GuruFocus Real Time Picks
reported that T2 Partners'
has increased his stake in Iridium Communications Inc. (
) by 3.69 percent, a purchase of almost 20,000 shares.
Acquired in 2009, Tilson began his holding with 757,950 shares,
bought at an average price of $8.73. After this latest
transaction, Tilson holds a total of 540,759 shares, equivalent
to 0.71 percent of Iridium's outstanding shares. Last year,
Tilson purchased shares throughout the year, except in the second
quarter, when he shed 394,348 shares, about the time the stock's
average price slightly rose $1 or so.
Headquartered in Virginia, Iridium Communications is a mobile
voice and data satellite communications network, which offers
single subscriber devices that work worldwide.
Tilson feels that the stock is greatly undervalued, and likes the
fact that Iridium is only one of two major players in the global
satellite communications industry.
Due to its worldwide coverage, Iridium has captured the client
base of the U.S. Marines, Air force, Army and other government
In Tilson's 2009 Iridium presentation, his firm highlighted that
Iridium's market share has grown rapidly, as well as its revenue,
operational EBITDA and subscribers.
data by GuruFocus.com
On GuruFocus, Iridium showed a 24.56 percent market value decline
in a five-year time frame. Its revenue growth, as well as its
EBITDA growth trend lines both slope positively, according to
In early December, Iridium announced it has completed its offer
to exchange its remaining outstanding $7 warrants for Iridium
common stock. The original offer enabled that Iridium would offer
warrant holders one share of common stock for every six tendered.
As the offer expired at the end of November, results revealed
93.1 percent of the $7-warrants had been tendered.
For Iridium's third quarter financial results, the company
reported a 48 percent net income increase year over year, mainly
driven from the life extension of the company's current satellite
constellation. In the report, its operational EBITDA sported a 6
percent growth, and its total revenue declined by 2 percent
compared to 2011.
Besides Tilson, other Gurus who have holding of Iridium include
Chuck Royce who owns 1.11 million shares, Jim Simons who owns
190,000 shares, Paul Tudor Jones who owns 129,800 shares and
Richard Snow who owns 21,070 shares. SAC Capital's Steven Cohen
sold out of the stock in the third quarter of 2012. (Guru Trades:
Iridium stock is up 0.15 percent at noon, trading at $6.87 per
share. It has a P/E (ttm) of 9.2, a P/B of 0.67 and a P/S of 1.2.
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