is that supposed to be good or bad. For me it is good. Means discount to where it can be vs going further and further from the top.
Key here is it is growing as a trend, so stock price should grow as such.
There are a lot of long/short hedge funds out there that have to short to justify their fees, they don't have a choice. Gogo is an easy target because based on today's cash flows it looks expensive. The short books at these hedge funds have been run over by this market, and Gogo will to it to them again (especially when they put out guidance next year and Ebitda will be up substantially, because then all of a sudden the stock doesn't look expensive). I've read a lot of the analyst reports on Gogo, and quite frankly I find their analysis pretty sad. Their modeling looks good, and I think they get the business model, but they all make the same mistake. They all place some multiple on next years Ebitda. By doing this, they are saying the ROW segment is worth negative $2B+ in value. This is just stupid, as it's arguable their greatest market opportunity. A better analysis would be to do a sum of the parts valuation. If they did that with BA and CA-NA, and put a value on ROW based on the market opportunity (discounted back) they would all come up with a much larger number. Lastly, their terminal multiples are way off. A business that has a long term annuity stream should get big multiples (See Sirius). At their investor day they compared themselves to Sirius, and I think that is a fair comparison. Once the equipment is on, it doesn't come off, this is a long term/high margin annuity business. Businesses like that get monster multiples.
It is inching its way higher every time it retraces and then reverses upward to a new 52-week high.
Loaning them more money won't fix the issue either. They would need a giant reform of their entire Government and economic sectors to fix their problems. They have such a jacked up system.
It's all Greek to me. This has been going on since 2009. Kick them out already and move on.....
Anybody ever noticed the SWKS. I have noticed for long time but never I owned. if u look at the chart for 1 year it run from 47-110 for 2 years 21.99 to 106. I firmly believe this may go beyond your imagination. The reason is this the one who dominate in this field. I may wrong in your thoughts. But I am holding this is about 2 yeas and I have ci9nsiderable profit too. But I am waiting and I am a long. If some one HAVE SOME OPENON ABOUT HTIS PLEASE SHARE WITH ME.. WITH THANKS
The boys on CNBC should do their research first to keep from embarrassing themselves. Virgin and Delta are Gogo clients. All other planes will be fitted with the satellite capable 2ku. Also Gogo is about to release the security monitoring for aircraft which now the government will subsidize. More revenue for Gogo.
Absolute hit job......United and gogo singled out and only 5% approval below Jet Blue which was raved about at 48%...... Virgin America 100% and Delta at 80%, both gogo and ignored! How did Jet Blue get raves at 48% and other gogo customers outperforming ignored? Shameful and CNBC is exposed. Thank you.
Hit piece on CNBC. Spoon Feed to them by . . . . shorts. If CNBC is on the job, you know that it is only "news" provided by interested parties, mostly shorts but sometimes longs. They, CNBC, haven't a clue; including the former High School Sports Reporter (proudly expressing her cred for being on CNBC), Melissa Lee, leading the ever so wise "Fast Money".
not to discourage someone expecting a big run up, unless there's a significant fundamental change like acquisition, 10 airlines signed up and running in 3 months or 6 months, all at once, expect the ramp up in price to be in line with the ramp up of planes and potential revenues.
You just need to be patient, and that's how the management of this co set it up. It will speed up once they get the license for the additional spectrum plus ku2 band. It will be a slow but steady rise, with no more than 10% down corrections. That's the good thing about it. The big boys already believe in Gogo with 60%+ Institutional holding and it will slowly go up from there.
Need an education. I basicly think I understand your summary and greatly appreciated. But if the big boys start believing in gogo, I would think the relatively small float will dry up fast and add that to the large number of shorts. Is it possible that gogo is a cork getting ready to pop?
read my explanation I posted in the previous message titled complicated debt financing. It will move but slowly.