I was a buyer of EOS shares the last trading days, and so I...

I was a buyer of EOS shares the last trading days, and so I increased my already size-able long term position (since early 2015). The reason is that I believe there could be a strong upward momentum towards the AGM at the 28th of may, and thereafter.

Remember, the reason why the stock is probably shorted, and short-investors are usually smart investors, is algorithms recognizing the negative cash-flow of the company and they see a high probability of extra shares being issued. As of the 20th of April, 5.49 procent shorted, or almost 8,3 million shares.

The presentation of the 2020 figures on the 26th of februari is among other things interesting in this regard. Time: 46:48

After a question why the share-price is falling, while according to EOS the fundamentals of the company are only getting better and better, our CEO and founder Ben Greene says there are two elements to this question:

1 “We expect to be a cash rich company in months”. This is because the UAE are paying the bills after the Covid delay and this should be crystallized in the quarterly updates.

2 “What is obviously a billion dollar valuation in Spacelink, is held at our books at zero value and so those two elements will drive a completely different appreciation of the share-price.”

EOS has not issued a clear outlook for 2021, but they have said they will issue a detailed outlook at the AGM. By then, the external financing of Spacelink should be completed, while EOS retains a controlling interest, and EOS is able to give a longer term projection of the contracts, profitability, customer commitment etc.

Ben also emphasized in the presentation that they have set up Spacelink on explicit request of existing customers. In addition, a listed SPAC should directly put a value on the stake of EOS’ in Spacelink.

In the meantime they hired top space industry execs for Spacelink to “drive forward the information superhighway for the space economy”.

Anyway, DYODD.