Ann: Response to ASX Price Query-SAS.AX, page-10

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• The Australian
• 12:00AM June 1, 2016
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• TIM BOREHAM
  
  Criterion columnist
  Melbourne
  
  

Sky & Space Global (SAS) 2.8c,Electro Optic Systems (EOS) $1.73
NewSat’s implosion hasn’t deterred investors from reaching for the skies with the latest satellite wannabe, with Sky & Space shares rocketing 40 per cent on debut yesterday.
CEO Meir Moalem says NewSat’s supernova impersonation was barely raised during the IPO roadshows, which raised $4.5 million via the shell of Burleson Resources.
Unlike NewSat, Sky & Space is employing nano-satellites which costs 80 per cent less than the typical $550m-$700m for a conventional orbiting object.
The company is funded to build and launch three pilot satellites, due to be propelled to the heavens in mid 2017.
Sky & Space’s ultimate target is an equatorial cluster of 200 satellites to service telco clients, targeting black spots in Africa, central America, parts of Asia and island nations.
“It’s much easier to build over the equator because of the physics of a satellite orbit,’’ Moalem says.
Moelem costs the full rollout — to be done progressively — at $120m to $130m.
“If we have 50 of them up there we will have a good chance of making money.”
Sky & Space’s debut comes after a dramatic spike in Electro Optic Systems shares, which prompted an ASX query.
As well as making military hardware such as hi-tech gun turrets, EOS has devised a way to track space debris.
This is in collaboration with Lockheed Martin of the US, which doesn’t suffer fools gladly.
In its reply to the bourse, EOS attributed the spike to “purely speculative” stuff on chat sites about space-tracking potential.
Not that this quelled the animal spirits because yesterday the stock climbed a further 9 per cent. At Monday’s AGM, management said the company would be profitable in the current half, with $6m of cash.