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Dish Network ( DISH ) stock rose Friday after the company responded to reports that hedge fund Kerrisdale Capital Management has taken a short position in the satellite TV broadcaster and views its spectrum assets as overvalued. Bloomberg had reported Thursday that Kerrisdale had raised $100 million in a new fund aimed at shorting a large company that it didn’t identify, but that Bloomberg said was Dish. Dish Network, meanwhile, in an emailed statement to IBD Friday, said: “We understand Kerrisdale is shopping a negative report on DISH and has shorted our stock in an attempt to make a short-term gain while DISH is in an FCC-mandated quiet period. We will continue to manage the business for the long-term benefit of our shareholders as we have done over the last 35 years.” Dish Network has amassed some 77 MHz of radio spectrum, spending some $15 billion in the process, according to Citigroup. Dish, however, lacks a wireless partner to deliver mobile video services. Verizon Communications ( VZ ) has stated it’s not interested in acquiring Dish Network’s spectrum but might be open to a wholesale network deal , analysts say. Dish — along with AT&T ( T ), Verizon and T-Mobile US ( TMUS ) — have filed as bidders in a federal auction of airwaves now owned by local TV broadcasters. The auction, begun in late March, might drag on until Q4. Depending on the auction’s outcome, wireless firms may be more or less interested in partnering with Dish Network or buying its spectrum. According to Bloomberg, Kerrisdale said on Twitter that it is betting against a more-than-$10-billion company that it thinks is worth 60% to 80% less than its current price. Kerrisdale also reportedly tweeted “we’re still weeks — perhaps many weeks — away from actual publication.” Growth has slowed in Dish Network’s core pay-TV business. Dish last year launched its Sling Web-TV service, which has been gaining subscribers. Dish Network stock was up 5% in early trading in the stock market today , above 46. As of Thursday’s close, Dish Network’s stock was down 23% in 2016 and has slumped 33% in the past 12 months. Dish stock has a poor IBD Composite Rating of 23 out of a possible 99, meanings it’s performed among the bottom 23% of all companies on key metrics such as earnings and sales growth. Scalper1 News
Scalper1 News