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To restore confidence in Sats, its board and management should buy the stock

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Ben Paul

Ben Paul

Published Wed, Nov 9, 2022 · 05:50 AM
    • Investors fear Sats will raise funds through a deeply discounted rights issue, and that the purchase of WFS will not boost its profitability as much as it implicitly claims
    • Investors fear Sats will raise funds through a deeply discounted rights issue, and that the purchase of WFS will not boost its profitability as much as it implicitly claims PHOTO: BT FILE

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    THE board and top management of Sats should announce they will each personally buy a meaningful amount of stock in the market after the company’s scheduled release of its half-year results later today (Nov 9).

    This is not a big ask. Shares in Sats have fallen dramatically since the company announced the acquisition of Worldwide Flight Services (WFS) on Sep 28. Even after the rebound over the past fortnight, the stock is still down more than 30 per cent.

    The company has said the acquisition would boost its pro forma FY2022 earnings per share by some 78 per cent.

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