Virgin Galactic: Far Too Risky To Buy Now

About: Virgin Galactic Holdings, Inc. (SPCE)
by: John Engle
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John Engle
Value, special situations, Deep Value, Growth

Virgin Galactic went public on October 28, becoming the first publicly traded space tourism company.

The company's stock has slid since its public debut amid skepticism about its business model, costs, and safety.

Morgan Stanley analyst Adam Jonas recently released a Buy rating. Near term, he predicts strong demand for space tourism; long term, he foresees opportunity to expand into hypersonic passenger planes.

Virgin Galactic could do great things, but it remains exceptionally risky both physically and financially. We are steering clear until the company's future becomes clearer.

After more than 15 years of development, Virgin Galactic (SPCE) is at last on the cusp of launching its first batch of well-heeled clients into space. The space tourism company, founded in 2004