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Risk Warning
05/08/2011
Shares in satellite operator Inmarsat climb 1.2 percent to near the top of Britain's FTSE 100 leader board, bouncing back after Thursday's post-results 19.3-percent drop, with Prime Markets repeating its "buy" rating on the stock, saying the shares are "way oversold".
"This is an over reaction, driven by the current sovereign debt issues, but when the dust has settled, investors might care to re-read the CEO's comments -- in particular the line 'income from our Cooperation Agreement with LightSquared is driving record revenue and EBITDA growth and offsetting a slowdown in the growth of our Inmarsat Global MSS (mobile satellite services) revenues'," Prime Markets says in a note.
"With Inmarsat 5 fully funded, (we) believe the sell-off to levels less than half the May 2010 peak are way too severe, and with a rebound already this morning notwithstanding the current market carnage we see shares initially returning to 430 pence, followed by pre sell-off levels of 480-500 pence in the next four to six weeks."
Inmarsat outperforms a 2.3-percent drop on the FTSE 100 index on mounting concerns that the United States may be facing another recession and Europe's sovereign debt crisis is escalating.
Securities and Derivatives markets may be subject to rapid and unexpected price movements and past performance is not necessarily a guide to future performance. Trading in these markets is generally considered to be suitable only for the more experienced investor as it carries a high degree of risk. An investor may not receive back the amount of their original investment and in certain circumstances may be liable for a sum that is greater than their original investment. If in any doubt, please seek independent financial advice.