MoffettNathanson says EchoStar not for sale after ‘complicated’ release

MoffettNathanson says this morning’s press realize EchoStar is “bewilderingly complicated.” The firm believes the most important line is: “This asset allocation enables EchoStar to more optimally position the necessary resources for the execution of its strategic goal of becoming the premier provider of terrestrial mobile, satellite connectivity, and content services.” In other words, EchoStar is not putting the company, or its spectrum, up for sale, the analyst tells investors in a research note. However, judging from the stock’s initial reaction this morning, the market seems to have concluded otherwise, notes MoffettNathanson. It thinks EchoStar’s news of strategic alternatives are a precursor to a new financing transaction, or perhaps a securitization. “The assets simply aren’t being divided up in a way that would facilitate a sale,” writes the firm. The stock in midday trading is up 37% to $17.36.