Q: views on this company going forward...thank you.
5i Research Answer:
On paper, TSATs fundamentals are showing a decline, with revenues and margins falling, but yet the stock price is rising. This is due to an internal shift in its business model. Its legacy business is its geostationary satellites (GEO) which provide services like broadcasting, enterprise telecom, etc. This segment is in a structural decline, but its new segment low-earth-orbit satellites (LEO) is seeing strong demand from governments, and its backlog is growing. So while its GEO segment is in a structural decline, the backlog growth for LEO is expected to offset the decline in GEO in the coming year(s). We think it is interesting and has potential being in the space exploration sector.