$Echostar(ECHO.US) barely moved, just laying flat all day.
The value of satellite communications and spectrum assets has always been proven through transactions—without new spectrum sales or partnership announcements, the stock price can only grind in place. There was no news that day, and trading volume was also very light.
When it comes to pricing spectrum-like assets, should we look at book value or the consideration of the next transaction? My view is that we can only look at the latter—book value has almost no reference significance for such assets. The discount given by the market is essentially waiting for a buyer to appear. Until the next transaction announcement comes out, sideways movement may be the norm.
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