Turmoil in the telecom sector presents an opportunity for investors. Recently, Speedcast (SDA $3.89) was sold off after disappointing investors with its profit numbers. 

Speedcast is a company that provides global satellite communication services. Companies that operate in remote locations still need data and the internet. 

Its customers range from cruise ships, defence locations, emerging markets or an oil rig. This company has four divisions: maritime, government, enterprise & emerging markets and energy. 

Three out of four divisions are growing well but energy has been a disappointment. 

Energy is cyclical and investments into new projects are starting to flow in. This should help uplift profit in FY2019 & FY2020. 

The risk is that this occurs later and its rather large debt burden becomes a problem. 

This is a company with good cash flows but a stretched balance sheet. Despite the wild ride in the share price, an improvement in revenues from greater investment coming from energy companies should provide upside to the current market valuation and alleviate the concern around debt levels.

Source: Finance.Yahoo.com