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Yes i know competing with elson’s starlink is no easy task. Although once public im sure starlink will be a real winner it is important to realize that its a large market and there are also many limiting factors to spacex/ starlink without getting into to it i would like to introduce and interesting opportunity

Lorl- loral space and communication .on nyse currently trading at 20$ and some change

The meat and potatoes:

Loral currently owns 64% of canadian satellite producer telesat the remainder is owned by canadas public pension. It is the fourth largest in the world and has been around for 50 years. It has been excellently run by dan goldberg maintaining strong cashflows and important contracts. Telesat is currently in the process to create/ have in orbit a leo conetellation for 2022 which is said to cover the globe. So far the tech has been proven strong.

Telesat will be selling some of its u.s spectrum in december in the public auction and will receive 375$ mil usd which is 1/3 or lorals current market cap. It is also in the process to possibly sell spectum in canada at auction but so far no word on that yet. Its annual revenue has been fairly consistent in the $800-1 bil mark which alone makes loral a value play with a market cap just over 600 mil.

My thesis:

telesat will be going a different route offering backflow internet to customers with leo( going through existing isp)now some people have voiced criticism at this when comparing to spaceexs direct to consumer. The reality of our world is that many nations will not allow direct to consumer due to censorship as well as the heavily engrained relationships between current providers and government. Which will make backflow the way to go. Telesat is also working with lockheed martin and the pentagon but not much info on that.

Telesat just announced a partnership with nelco india which is huge as india has the second largest internet market in the world and nelco has stong government ties. Telesat also just announced further contract with darpa which could prove to be huge in the comimg years. Telesat also has a large existing revenue base from its ongoing operations.

The risk: Mhr fund is the largest and most influential shareholder of loral. Mhr/ public pension failed to reach a deal to sell telesat for 7bil or 75$/ share in 2015 due to some squabbling. In april of this year loral announced it is in advanced discussions with publc pension to take telesat public but no announcement has been made yet.

Telesat has already made major partnerships for its leo system so if it fails to secure funding it could be brutal. I for one dont believe these partnerships would have been announced recently if it wasnt a given that funding/ ipo will be announced soon.

Telesat has the lobbying/ history and tech expertise to be a leader in the space race. Their partnerships in india north america and throughout the world will create a strong customer demand for their constellation. I believe we are on the cusp of some big announcements which will drive share price not to mention the value play already discussed. Hopefully mhr and public pension can work together to launch telesat in the the next huge phase of its companies history.

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