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Owning the Sky - Gurus Hold Two Satellite Stocks, MDA, LORL

October 27, 2013 | About:
Sally Jones

Sally Jones

49 followers
It’s hard to imagine but there is high-altitude traffic. Over 30 satellite companies with around 1,000 communication satellites are competing for quadrants of the sky. Canada’s MacDonald, Dettwiler and Associated Ltd. (MDA) acquired the satellite manufacturing subsidiary of Loral Space & Communications Inc. (LORL) for around $875 million in late 2012. The acquisition merged two global communications leaders for a new focus on capturing business from the U.S. government and the commercial market for satellite communications.

Incorporated in 1969, MacDonald, Dettwiler and Associates Ltd. (MDA) is a communications company that provides surveillance, intelligence and geospatial services to commercial and government organizations. MDA’s systems and services integrate information from space-based, airborne, maritime, and ground-based sources into information for government, commercial, and business customers such as space and remote sensing, land surveillance and intelligence, aviation, maritime defense, and security and energy.

MacDonald, Dettwiler and Associated Ltd. (MDA)

Up 43% over 12 months, MDA has a market cap of $2.88 billion; its shares were traded at around $79.28 with a P/E ratio of 30.20 and a P/B ratio of 4.78. The dividend yield is 1.63%.

Guru Action: As of June 30, 2013, Mawer Canadian Equity Fund (MDA.Canada) is the top stakeholder with 155,925 shares or 0.43% of shares outstanding. The fund made a new buy in the second quarter of 2013, buying 155,925 shares at an average price of $69.31 for a gain of 14.4%.

Check out the two guru stakeholders and very active insider selling.

Track historical share price, revenue and net income:

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As of June 30, 2013, six guru billionaires hold Loral Space & Communications Inc. (LORL) and there is one insider trading so far in 2013.



Loral Space & Communications Inc. (LORL)

Down 12% over 12 months, Loral Space & Communications Inc. has a market cap of $2.13 billion; its shares were traded at around $68.85 with a P/E ratio of 5.40 and a P/B ratio of 12.95. The company does not pay a dividend.

After the MDA acquisition of its Space Systems/Loral subsidiary, Loral Space & Communications Inc. still has interests in satellite-based communications services, owning 56% of XTAR LLC (XTAR) and 64% of Telesat Holdings Inc., trading under LORL. Headquartered in Ottawa, Canada, with facilities around the world, Telesat is a global satellite operator, providing reliable and secure satellite-delivered communications worldwide to broadcast, telecom, corporate and government customers.

Guru Action: As of June 30, 2013, Leon Cooperman is the top stakeholder; he increased his position by 25.02%, buying 151,066 shares at an average price of $61.32 for a gain of 12.3%.

Over seven quarters of mixed results, Leon Cooperman has averaged a gain of 14% on 780,466 shares bought at an average price of $60.58 per share. Selling, Cooperman had a loss of 5% on 25,700 shares sold at an average price of $72.13 per share. His current shares of 754,766 are valued at $45.27 million.

George Soros follows close behind Cooperman with 705,258 shares as of June 30, 2013. Soros holds 2.28% of shares outstanding, representing 0.46% of his total assets managed.

Through 12 quarters of mixed results, Soros has averaged a gain of 11% on 706,458 shares bought at an average price of $62.15 per share. On shares sold, he averaged a gain of 5% on 1,200 shares sold at an average price of $65.66 13 per share.

The only guru to chop LORL in the second quarter of 2013 was Jim Simons who made enormous gains in 2008, peaking at 513.6% in the fourth quarter of 2008 when he sold 8,800 shares at an average price of $11.22. In second quarter, Simons reduced his position by 60.28%. selling 51,448 shares at an average price of $61.32 for a gain of 12.3%. His five-year history shows a 0% loss buying 92,000 shares at an average price of $68.91 per share, but selling 58,100 shares at an average price of $62.40, he gained 10%.

Jim Simons holds 33,900 current shares or 0.11% of shares outstanding.

Track historical pricing, revenue and net income:

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About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 4.0/5 (3 votes)

Comments

AlbertaSunwapta
AlbertaSunwapta - 1 year ago
Not sure about today but when I owned MDA it had some interesting real estate tracking technologies aimed at the UK market and the US insurance market plus medical robotic technology related to IMRIS and the UofC brain research. All of which might have great value going forward. (Lottery tickets.)

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