Category: Satellite

Late-Cycle Behavior

Virgin Galactic founder Richard Branson.

Investors’ new mantra: Apple AAPL, +1.71%  and Amazon AMZN, +1.25% are for boomers — we buy Tesla TSLA, +7.29% and Virgin Galactic SPCE, +11.58%. Apple and Amazon are pedestrian stocks of yesterday; they do nothing interesting. Vacationing in space on a Virgin Galactic flight is around the corner. Soon we will be mining on Mars. When we return from Mars to the lowly planet Earth to visit our aging parents, we will be getting around in flying autonomous electric taxis from Tesla and staying in homes powered by Tesla solar roofs and batteries.

Public service announcement: If you’re an investing novice, you are setting yourself up for a painful lesson

Both Virgin Galactic and Tesla provide short-term trading opportunities for sophisticated investors both from the long side and the short side. Our system gave a signal to short-sell Virgin Galactic for a very short-term trade near the highs.

However, there was no point in publishing that signal because the shares were not readily available to short. The plan is to trade only those setups where there is reasonable risk control. It is also important to pay attention to Arora’s 14th Law: “To be successful at investing and trading, become a master of position sizing.”

Nigam Arora  Nigam@TheAroraReport.com

(IMASY) ~ Inmarsat


Inmarsat convinced by $3.4 billion cash buyout deal

(Reuters) – A private equity-led consortium agreed to buy Inmarsat Plc for about $3.4 billion in cash after the British operator rebuffed a slightly lower bid from U.S. rival EchoStar last year.

The consortium, which includes UK-based Apax Partners, U.S.-based Warburg Pincus and two Canadian pension funds, is betting in part on Inmarsat’s reputation for selling faster and more reliable in-flight Wi-Fi to commercial airlines worldwide.

Inmarsat shareholders will get $7.21 cash, or 546 pence per share. Inmarsat’s shares were up 8.9 percent at 551 pence by 1422 GMT, higher than the offer price.

The company was the first international satellite operator to be privatized, and Apax was part of the group that invested in 2003, before taking it public two years later.


Staff at satellite communications company Inmarsat work in front of a screen showing subscribers using their service throughout the world, at their headquarters in London March 25, 2014. REUTERS/Andrew Winning/File Photo

Inmarsat does not expect regulators to pose major hurdles to the takeover, given its experience with regulators in the United States and Britain, a company spokesman said.

The offer comprises cash of $7.09 for each share plus a previously agreed final dividend of $0.12 per share. That represents a nearly 45 percent premium to Inmarsat’s close on Feb. 27, the day before media reports said EchoStar was expected to renew its interest in the company.