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Want SpaceX Stock? Momentus May Be The Closest Thing

Dec. 08, 2020 7:18 AM ETMomentus Inc. (MNTS), SRACU, MNTSWSPCE85 Comments
Michael Dolen profile picture
Michael Dolen


  • Momentus builds a space transfer vehicle which offers "ride sharing" for satellites, to take them to their precise orbits.
  • It is expected to soon be a public company via a SPAC; Stable Road Acquisition Corp.
  • If completed, it will be the first publicly traded pure-play space company.
  • Although extremely speculative, the excitement this is likely to evoke among investors should not be ignored.

Investment Thesis

Momentus (NASDAQ:MNTS) is a pure-play space infrastructure company that is expected to go public via a SPAC, Stable Road Acquisition (SRAC, NASDAQ:SRACU, SRACW), and it will trade under the ticker MNTS. Despite an already rich valuation near $2 billion at the deemed value of $10 per share, it will have a significantly lower market cap than Virgin Galactic (SPCE) at $7 billion. Given the frothy nature of SPACs and the fact that Momentus will be an exciting one-of-a-kind public space company, I expect there to be near to intermediate term upside. However, the longer term outlook is a complete gamble.

Why Momentus is a unique company

What do you want to be when you grow up? At one time or another, odds are you dreamed of being a spaceman or woman. Space is the ultimate fantasy and final frontier. That includes for investing. There’s major thirst for this sector, which is yet to be created. For space pure plays, there’s almost nothing in the public markets. Even in the private secondary market, it’s nearly impossible to get shares in the granddaddy of them all; SpaceX.

While you can’t buy SpaceX, you soon may be able to buy one of their customers; Momentus. They call themselves "the space infrastructure company" and one could argue they will be the first pure play space company in the public markets.

Yes, you currently can buy Maxar Technologies (MAXR), Orbcomm (ORBC), SES (OTCPK:SGBAF), and a dozen or so others, each of which focuses on space to a varying degree. However, they're not pure plays. They’re more analogous to communications.

Did I forget about Virgin Galactic? Of course not. However, they may or may not be a space company, depending on your definition of space.

Karman line

Image credit: NOAA

The most universally agreed upon definition

This article was written by

Michael Dolen profile picture
I prefer to buy long term winners when they have short term problems. You may call them falling knives, I call them being on sale. Most of what I buy is with the mindset of never selling, or at the very least, holding several years. With a long to very long term horizon, volatility doesn't bother me too much. I've been investing for over 20 years now, through 3 major bubbles (dot com, GFC, and the present). I saved up $500, the minimum deposit required to open an UTMA brokerage account, in middle school. I convinced my grandpa to co-sign the account, despite the fact that he nor anyone else in my family owned stocks or any other investments (aside from CDs). Investing has been my foremost interest for as long as I can remember. While classmates may be reading Harry Potter, I was into Security Analysis and the like. Although I grew up trying to emulate the Buffett style, I morphed into more of a Munger mindset. Today, probably Mohnish Pabrai would best reflect my philosophy of favoring undervalued, while not outright ignoring generational growth opportunities. I have been self-employed my entire life and for the last several years, have been investing full time. Prior to that, for 6 years I ran an online business in the credit card space. I started it the same month Bear Stearns went under and despite my poor timing and the fact that all my customers (banks) were in trouble, I maintained profitability every quarter and never took any outside investments or loans. Eventually I sold it to a publicly traded internet company.  While running that business, the cash flow coming from it afforded me the opportunity to make high risk, high reward investments in private biotech companies. Two went public. Life sciences is a great interest/hobby of mine but because it evolves so rapidly and requires immense amounts of continuous due diligence, it is something I now only do on the peripheral of my portfolio. While the vast majority of what I buy may be considered boring, I do make investments in some highly speculative stocks.  Lastly, while I mostly agree that you generally lose more money preparing for a crash than you do in an actual crash, I like to keep a healthy cash allocation on hand for those opportunities when everyone else is panicking. For those funds I prefer munis and in fact, have been betting on long duration for nearly a decade now. Contrary to the prevailing mindset this last decade, there's far too much debt to sustain higher rates for any meaningful amount of time. I have been on Seeking Alpha for at least a decade but did not start writing on here until 2020, due to boredom during covid. Even more than parking, I despise paying for investment research. As such, I will only write about one article on here every 30 days, which is the minimum required to maintain SA Premium access. I would rather slit my wrists than charge you for my content, so you won't see a marketplace service from me. Raised in Michigan, live in Manhattan Beach, CA.

Analyst’s Disclosure: I am/we are long SRAC, SRACU, SRACW, SPCE, LMT. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I am not a financial advisor. This article is general information and should not be misconstrued as investment advice. Please do you own due diligence regarding any stock directly or indirectly mentioned in this article. You should also seek advice from a financial advisor before making any investment decisions.

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