Category Archives: $VSAT

@LookatBowen: $GOGO – view after the pull back..

JPM upgraded the stock to $28 (link below).

2CentView FV=$23 if you value the stock 2 years forward – $GOGO is not expected to make money till 2016-2018 when earnings are expected to grow in the 30% area – with stock trading on an 5Y implied growth in the low 20’s it is a good buy if you believe in the growth potential of on Air High Speed internet access on airplanes.

Revenues are expected to surpass $1bn in 2018.
There are about 50,000 commercial flights taking off worldwide every day, with around 3million passengers if Airlines are charged $5 per passenger x 365 = $5.5bn revenue potential in this market.

I read that $GOGO technology – which is on the ground technology – as opposed to in the air like $VSAT – is not that great, but recently I saw the CEO CNBC come on and say their technology is as good as $VSAT and is improving all the time. However, i dont think you can stream video on an airplane which has $GOGO technology – yet.
However, they are first to market and have signed up major airlines.


If you like $GOGO – buy here at $18, take some profit at $26, stop $14.

$GOGO vs $VSAT – inflight technology expected to grow from 350mm to 5bn ..

$GOGO announced results this week and beat on earnings and eps – but stock went lower from the recent pop from $21 (where i first tweeted this name on feb 28) to $24 then back to $21.85.$GOGO was first to market and have signed up airlines such as United, American and Delta adn recently JAL – but it’s technology only currently supports a dozen users and watching your favourite movie on Netflix while drinking champagne 30,000 feet in the air is still a dream.

However, the stock trades on a 20% 5y Implied growth in an industry which is predicted to grow 70%p.a over next 5 years.

$VSAT – the other company in this space, has more advanced technology but trades on 65% implied growth over 5 years (px=72) – in line with the expected growth of this technology.

So, bottom line $GOGO is cheap – but for a reason – it’s technology LAGS well behind $VSAT. If you think they can close the gap buy $GOGO.

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