RE--what is Iridium worth? Mark, your summary of potential problems for Iridium is clear and to the point.
Perhaps your doubts about the economic value of the company justifies the recent drop in the price of the stock, or you could say the 52 -week high was never justified in the first place. Whatever.
My view is that, if anyone wants to invest in the company, the stock price, at 24 versus a 52-week high of 72, makes the entry point more attractive.
I'm not saying anyone should jump in with both feet, and there might be better buying points/times in the future.
I can't really speak for "value of the enterprise" or "value of the stock".
Actually, I think there is only a faint correlation between value and stock price anyway, which is one reason company insiders use options instead of stock.
I can't say the company or the stock will do well (and I don't place a whole lot of reliance on the words of most analysts, anyway).
But the bet (of buying this stock versus some other stock, or holding cash) seems more favorable considering that the stock price has dropped so much. Is the Motorola backing a plus? At least the backing shows this isn't some flaky "internut" company that's here today, gone tomorrow. There has been real money invested in this company. Whether that investment will turn out to be smart or stupid is something you, and I, will only learn in hindsight.
In theory, Wall Street is valuing IRIDF on future subscriber growth. There's also the heavy debt load of the company. But I don't believe there is any practical way for an individual investor to value the stock price based on subscriber growth. And I can't see how debt load makes any practical difference, when you look at cable companies, utility stocks, banks or brokerages, whatever.
Regards,
Larry
PS--Obviously, if you have serious doubts about the economic "value" of the company, you are better off putting your money into something else that you do you believe in.
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