Last June hedge fund Kerrisdale Capital solidly backed Intelsat and SES over the C-Band Alliance’s likely significant gains from the sale of their C-Band spectrum over the US.
In January it emerged that Kerrisdale had largely cashed in on its profits from its stake in Intelsat selling 7.79 million of its 8.48 million shares, and banking some $234 million in the process.
It has now come out with further advice to investors saying that the recent share price fall – down 36 per cent since last year’s ‘highs’ – at Intelsat represented an attractive entry point, and saying “recent international spectrum auctions suggest the C-band spectrum is worth substantially more than what is implied in the current stock price.”
“In addition, what makes risk/reward particularly attractive are signs the CBA is winning support from key stakeholders, particularly AT&T, while continuing to lay the groundwork for secondary market agreements with interested parties, “states Kerrisdale.
Kerrisdale also reminded clients that its long-term price objective for Intelsat remained at $151 per share. Over the past 5 days Intelsat’s share price has been in the $23-$26 range. On February 7th shares closed at $22.97.