Mike Arnold
Long only, small-cap, tech, growth at reasonable price

Gilat Satellite Networks' Shares Present A Buying Opportunity

Gilat Satellite Networks (NASDAQ:GILT) ("Gilat" or "the company") is an undervalued, niche satellite communications equipment manufacturer and services provider. Gilat shares trade both in the United States and Israel (where Gilat is headquartered). There is ample volume/liquidity domestically for private, US based investors to establish a position (average daily volume is around 40,000/shares).

After a recent rout in Gilat's share price, the market is pricing Gilat at $176 million. However, I think the market has mispriced this business and that significant upside remains, coincident with a number of underappreciated catalysts and subdued risk as a result of Gilat's fortress balance sheet comprised of $42 million in net cash.

My tabulation of net cash includes $16 million from a ...

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