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Iridium Communications Inc. Message Board

  • funnnyman90210 funnnyman90210 Mar 27, 2013 5:18 PM Flag

    The IRDM Story!!!!!

    So I get the thesis here: Co. loaded up on debt, building new network and will reap benefits once network in place. Great!! Risks include: more $$ needed to build network, no debt capacity, so they will dilute the heck out of current SH' with issuing more stock, risk of the rocket exploding on way to space, and risk of the network not garnering enough demand and cash flows falter. All great risks. That's all fine. But that is all fundamental. And SH are adults and can stomach the risks. Thats why the stock is trading at such a big discount. (I think) - But, one of the largest shareholders - Greenhill - is selling their entire stake and has been doing that for last couple of years. They still have a huge chunk of stock which creates an overhang on the stock. Every time it tries to go over 6.50 or 7, they beat it up. Is that what's happening? Anyone? Just trying to understand the story here....

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    • I think you will see many more investors join this post if IRDM plays its cards right and the stock starts to move. We could be considered the early settlers (early=pre-NEXT). As NEXT becomes more real, this stock will easily go into double digits territory. Very little could move this stock down from here - just DON'T ISSUE MORE STOCK - PLEASE!!! Losing more government $$$ is also a negative for our status quo...In any case, I hope some smart money starts nibbling here soon!! Still pretty high risk here needless to say...There is no shortage of IRDM skeptics out there - Short % of Float is 14% (or 7.7M shares) and growing - so if there's any good news, you will see a little squeeze. Maybe not exactly NFLX style squeeze, but still a squeeze.

    • Nice start for the day - hope it lasts!! Any real news out there (other than that relentless idiotic spammer)

    • Actually this is wrong for certain in one account. The stock has been a lot higher that $7, so this cannot be the case. In the last few years, the stock has spent more than half the time trading above seven and as high as around ten. So your comment is wrong in that respect. I think that the primary reason why the stock trading between six and seven lately has to do with the lack of growth in the top and bottom lines. All the company has to do is show increase sales and revenues and the price will go up quickly regardless of all the other negatives.

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