Subsea Cables & Internet Infrastructure

SpaceX is the most over-valued stock in the Solar System with a stock valuation 100x current sales The smart money that invested in SpaceX as a private company knows it is wildly over-valued and will sell their stock when the IPO lockup periods expire this autumn. The float, the amount of shares registered for public trading, will increase 20% to 30%. That is a huge increase in supply. Moreover, the bond market, the best measure of risk, is pricing SpaceX bonds as junk. Unlike equity, bond investors are level headed and don't give a damn about technology hype. Only financials matter in the end. For a recent forecast of the impending implosion: https://finance.biggo.com/news/0e4c9f77-64fb-4bba-8193-43f26b36b74f. 

Retelit and its minority partner the Italian government just made a $700 million Euro bid for Sparkle's subsea cable business. The bid expires January 27th, 2025. More details here . My first impression is that this is not a rousing endorsement of the subsea cable service industry. Sparkle does a billion Euros in annual revenue according to a publicly available corporate presentation with wet assets including initially full ownership of the Mediterranean Blue cable and some ownership on Blue-Raman, Equiano, Seabras1, and Curie. However, voice comprises a significant portion of its revenue which most investors will penalize in their valuation estimates. In general, the financial markets view voice as less valuable than data traffic because it is considered a low growth, low margin business. Data is sexy. Voice is not.  I have always viewed Sparkle as a stodgy company with a 20th century management style with too well dressed senior managers. Rigid old hierarchical corporate structur...