 24th (down 12.15 per cent to $2.17). At one point the price hit $2.13. The fall takes Intelsat’s market capitalisation down to $233 million.
The new price is a 12-month ‘low’ for the satellite operator. It means that the company’s share price has crashed some 81 per cent over the past year (from a ‘high’ of $13.25).