ViaSat: Satellite Speculation


Stephen Leeb Image Stephen Leeb Founder and Research Chairman, Leeb Group

This is the second time we have recommended ViaSat (VSAT); we had the stock in our portfolio from September 2012 to February 2015 and enjoyed a 59.6 percent gain, recalls growth stock expert Stephen Leeb, editor of Brain Trust Profits.

Get Top Pros' Top Picks, MoneyShow’s free investing newsletter »

Since we sold the stock, it hasn’t done very much in two-and-a-half years due to high capital expenditures keeping earnings growth subdued for now, but we think that will change.

ViaSat has two high-capacity satellite systems in space and is the leading provider of satellite telecom services. It serves residential, commercial, and government customers.

Its services range from residential broadband internet to in-flight Wi-Fi to classified work with the Department of Defense operates cyber security and national defense applications.

The company is working on a third, next-generation satellite system that it plans to launch in 2019. This third system will comprise of three geostationary satellites and have more capacity than the rest of the world combined and be capable of providing coverage to most of the globe.

Each of the three satellites will have bandwidth of more than 1 terabit per second (many times even the fastest Internet connections). In particular, ViaSat targets the fast-growing Asia-Pacific region with this upcoming launch.

ViaSat is the quintessential speculation.