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Hawk’s Nest

Dish Network (DISH) Call Buyer Hits the Jackpot as Shares Surge

by | Jun 3, 2021

Dish Network (DISH) was a very well-timed write-up on 3/30 with the September $40 calls referenced that bought for $2M currently worth $3.5M and continue to hold. DISH continues to see a lot of bullish positioning and we laid out the interesting story in our write-up:

Dish Network (DISH) seeing bullish activity the past week with 5000 September $40 calls opening for nearly $2M and 20,000 June $40 calls bought with 10,000 spread versus the $50 call strike. DISH still has size in January $35 and $40 calls as well with nearly 35,000 combined contracts. DISH shares have pulled back off March highs and sit just above VWAP off the February low, and above $36.50 can make another trend move higher, the bullish trend intact. The $18.7B company is trading 13.85X Earnings, 1.2X Sales and 9X EBITDA and while its legacy satellite TV business has struggled it is positioning itself in the 5G buildout as another wireless provider. DISH has been active acquiring Boost Mobile, Republic Wireless, and Ting Mobile while also being rumored to be eyeing Telephone Data Systems (TDS) or US Cellular (USM) for a move into rural coverage. DISH recently signed a master lease pact with American Tower to deploy its 5G network and has been signing a number of partnerships for this next move in its transformation. Analysts have an average target of $40 and short interest remains elevated at 12.8% of the float, rising 127% Q/Q. Deutsche Bank and Raymond James out in December with $65 and $58 targets respectively seeing significant value creation over time leveraging its substantial unencumbered spectrum portfolio.  The company noted in November they’re on track for 2022/2023 vision which sees them hitting 20% and 70% deployment of their network respectively. DISH also owns Sling TV, an intriguing asset, and speculation in the past of Dish merging with DirecTV which is now being spun-off by AT&T. Hedge Fund ownership jumped more than 12% in the latest quarterly filings, Jericho Capital with a large position.”