Maintain Hold on AST Space Mobile Amid Elevated Risk and Uncertain Upside
"So, because of the elevated risk, I'm keeping AS Space Mobile. I had it rated as a hold all year long here. The reasoning being it's too early for me for my investment taste. It's too speculative at this point. It has huge upside to be sure, but as it stands right now, I can't tell what the actual upside is. I have a difficult time quantifying that upside."
The speaker maintains a hold rating on AST Space Mobile due to elevated risks and uncertainty regarding its future cash flow and revenue potential. While acknowledging significant upside from strategic partnerships like the one with Verizon, he highlights that the lack of concrete data makes it difficult to quantify the stock's true potential, reinforcing a cautious stance.
Company Commentary: Bangalore Airport IPO as a Catalyst for Repricing
"So it's in the NAV just to clarify they have it's in the books for 2.6 billion, I think it's worth more than four. But if you think longer term, like really longer term, it could be worth so much more. I think you're talking about 110 million people per year, and if you just do the math, 110 times 100 gets to 10 billion. I don't think in this excessively hyped Indian stock market this is crazy; 4 billion is conservative. I think you can get to five or six on 4 billion, if you assume that the current share price is 17 and the NAV is 21."
Michael Fritzell provides a valuation commentary on Fairfax India, emphasizing that the market is undervaluing its net asset value. He explains that if the company, largely driven by the Bangalore International Airport asset, trades at around 4 billion, the share price could reprice from its current levels ($17, NAV $21) to around $32 per share, making the upcoming airport IPO a critical catalyst.