Yet Another Value Podcast Yummy Century Egg's Guowei Zhang on Echostar $SATS
Jun 24, 2025
Guowei Zhang, a writer for 'Yummy Century Stocks' specializing in distressed investments, joins the conversation about EchoStar's complicated financial landscape. They delve into the company's struggling satellite and pay TV segments, revealing the hidden value in its wireless spectrum assets. The discussion highlights FCC regulatory challenges, the potential for bankruptcy, and speculative links to a possible Trump Mobile tie-in. With stark valuation predictions and varying investor positions, Zhang uncovers the fascinating, tumultuous nature of EchoStar's market drama.
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EchoStar's Business Structure
- EchoStar as a holding company has three main businesses: Hughes satellite broadband, pay TV, and wireless business.
- Only the wireless business holds potential equity value due to its spectrum portfolio despite current financial losses.
Wireless Network Reality Check
- Dish's wireless network is cloud-native and cheaper to build but remains unproven with technical issues.
- Consumer adoption is lacking, making the network value highly dependent on spectrum assets.
Spectrum Portfolio Valued High
- EchoStar's spectrum portfolio is valued roughly at $60 billion, implying substantial trapped equity value.
- Even with roughly $13 billion in debt, this indicates significant value upside potential for shareholders.