This submit was initially posted here. The author, Willie Keng is a veteran group member and blogger on InvestingNote, with a username generally known as @Willie and has near 130 followers.
At first look, I assumed this acquisition made a lot sense — SATS/WFS deal would push the mixed firms to develop into a worldwide cargo dealing with participant.
In truth, SATS would finally diversify revenues throughout Asia, Europe, the Center East and Africa, and North America.
Supply: SATS/WFS Prospectus 3 Jan 2023
But SATS shares have fallen greater than 30%.
And even after the deal was accredited final week, shares had been nonetheless caught within the discount bin.
If the SATS/WFS deal had a lot progress potential, why is the market nonetheless undervaluing its SATS shares?
And extra importantly, will SATS nonetheless pay a dividend ever once more?…