SDA - SpeedCast International

[greggles]

SDA has fallen more often than rose. Whats wrong with this company ?

The primary concern at the moment seems to be the auditor's remarks in yesterday's 1H 2019 results that there is uncertainty of SDA's ability to continue as a going concern.

This from the SMH today:

Shares in SpeedCast International are down a further 21 per cent today, now hitting 89¢. Sydney Morning Herald reporter Colin Kruger notes auditors PWC mentioned a material uncertainty over SpeedCast's ability to continue as a going concern in the half-year accounts, due to the $180.3 million loss, the $6.8 million cash outflows, and $654.6 million debt load.

"The Group's ability to continue as a going concern is dependent on the group having a continued appropriate level of funding from its existing lenders and creditors and/or other sources for at least the next 12 months from the date of this report," the auditors wrote.

Credit Suisse analysts have a 'neutral' rating on the stock with a $1.21 target price, down from $2.20. They note the company is too highly leveraged for many institutional investors to invest in and "recent forecast credibility is low".

They are expecting second-half earnings of $141 million, at the bottom of the company's own forecasts of between $140 million and $150 million. They do not expect SpeedCast to pay any dividends for the next two years, and have reduced their gross profit forecasts for 2019-20 down from $373 million to $357 million.

Meanwhile UBS's Eric Choi considers the satellite communications company a "high risk investment" that may deliver on debt repayment and earnings growth, or not

https://www.smh.com.au/business/markets/bellamys-drops-11pc-on-weak-results-20190828-h1hhzc.html

 

[bigdog]

In the first half of FY 2019 Speedcast posted a statutory loss after tax of $175.5 million. This was driven largely by a $154.8 million negative impact from the impairment of goodwill relating to the performance of its Non-Government operating segment. Its debt also increased to over $600 million, which is now almost triple its market capitalisation.

Very sad company where had a 12 high month of $5.13 and today low of $0.755

 

[bigdog]

A roughie and my top pick is SDA Speedcast for "Tipping Competition for Full CY 2020"

Speedcast was touted as an undiscovered growth stock last year. Analysts cited the company as a new age telco leading the way in satellite communication. The company’s acquisitions, contract wins, and cash flows supported a strong outlook.

The share price has plunged an incredible 40.8% in one day on the ASX to just $2.06 per share after the company updated its earnings guidance for 1H 2019 and FY 2019. The company cited several reasons for the downgrade, including; weak market conditions, expected revenue delays and lower expected earnings from its recent Globecomm acquisition.

The Speedcast share price opened the year at $2.90, had low of $0.68 and finished 2019 at $0.94 down $3.21 or 77% on the 12 month high $4.15 in April 2019.

The share price has been creeping up in the past two weeks from $0.70 to $0.94

Hopefully some good news will be presented in the August 2020 1H results!!

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[Sdajii]

SDA was my top pick for the competition too. I honestly didn't have all that much to say about it and I've just seen bigdog has already said more than I could. Basically I chose it because it has been smashed and I see the potential for a recovery. I probably wouldn't actually want to have my own money on it right now, it seems very risky, but I'm not risking an real money and am betting on the market having been scared into overselling, and it is now recovering, potentially with a long way to go. The chart above sums it up pretty nicely. If it does sort out its dramas, keep its head above water, and be in situation normal before the end of the year it seems possible for 100%+ gains.

 

[bigdog]

ASX announcement 3/02/2020 9:47:50 Trading Halt

Any guess's what the problem may be (accounts/auditors)???

Share price increases for early January was encouraging!

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[bigdog]

Two late ASX announcements yesterday

(uplaoded)

Still flogging "the world’s most trusted provider of remote communication" !!!!

The group’s share price is down 16.85% in 2020 alone and down 88.19% since late August 2018.

SDA is one of my tips included in 2020 year tipping comp!

 

[Dona Ferentes]

Looking for new CEO; new regime, write-downs, asset sales, the usual.

 

[bigdog]

One of my four tips in Year 2020 tipping and not looking good!!

ASX announcement today requesting Voluntary Suspension from Official Quotation in relation to financial results. Sounds like time needed to convince the auditors!

February 10!!

05/02/2020 9:04 AM Voluntary Suspension from Official Quotation

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[bigdog]

Announced today
10/02/2020 9:39:52 AM Extension of voluntary extension

perhaps audit issues!

tradinghaltsmelbourne@asx.com.au

Request for Extension of Suspension from Official Quotation (Speedcast International Limited)
Pursuant to ASX Listing Rule 17.2, Speedcast International Limited (Speedcast) requests an extension of the suspension from official quotation in its ordinary shares (ASX Code: SDA).

For the purpose of ASX Listing Rule 17.2, Speedcast provides the following information:
(a) On 5 February 2020, Speedcast requested the initial suspension pending an announcement by Speedcast in relation to its financial results for the year ended 31 December 2019.

(b) Speedcast requests that the suspension remain in place until the earlier of Speedcast making the announcement referred to in paragraph (a) and the commencement of trading on 27 February 2020.

(c) Speedcast expects that the suspension will be ended by it making a further announcement.

(d) Speedcast is not aware of any reason why the extension of the suspension should not be granted or of any other information necessary to inform the market about the suspension.

 

[bigdog]

Still having problems with their auditors!!

ASX announcement 27/02/2020 10:09:52 Request for Extension of Suspension from Official Quotation

Request for Extension of Suspension from Official Quotation (Speedcast International Limited)
Pursuant to ASX Listing Rule 17.2, Speedcast International Limited (Speedcast) requests an extension of the suspension from official quotation in its ordinary shares (ASX Code: SDA).

For the purpose of ASX Listing Rule 17.2, Speedcast provides the following information:

(a) On 5 February 2020, Speedcast requested the initial suspension pending an announcement by Speedcast in relation to its financial results for the year ended 31 December 2019, and on 10 February 2020, requested a further extension. Speedcast notes that the process of finalising its Preliminary Financial Report and Appendix 4E for the year ended 31 December 2019 (Results Update) will be delayed and the Results Update is expected to be released by, or before, 13 March 2020.

(b) Speedcast requests that the suspension remain in place until the earlier of Speedcast making the announcement referred to in paragraph (a) and the commencement of trading on 13 March 2020.

(c) Speedcast expects that the suspension will be ended by it making a further announcement.

(d) Speedcast is not aware of any reason why the extension of the suspension should not be granted or of any other information necessary to inform the market about the suspension.

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[bigdog]

Sdaji SDA was one of our 2020 year share tips!!

ASX announcement 23/04/2020 6:03:41 PM Speedcast to recapitalise through chapter 11 (uploaded below)

Speedcast files for Chapter 11 bankruptcy
by Caleb Henry — April 23, 2020
https://spacenews.com/speedcast-files-for-chapter-11-bankruptcy/

Speedcast said it hopes to complete restructuring by the end of August

MT LAUREL, New Jersey — Speedcast International, a network services provider leasing capacity on more than 80 satellites, filed for Chapter 11 bankruptcy protection April 23, citing weakness in the cruise and oil markets.

The Australian company, which ended 2019 with $669 million in debt, said customer struggles, amplified by the coronavirus’ impact on the cruise sector, made it “impossible” to raise much-needed equity.

Speedcast filed with the U.S. Bankruptcy Court for the Southern District of Texas in hopes of completing its restructuring by the end of August. The company said it has up to $1 billion in assets and liabilities.

Speedcast said it has obtained commitments for up to $90 million debtor-in-possession financing to support operations while it restructures.

“We expect to be a stronger business partner and employer as result of the additional financing our existing lenders have committed, based on their strong belief in our go-forward potential,” Speedcast CEO Peter Shaper said in an April 23 news release.

Speedcast’s bankruptcy leaves at least 12 satellite operators with unsecured claims. The largest, Intelsat, is owed $45.2 million, followed by Inmarsat with $24.8 million in unsecured claims, and SES with $7.7 million.

Iridium, AsiaSat, Eutelsat, Telesat, Sky Perfect JSAT, AT&T, Globalstar, APT Satellite, and the Russian Satellite Communications Company all have unsecured claims with Speedcast ranging from a few hundred thousand to a few million dollars.

Speedcast said all of its business units are continuing to operate without disruption despite the bankruptcy. None of the company’s government-focused subsidiaries — UltiSat, Globecomm and others — have filed for Chapter 11, Speedcast said.

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[System]

SDA Announcement Regarding ASX Delisting: 16 March 2021

Removal from Official List

Sydney, Australia, 16 March 2021 – Speedcast International Limited (ASX: SDA), today announced that it had submitted a delisting application with the ASX, and anticipates being removed from the official list for quotation on the ASX as of close of business on Tuesday,16 March2021.

Once it finalises certain administrative matters, including completion of its tax returns to date, the Company will convene an extraordinary general meeting of members to consider, and if thought fit approve, the appointment of a liquidator to the Company. Notice of that meeting will be mailed to all shareholders, in the coming weeks.

As there will be no material assets or liabilities remaining in the Company, the liquidators may be able to make a Loss Declaration in the current tax year, in which case capital losses may be able to be claimed by certain shareholders in their FY21 tax returns. This will depend on, among other things, the timing of the voluntary liquidation process, shareholders approving the liquidation at the general meeting (once that meeting is called), and the tax circumstances of each shareholder.

This announcement has been authorised for release by the Chair.