Cove Street Capital on Viasat $VSAT
Eugene Robin and Ben Claremon from Cove Street Capital discuss the battleground stock Viasat (VSAT). They discuss the biggest misperception among bears, why they think VSAT's government business is a hidden gem, and how the risk from Elon Musk's SpaceX (and other burgeoning competitors) is overblown.Some relevant links:Cove Street's March 2020 Viasat deck: http://covestreetcapital.com/eugene-robin-discusses-viasat-on-the-valuewalk-podcast/Kerrisdale's short report: https://www.kerrisdalecap.com/investments/viasat-inc-vsat/Cove Street's Kerrisdale rebuttal: http://covestreetcapital.com/wp-content/uploads/2017/06/Satellite-Potshots-ViaSat.pdf Chapters0:00 Intro2:50 Viasat overview8:15 Residential Broadband: the biggest VSAT misperception15:45 Is Cove Street too close to VSAT?25:00 Could a big increase in capacity create issues?31:00 VSAT's all-in cost advantage and the SpaceX risk36:45 VSAT's hidden jewel: the Government business43:50 "Stock price bro" and capital allocation bear case52:50 Why GEO can compete with LEO1:06:00 Ben's quick run through of lingering points1:17:00 Quantifying a reasonable bull case