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Today we're going to look at a stock teaser from Michael Robinson with the headline Elon Musk's Big Bet.
Robinson wants you to pay to learn about the stock he believes is the company that could be behind Elon Musk's Starlink Breakthrough.
But I have good news.
He left enough clues in the presentation to figure out the stock, and I reveal it in the video below for free.
Additionally, I'll give you information on the stock so you can determine if it's worth investing in.
Let's get started!
Transcript Of Video
Before we reveal the stock, let's take a look at the presentation and the clues left behind by Robinson.
This pitch is about Starlink, and Robinson believes this satellite internet service from Elon will turn the telecom industry on its head.
If you're unfamiliar with Starlink, here's a description of what the company is and does:
Starlink is a project by SpaceX to provide high-speed, low-latency internet service across the globe using a constellation of thousands of satellites in low Earth orbit. Starlink aims to deliver broadband internet capable of supporting streaming, online gaming, video calls, and more, even in remote and rural locations. Starlink satellites use advanced technologies such as optical space lasers, ion propulsion systems, star trackers, and phased array antennas to communicate with each other and with user terminals on the ground.
Starlink offers different plans for residential, business, and mobile users, with varying speeds, costs, and availability.
However, Starlink and SpaceX are private companies, so you can't invest in them.
But there's one company Robinson believes will benefit from Starlink.
What Is Gilat?
The company that's going to benefit from Elon's Big Bet according to Michael Robinson is Gilat.
Gilat is a leading global provider of satellite-based broadband communications that develops and sells VSAT satellite ground stations and related equipment.
It also offers completely integrated solutions, which include satellite capacity, managed services, remote network operation, call center support, and field operations.
Gilat is headquartered in Israel and has been in the business for over 35 years. It is controlled by FIMI Opportunity Funds, an Israeli private equity fund.
Gilat's shares are traded on the NASDAQ Global Select Market and on the Tel Aviv Stock Exchange.
Pros Of Investing In Gilat
Some reasons you might want to invest in Gilat are:
- Gilat is a leader in satellite-based broadband communications that provides internet and telecommunication networks for remote areas, which could be a growing market in the future.
- Gilat has a partnership with Telesat to develop a low Earth orbit (LEO) satellite network that could provide speeds over 1.2 Gbps, making it competitive with fiber and 5G technologies.
- Gilat has recently won a multi-million dollar contract with two mobile operators in Mexico by AXESS Networks, which could boost its revenue and profitability.
- Gilat has paid three special dividends in 2020, totaling $1.20 per share, which could indicate its financial strength and shareholder friendliness
Cons Of Investing In Gilat
Some possible cons of investing in Gilat are:
- Gilat has a volatile and inconsistent dividend history, having paid only three special dividends in 2020 with no plans to continue them in the future. This could disappoint income investors who are looking for a stable and reliable payout.
- Gilat faces intense competition from other satellite internet providers, such as Viasat, HughesNet, and Starlink, which could offer faster, cheaper, or more reliable services to customers. Gilat may also lose market share to terrestrial broadband technologies, such as fiber and 5G, which could have an edge in urban areas.
- Gilat's revenue and earnings have been negatively impacted by the COVID-19 pandemic, which has reduced the demand for its services from the travel and hospitality sectors. The company reported a 28% year-over-year decline in revenue and a net loss of $18.4 million in the third quarter of 2020. It's unclear when the company will return to profitability or growth.
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