What Does SpeedCast Do?
SpeedCast [ASX:SDA] is a satellite service provider. It designs, implements and operates communication networks. It provides these especially to clients working in remote locations, on both land and sea.
According to the company it serves over 4,000 ‘terrestrial’ sites and approximately 2,500 offshore rigs and vessels globally. The company listed on the Australian Stock Exchange last year.
What’s Happening to the SpeedCast Share Price?
Here is a daily chart of the stock…
In March the company announced the acquisition of Hermes Datacommunications International. The company added, ‘With this acquisition, SpeedCast is well positioned to become a top 3 player in the energy services space and serve as a credible and reliable alternative to the existing incumbents.’
The market liked the news and the share price has continued to rise. Since the company listed at $1.96 it has run up to hit as high as $2.99. It’s currently trading slightly under this at $2.94.
What Now for SpeedCast?
The company believes it has strong growth potential, and time should present more merger and acquisitions opportunities. For now the stock market is agreeing and pricing in stronger earnings to come.
Editor, Markets and Money