Yoel Gat,Gilat's Chairman and CEO, stated yesterday,"our success in the marketplace, not patent infrigment, is the real catalyst behind the HNS action. We remain unconcerned by the patent claims as asserted to date." It seems that every body agrees to this statement. I'm quite sure that we will see on coming Monday that Gilat's business are doing well and will continue according to plans, unaffected by the allegations of HNS.
Share price do not support your optimism. Most of investors do not write their thoughts on this board.The share price reflects thier thoughts.With EPS of 0.26 or even 0.35 for last Q and HNS action (true or not true). GILTF is not exactly in "recommended list" of many investors.Just MO.
I don't think the lawsuit or reduced EPS reflects the opinion of too many holders of GILTF or else the volume would have been higher on Tuesday's plunge. But certainly these two events make new investors wary. JMO. --Sanjay
You are right about the market. Now the market thinks that the value of Gilat is only $1.4B. 3 months ago the same market was thinking that the value is $3.3B. Who is the market? Probabely composed from sophisticated investors,less sophisticated invesrors and some ignorant investors.Analysts should be more sophisticated than the average invesrors. All of them recommend to buy GILTF.Even knowing that Q1EPS is only $0.26 and knowing about the patent suit, no one came with downgrading. But many investors have doubts about brokers recommendations, based on their experience.(See what is going with DELL,up 12% today.)We also have to assume that Gilat's partners in GTH (Microsoft,Echostar and ING)checked deeply its business plans (and also the patent aspects) before investing multi-millions $ to this joint venture. I believe that these respected companies know better than the average investor on the potenial of GTH. I believe that this board is for investors trying to share with others the info they got and also their true opinions. I was trying to express my opinion on the issue of patent suit. This issue should bother any investor. After reading some other opinions, I came to the conclusion that the suit has no real impact on Gilat's business(But had painfull impact on market price which is a natural reaction). I am not trying to be optimistic just because I am a shareholder, but I truly think that market had immediate overreaction, and now after analysing the issue should understand that Company will continue with its plans unaffected by the allegations.