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Ligado Spectrum Push Good For Verizon, AT&T, But Bad For Dish?

Federal regulators appear to be warming up to a radio spectrum proposal from Ligado Networks, formerly LightSquared, which could provide AT&T ( T ), Verizon Communications ( VZ ) or T-Mobile US ( TMUS ) with a new strategic option — but could spell trouble for Dish Network ( DISH ) and its spectrum holdings. The Federal Communications Commission recently began its Broadcast Incentive Auction involving airwaves owned by local TV stations. The top bidders are expected to be AT&T, Verizon and T-Mobile. The complex auction is expected to drag on for months. Ligado’s re-emergence from Chapter 11 has been a wild card . Verizon, AT&T or T-Mobile might be less likely to buy Dish’s spectrum or partner with the satellite TV broadcaster if Ligado’s spectrum becomes commercially available. Dish has struggled to find a wireless partner to pursue mobile video services. Former Verizon CEO Ivan Seidenberg is chairman of Ligado, while former FCC Chairman Reed Hundt is a board member. Ligado, controlled by private equity firms, has a sizable 35 megahertz of midband spectrum. “Recent filings suggest the FCC may soon open inquiry on Ligado’s new spectrum proposal,” said Paul Gallant, an analyst at Guggenheim Partners, in a research report. “We believe Ligado’s restructured spectrum plan stands a reasonable chance of winning FCC approval. “If Ligado’s path to market becomes clear, it (would be) a long-term positive for Verizon, AT&T and T-Mobile, and a potential concern for Dish’s spectrum valuation (if Dish has not already monetized its spectrum).” After emerging from bankruptcy, Ligado has reached agreements with tractor maker Deere ( DE ) and GPS device maker Garmin ( GRMN ), resolving issues over potential global positioning system interference.

Fitbit Device Demand Solid; GoPro Weak; Garmin Mixed

Retail checks by Morgan Stanley showed good news for Fitbit ( FIT ), bad news for GoPro ( GPRO ) and mixed news for Garmin ( GRMN ). Fitbit’s new Blaze smart fitness watch and Alta fitness wristband appear to be selling well and could drive upside to Fitbit’s Q1 earnings and Q2 guidance, Morgan Stanley analyst Katy Huberty said in a research report Monday. “Our checks indicate demand for Blaze and Alta were ahead of expectations, and retailers are already putting in reorders for the Blaze, which shipped earlier than the Alta,” Huberty said. Fitbit reported March 31 that it had shipped more than 1 million units each of the Blaze and Alta within their first month of availability. “We expect management will remain conservative on guidance but still expect Q2 estimates to move higher post-earnings,” she said. Meanwhile, retail checks for GoPro action cameras point to year-over-year declines in sell-through, with retailers still working down channel inventory. “Our conversations suggest enthusiasm for the product category continues to wane, and the upcoming Hero 5 is unlikely to recapture retailer shelf space lost during the recent spring reset,” Huberty said. She is cautious on GoPro’s upcoming quadcopter “flying camera” product, though the market appears to be picking up. Competitors are expected to launch lower-priced drones, hurting sales of GoPro’s premium product. Fitbit rival Garmin is retaining market share in high-end sports watches, but it appears to be losing share in activity trackers, Huberty said. In afternoon trading on the stock market today , Fitbit stock was up 5.5%, above 15, while GoPro was down 3%, near 12, and Garmin stock was up 1.5%, above 40.

Fitbit’s Latest Fitness Trackers Off To Strong Start

Wearable fitness device maker Fitbit ( FIT ) announced Thursday that it shipped more than 1 million units each of its latest products — the Fitbit Blaze smart fitness watch and Fitbit Alta fitness wristband — in their first month of availability. Fitbit stock has been depressed this year in part because investors were disappointed in the company’s products announced since the CES in January. Fitbit went public last June 18 at 20 and climbed as high as 51.90 on Aug. 5. Fitbit stock was up over 6% to above 14 in midday trading on the stock market today . Fitbit’s message on Thursday was that both new products are off to a strong start. The San Francisco-based company said its Blaze sales have exceeded the company’s internal forecasts. Some industry analysts were worried the fitness-centric watch would compare poorly to Apple ‘s ( AAPL ) more capable, yet pricier, Apple Watch. Since its launch, Fitbit Blaze has been the No. 1 best-selling device in the smartwatch and heart-monitor categories on Amazon.com ( AMZN ). Fitbit Alta also is currently one of the top-selling devices in the fitness tracker and pedometer categories on Amazon. “At Fitbit, we continue to focus on developing innovative and motivating fitness-first products that our customers love and that help them achieve their health and fitness goals,” Woody Scal, chief business officer at Fitbit, said in a statement . “The positive response we’ve received to Blaze and Alta demonstrates our continued ability to innovate and drive strong demand for Fitbit products, which is what has made and kept us the leader in the global wearables category.” The Fitbit Blaze costs $199.95. Last week, Apple cut the starting price for its Apple Watch to $299 from $349. The Fitbit Alta costs $129.95. It competes with fitness trackers from Garmin ( GRMN ), Jawbone, Microsoft ( MSFT ) and others.