A satellite hardware company left for dead, but with a breakeven profitable business, strategic alternatives in review and selling below its cash value.
Trading below cash with insiders holding 30% is exactly the setup that makes illiquid micro-caps worth the digging.
The real leverage isn't the discount — it's whether the strategic review timeline closes before the market finds a reason to re-price that optionality away.
Every "free operating business" stays free until someone decides it isn't.
How are you thinking about the actual post-return cash floor versus NCAV, since part of the asset base is receivables/inventory rather than pure cash? Also, do you have a source for the airtime economics/85%+ retention and MTData stickiness, or is that mostly your inference? Last thing: how do you avoid double-counting inventory in the SOTP if you’re already valuing the operating business as a going concern?
I like this idea. Have you done any analysis on what the tax situation is with regards to any gain on sale of the JV? Not sure what the laws are like in Aus.
Trading below cash with insiders holding 30% is exactly the setup that makes illiquid micro-caps worth the digging.
The real leverage isn't the discount — it's whether the strategic review timeline closes before the market finds a reason to re-price that optionality away.
Every "free operating business" stays free until someone decides it isn't.
How are you thinking about the actual post-return cash floor versus NCAV, since part of the asset base is receivables/inventory rather than pure cash? Also, do you have a source for the airtime economics/85%+ retention and MTData stickiness, or is that mostly your inference? Last thing: how do you avoid double-counting inventory in the SOTP if you’re already valuing the operating business as a going concern?
Great article man, actually interesting
Subscribed, would love to have you along too🙂🙌
I like this idea. Have you done any analysis on what the tax situation is with regards to any gain on sale of the JV? Not sure what the laws are like in Aus.
Numbers are post tax
Thanks.