EchoStar ($SATS) Trade Call Based on Spectrum Liquidation Catalysts

about 2 months ago

Guowei Zhang

"My perspective is that the stock is now trading with a fantastic risk-reward profile. Based on back-of-the-envelope math, EchoStar has already unlocked about $23 billion from spectrum sales, with additional spectrum assets potentially returning another $11-$12 billion -- which nets a baseline value around $55 per share at a time when the stock trades around $62-$63. With the crown jewel AWS 4 spectrum estimated to add roughly $26-$27 billion in value, this trade could push the stock close to triple digits within the next two to three months. I want to see it hit around $100 a share just from the realized spectrum value."

The insight recommends taking a position in EchoStar ($SATS) as the current spectrum liquidation process provides a robust floor and a significant upside potential. With recorded spectral transactions already unlocking over $23 billion and additional assets valued at $26-$27 billion, the stock is positioned to move from current levels ($62-$63) toward a target near $100 per share. The near-term catalyst is expected around the upcoming Paris show, making this a high conviction, actionable trade for short-term investors.

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