I am curious whether the earnings downgrade is coming from cost or revenue. Being hopeful:
Maybe the change to the contract terms means revenue recognition changes. This may delay revenue to closer when cash is received, which would mean AFR and the shorters can stop whinging about EOS's accounting method, but also that there is a short delay in revenue timing.
On the cost side, a bring forward of Spacelink costs impacting profit, with revenue static, then that, IMO would be good news, everything happening sooner.
Whatever it is, could be a situation of sell the rumour, buy the news. If it is a downgrade and cash delay the shorts may take the opportunity to close out for a nice profit and provide some buffer.
I do think it is more likely that revenue will be downgraded due to 'timing', cash will have been delayed from Q3 to Q4, impacting the quartely, which will be cash flow negative. And Spacelink will be, as they have said, a 'status update' with nothing concrete. Not to be negative, however I see this as the most likely as it is just normal business stuff, revenue and cash slip quarters all the time, it is just worse for EOS which currently has a image issue. Silver lining, for me at least, all this inconvenience will be overreacted to creating a great buying opportunity. I don't have alot of room to top up, but I have some...
All IMO, literally just guessing here, please DYOR and GLTAH.
EOS Price at posting:
$3.61 Sentiment: None Disclosure: Held
(20min delay)