Inmarsat Share Discussion Threads

[steeplejack] 23/5/2016 08:16

FTSE 100 expulsion looms.

[steeplejack] 14/5/2016 11:01

Berenberg seen unconvinced by their own hold recommendation.Shares seem likely to remain under a cloud for now.

[steeplejack] 13/5/2016 19:42

Barclays stockbrokers market report today:A profit-warning from satellite-operator Eutelsat led analysts at Berenberg to question the explanations given by London-based Inmarsat to explain its own recently lowered near-term guidance.Critically, Eutelsat cited pricing pressure and lack of growth in data and a much weaker-than-anticipated renewal rate of 65% with the US government.Inmarsat was a 100% data outfit and Washington was its biggest customer, analysts Laura Jenssens, Sarah Simon and Robert Berg explained in a research note snet to clients.Eutelsat referenced pricing pressure after large amounts of high-throughput satellites (HTS) launches and said its mobility business was "stable" according to the analysts."With [Inmarsat's] Global Xpress being an HTS data constellation, we think it cannot be immune to the pricing and growth pressures seen at Eutelsat and SES, albeit the magnitude of which is questionable. We note, however, the recent guidance cut may not be a coincidence," they explained.Eutelsat also said renewals with the US administration were running at 65%, so since volumes were at a 'normal' 85% rate that meant pricing had seen "huge cuts" in recent months, Berenberg concluded."With Inmarsat discussing slower ramp of GX government revenues (ie timing, rather than structural), this raises questions as to whether the revenues are delayed to 2017/18 or in fact pricing pressure and competition is eroding this opportunity," the analysts added.The London-listed outfit had suggested a slower ramp, but that revenues will come through at the same level next year and reiterated medium-term guidance."Inmarsat's reasoning may not be realistic," Jenssens, Simon and berg said.All told, the analysts said they still saw downside risks to its medium-term estimates for Inmarsat and even more so now.They kept their 'hold' recommendation in place as wel las their target price of 880p.However, they added that: "on our current estimates the stock still looks far from cheap [...] To justify our DCF-based GBp880 valuation, Inmarsat needs to start winning contracts to prove it can meet these expectations, particularly as competitors such as Gogo seem to be winning share

[losos] 13/5/2016 13:22

wad collector - "though have bought too early this month on a few stocks."

We have all done that at some time. I am feeling quite smug today because I have managed to keep my powder dry which is helped by the simple fact there ain't much powder to start with ha ha.

As someone who once had a career in a similar industry to ISAT I am a fan of them but it is true that it will be a while before the benefit of all their technology bears fruit, and we need the world economy to get of it's backside and start growing again.

[wad collector] 13/5/2016 10:21

Added at 735 . I think the drop is overdone , though have bought too early this month on a few stocks.

[steeplejack] 13/5/2016 09:00

09 May 2016, 08:10Source - SMW
Berenberg today reaffirms its hold investment rating on Inmarsat PLC (LON:ISAT) and cut its price target to 880p (from 890p).JPMorgan doesn't appear to have adjusted its price target of £11 or its overweight recommendation post the RNS.


Went XD,31.7cents (22p)yesterday and held up relatively well but looks to be in freefall now.In March,the Berenberg note raised a number of concerns (one revolving around the aviation product not necessarily being the best available)but they felt these worries were largely discounted in the then share price.Not so and by all accounts the reduced guidance from the company caught them a bit by surprise.

Technically,I agree that the shares look vulnerable to a fall to £7.However,at £7 the shares would be yielding near 5% and the multiple would be around the 17 mark.The shares are down a quarter in the last 6 months.That said,you've got stocks like Legal and General,Glaxo etc yielding over 6% ,so it ain't that special in this market struggling with Brexit uncertainty,China slowdown ...and more .

[shoobmeister] 13/5/2016 08:03

Yes, I would wait till at least £6.90 before even contemplating buying. Might be a small bounce around 760 but downward trend is firm

[tsmith2] 12/5/2016 08:57

PE too high..Gap down to £7?On watch list

[steeplejack] 06/5/2016 09:55

More considered comments to be found in FT in markets live section made on Thursday.Maritime is the major culprit.Aviation is the potential saviour.Latter could be enormous revenue spinner in China.Company saw some pick up in maritime in March and April.Tricky one.Yield over 4% ,PE around 20.Chart horrid suggesting fall to £7 when shares go XD.But on balance will hold after sharp fall.

[steeplejack] 06/5/2016 08:58

Daily Telegraph,Questor, turns seller having been a buyer 6 months ago.

[muffinhead] 05/5/2016 16:27

Maybe.....
may wish to be cautious as key support has gone today on high volume
Also still on a high growth PER even after today's fall

[steeplejack] 05/5/2016 12:14

The markets are suffering from over regulation and the consequent contraction of proprietary books.In the past,there were counter balances that steadied the ship on downgraded expectations etc.Not so now,like starlings leaving a tree en masse,the price plummets and neither brokers or institutions seem prepared back a contrarian view.The markets lack liquidity and that leads to this excessive volatility and frankly it does nothing for the stockmarket's credibility.

This stock has been overhit.

[losos] 05/5/2016 11:02

wad collector - "Decided to add a few at 882"

Good move, may do the same today, ISAT is now my only telecom holding, and long term they should recover, smart phone use on an airplane, can't get better than that ha ha.

[weemonkey] 05/5/2016 09:33

Jam tomorrow type conference call . .

In fact no jam till 2017 earliest . .

lowered expectations all round

[wad collector] 05/5/2016 08:28

Q1 results have knocked 50 p off the share price this morning .

-- As a consequence of the above we are revising 2016 guidance for revenues (excluding Ligado) down to a range of $1,175m to $1,250m. The new guidance for Ligado revenues is higher than expected.

-- The medium term outlook and guidance remains unchanged.

Decided to add a few at 882 , suspect it will bounce later, and Xd in a week.

[wad collector] 30/3/2016 08:50

His second post?

[jugu] 24/3/2016 08:30

What have we missed?

[undervaluedassets] 24/3/2016 07:02

Huge 'miss' here by people on this board when reading the results statement . .

[wad collector] 10/3/2016 16:34

Tempted to add some more ; looks like market volatility taking this towards £9 .

[spike_1] 09/3/2016 09:03

Re: no RNS. My guess is because the contract is not in itself (as far as I can see) revenue enhancing, although over time it most probably will be.

Best wishes - Mike

[enami] 08/3/2016 16:25

Going against the down market today

This to explain I suppose...strange no RNS

Press Release

08 March 2016: Inmarsat, the world’s leading provider of global mobile satellite communications, has been awarded a contract by the European Space Agency (ESA) to enhance Air Traffic Management (ATM) in Europe with a new generation of satellite-based data link communications.

[spike_1] 07/3/2016 15:20

Also bought in at 920 (very small amount), having been stopped out slightly higher thinking it had bottomed
Best wishes - Mike

[wad collector] 03/3/2016 11:19

Results are worse than expected but seems like a good time to get back in to me having been out a few yrs ; bought at 920.
Not sure the BB header is accurate any more! The yield is no longer impressive.

[redips2] 03/3/2016 11:10

This mornings gap down should fill in due course .

[xxxxxy] 29/2/2016 20:08

Go for it??