RNET

RigNet Inc.

TMT


Presented:10/29/2013
Price:$38.09
Cap:$0.61B
Current Price:$9.60
Cap:$0.19B

Presented

Date10/29/2013
Price$38.09
Market Cap$0.61B
Ent Value$0.62B
P/E Ratio34.39x
Book Value$8.05
Div YieldN/A
Shares O/S16.01M
Ave Daily Vol90,000
Short Int1.28%

Current

Price$9.60
Market Cap$0.19B
RigNet, Inc. provides network infrastructure services for the remote communications needs of the oil and gas industry. It offers remote communications services through a controlled and managed Internet protocol/multiprotocol label switching (IP/MPLS) global network, enabling drilling contractors, oil companies, and oilfield service companies to communicate. The company offers a communications package of voice, data, video, networking, and real-time data management to offshore and land-based remote locations. It primarily provides voice-over-Internet-protocol, data, and high-speed Internet access, as well as other value-added services, such as video conferencing solutions, TurboNet wide area network acceleration solutions, real-time data management solutions, Wi-Fi hotspots and Internet kiosks, wireless intercoms, and handheld radios. The company also offers Secure Oil Information Link, a managed members-only communications network hub that enables collaborative partners, suppliers, and customers to transfer and share data. It serves the owners and operators of offshore drilling rigs and production facilities, land rigs, remote offices, and supply bases in approximately 30 countries, including the United States, Brazil, Norway, the United Kingdom, Nigeria, Qatar, Saudi Arabia, Singapore, and Australia. The company was founded in 2000 and is headquartered in Houston, Texas.

Highlights

The market for communication services in the E&P industry has consolidated, and the presenter believes RigNet (RNET) is very well positioned long-term. He is long shares and believes the market is materially underestimating the EBITDA contribution Inmarsat may bring to RNET following its consolidation.

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Idea Discussion

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