No doubt Speedcast will be in the “sin bin” for the next six to...

No doubt Speedcast will be in the “sin bin” for the next six to 12 months. What we need to consider is what drove the earnings disappointment and is it temporary or permanent? The market seems to have taken the view it’s permanent, dropping the P/E to 12.5 times calendar year 2018 earnings and 9.8 times financial year 2019 earnings, or PEG ratios of just 0.5 times and 0.3 times earnings. I suspect that means the market feels another downgrade to expectations will follow in a few months.