Inmarsat In Orbit Again

Given the way that Inmarsat has not exactly been hitting the stratosphere in terms of its fundamental or share price performance in recent months and years, one would have thought that the company would have welcomed the $3.2bn move from Echostar last July with open arms.


Cynics might suggest that the management of the UK group were perhaps not quite as aligned with the interests of their shareholders as they could be. We may see if anything has changed in the near term, especially given the stock price malaise that witnessed a low of 355p earlier this month. Interestingly enough, we often see a bear trap – to flush out the weak hands, a few weeks before a M&A move and this could be another example of the genre. And the rumour mill has been swirling around the stock for some days before the latest story from Reuters and others.


Thursday’s price action saw the stock fill the December chart gap at 412p and then fall. The next time the shares clear this level could and should be the prelude to a more sustained rally, either off the back of a new Echostar move, or simply that the stock’s 40% decline from the 2018 peak is overdone. Ideally, there will not now be a break back below 370p – this week’s support zone.

Disclaimer is a purely journalistic, not for profit website – Zak Mir is a member of the National Union of Journalists. There is no intention here of providing financial advice. It is recommended you seek an independent professional opinion before deciding whether or not to take any action with regard to anything written here.

Author: Zak Mir

Financial commentator, interviewer, technical analyst

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