This is clearly manipulated. Everyone knew they would lower their estimates. Did anybody read the 1st quarter financials? It was clear they wouldn't make up the lost ground back in April. The pps in March dropped from +$7 to under $6 to reflect the lower 2013 guidance.Yet, why did they decide to release this news on the same day they released their DOD contract? I want to know who's behind the +10million shares short. Does anybody know what today's price action would have been if they solely released the DOD contract information with that many shares trying to cover? Instead of under $6, we'd be well over $8/share. Something is going on here and clearly there are more questions than answers.
I don't think there is any manipulation going on. It is clear what the "horizon" holds for Iridium. They will eventually be washed up in all the competition (Globastar, Orbcomm, Inmarsat, and heck, even 4G and WIFI). Margins will be very slim over time. If you remove all the emotion and minutia, it seems like the satellite guys are trying to broaden the market when it is actually a very narrow market. That said, I believe the market will never lie. Eventually Iridium will be operating on the margin. Short is the way to make money on this venturesome company/equity.
Wow your totally clueless! Iridium Next is not only going to be competitive with Inmarsat with larger bandwidth, but they are adding ADS-B receivers and will provide FAA Next Generation Air Transportation System surveillance capabilities. In 2017; they be raking in some profits.
I disagree. Washed up in the competition? Where have you been? IRDM is clearly the best of breed here. They're one of the few that is posting sustainable profits and growth. Have you even looked at the financials? GSAT's market cap is $884M, decreasing revenue, and negative earnings. IRDM's market cap is roughly half that, growing revenues, and positive earnings. IRDM's revenue is 5 times more and they beat GSAT on every possible measure. Trading at 7X earnings I think the shorts will start to take notice and exit abruptly.