Q: The CEO of Telesat was interviewed on CBC radio this morning, and he discussed the Lightspeed project in detail. Previously to him, a consultant in the rural Kawartha Lakes area of Ontario described his move away from Starlink.His aversion to Elon Musk propelled him to cancel Starlink even though his replacement through Rogers isn't as good as Starlink was. I suspect this consultant isn't the only one who is disgusted with Musk, (The Ontario government's response is an excellent example.)
Now for my question: Given the toxic nature of Musk, and the need for a truly Canadian option to Starlink, would now be a good time to start to accumulate shares in TSAT? In our case, this would increase our exposure in the Telecom sector, and get in on the ground floor of what sounds like an exciting project.
Thanks as always for your insight.
Now for my question: Given the toxic nature of Musk, and the need for a truly Canadian option to Starlink, would now be a good time to start to accumulate shares in TSAT? In our case, this would increase our exposure in the Telecom sector, and get in on the ground floor of what sounds like an exciting project.
Thanks as always for your insight.
5i Research Answer:
Sentiment can change quickly, and we would be cautious on investing based on it. But there have been fundamental improvements and its recent partnership with Orange looks very good. Stock momentum is very positive and cash flow should grow nicely. We would be OK accumulating this on fundamentals and growth potentials. If it gets a sentiment boost we would take that as an optional bonus.