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

The Street Starts To Believe In Intelsat

One of the key themes running through many of my recent investment ideas includes highly leveraged companies (both financial and operating leverage) with visible revenue streams. The idea is that as a subject company deleverages, value should shift to the equity as debt is retired, all else being equal.

Intelsat (NYSE:I) is a good example of this theme given Intelsat's $2 billion market cap makes up only a small 12% sliver of its $17 billion enterprise value. As such, Intelsat has multiple levers to drive value, including restructuring/retiring debt and improving utilization of its fleet which leads to significant incremental profit due to the high operating leverage for this fixed services satellite firm. To give an idea of...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details