Why EchoStar Rocketed Higher in August

Shares of satellite broadband and wireless company (NASDAQ: SATS) rallied a whopping 89.6% in August, according to data from S&P Global Market Intelligence.

EchoStar abruptly went from a distressed, debt-ridden company to a debt-free entity when it agreed to sell some of its wireless spectrum to (NYSE: T) on Aug. 26. That transaction was enough to essentially wipe out EchoStar's net debt, while also leaving additional spectrum it could monetize -- which EchoStar proceeded to do in September.

EchoStar had come into August under a cloud of uncertainty. Its legacy satellite cable business is in decline, while EchoStar was attempting to build a competitive wireless business to challenge the big three telecom giants.

Source Fool.com