Kerrisdale Capital Issues Positive Report on Intelsat S.A. & SES S.A. and Announces Conference-Call Schedule
Summary
"The private market approach set forth in the Intelsat/SES plan is the most sensible way to make this spectrum available for 5G use while still accommodating current incumbent users of the band," said Sahm Adrangi, chief investment officer of Kerrisdale Capital .Over time, FCC rulemaking under both Democrats and Republicans has shifted towards flexible licensing, under which licensees are free to do what they wish with their spectrum, including selling it, leasing it, and subdividing it, as long as they comply with certain basic rules intended to protect other entities from harmful interference."The core idea of the Intelsat/SES proposal – give the incumbent licensees the right to repurpose the band and sell some or all of it – fits squarely with the current thinking of FCC spectrum policy," Adrangi said.NEW YORK, June 27, 2018 /PRNewswire/ -- Kerrisdale Capital, a private investment manager, has published a report explaining its long position in Intelsat S.A. (NYSE: I ) and SES S.A. (EPA: SESG), two of the worlds largest satellite service providers, which collectively account for more than 90 percent of the revenue generated by the C band in the US.Kerrisdale believes that Intelsat and SES are worth much more than their current share prices – 9x more and 3x more, respectively – as the FCC will likely approve their proposal for repurposing parts of their spectrum for 5G mobile use in the near future.