Nitin Sacheti presented his in-depth investment thesis on EchoStar (Nasdaq: SATS) at Best Ideas 2017.
EchoStar is run by a great owner/manager. Charlie Ergen has aggregated many disparate assets that have significant long-term monetizable value. This includes the best intellectual property for high-throughput satellites used mainly for rural broadband. Nitin estimates the value of these assets, along with the rest of the core business, at $70 per share, based on 10x 2017 FCF. The company also has “hidden” operating assets in Mexico/Brazil, worth an estimated $30 per share within two years. EchoStar also owns a large mobile spectrum asset in Europe, worth another estimated $30 per share within three years. As a result, the business should be worth $130 per share within three years, compared to a recent market quotation of ~$50 per share.
About the instructor:
Nitin Sacheti is the Founder and Portfolio Manager of Papyrus, where he continues to implement a successful bottoms-up investment process, honed over 10 years, focusing on free cash flow generation over time. Prior to founding Papyrus, Mr. Sacheti was a Senior Analyst/Principal with Equity Contribution at Charter Bridge Capital where he managed the firm’s investments in the technology, media and telecom sectors as well as select consumer investments. At Charter Bridge and in his prior role at Cobalt Capital, he managed over 25 names in a ‘mini-PM’ capacity with significant autonomy ensuring a seamless transition to Portfolio Manager at Papyrus. Previously, Mr. Sacheti was a Senior Analyst at Tiger Europe Management, managing mostly the fund’s non-European investments. Mr. Sacheti began his investment career in 2006 at Ampere Capital Management, a consumer, media, telecom and technology focused investment firm, initially as a Junior Analyst, later becoming Assistant Portfolio Manager. He graduated from the University of Chicago with a BA in Economics and was a visiting undergraduate student in Economics at Harvard University.
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