Comtech Telecommunications (NASDAQ:CMTL) is a telecommunications equipment and infrastructure company. The company operates in two segments: satellite and radio frequency equipment (mainly antennas, amplifiers, modems, and troposcatter equipment) and 911 network services (routing, localization processing, VoIP). None of these businesses is particularly well positioned or enjoys good
Comtech's Restructuring Is Risky And Only Makes Sense Under Very Optimistic Assumptions
Summary
- Comtech Telecommunications is a telecommunications equipment and infrastructure company involved in satellite equipment and emergency call networks.
- The company has been mismanaged for years, with high CEO rotation, and a difficult leverage position.
- This week the company announced the decision to sell one of its two segments, a default waiver, and problems to file its 10-K on time.
- Analyzing different divestment scenarios, Comtech only seems a reasonable investment under very optimistic conditions. For that reason, it is not an opportunity.
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