EchoStar: A SpaceX Proxy, Despite Ergen's Efforts To Forge His Own Path

Max Greve 4.08K Followers Follow Summary EchoStar Corporation now functions almost entirely as a proxy for SpaceX, with its operating divisions in decline or bankruptcy. ECHO trades at a discount to its implied SpaceX share value, but operational and legal risks cloud the investment case. Every major division—satellite broadband, pay-TV, and mobile—is in or facing bankruptcy, with legal liabilities from tower lawsuits unresolved. I rate ECHO a Hold: operational deterioration, bankruptcy uncertainty, and maverick management outweigh the apparent SpaceX discount. jetcityimage/iStock Editorial via Getty Images We may very well be drawing to the end of the EchoStar Corporation ( ECHO ) saga, or perhaps the company is simply preparing to undergo yet another fundamental transformation. Nimbleness is an attribute to be admired This article was written by Max Greve 4.08K Followers Follow Max Greve is a graduate of Northwestern University with a quadruple major in History, Economics, Political Science, and International Studies. Max is a full-time writer and in addition to stock market trends also writes articles on government, current events, macroeconomic trends, and last but not least, the ongoing inefficiencies of professional sports. Analyst’s Disclosure: I/we have a beneficial long position in the shares of VZ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.