Seeking Alpha

Iridium rallies again; SA Pro author calls shares "extremely cheap"

SA Pro author Buy the Dip, Sell the Rip notes Iridium (IRDM +3.5%) trades at a mere 60% of book value, something deemed unjustified given the company has been "solidly profitable" the last three years, and has major growth opportunities in the form of its Aireon traffic surveillance venture  and NEXT satellite constellation (launching in 2015).

Among other things, the author notes Iridium has landed a series of major contracts this year, stands to benefit from growing DoD reliance on commercial satellites, and thinks NEXT's technology benefits, limited competition, and (debt-based) financing structure will help Iridium deliver long-term growth and margin expansion.

Shares rallied on Friday in response to news that Aireon, which has agreed to pay large hosting and data service fees to Iridium, is receiving $120M in fresh funding.

Comments (2)
  • Chris DeMuth Jr.
    , contributor
    Comments (8819) | Send Message
    There are a number of interesting satellite opportunities. Here are two that we particularly like:


    Loral Launching Into Orbit: (LORL)


    +500% YTD: (OTCQB:GSAT)
    23 Dec 2013, 02:56 PM Reply Like
  • sbrncra
    , contributor
    Comments (257) | Send Message
    outdated air controller equipt and government needs make $IRDM a great buy!!!
    and Facebook should by stock with their $60 mil!


    Short Percent of Float
    19.79 %


    i like this!!! Buy IRDM!!!
    5 Mar 2014, 07:15 PM Reply Like
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