Richard Drury
Since my last coverage, Rocket Lab Corporation (NASDAQ:RKLB) has seen its share price double as investors are seeing the feud between President Trump and the CEO, Chair, and CTO of SpaceX, Elon Musk, as a positive development for the
Rocket Lab: I Was Dead Wrong With My Sell Rating, But I Wouldn't Start A Long Right Now (Rating Upgrade)
Summary
- Given that Rocket Lab is still far from profitability, I believe the narrative plays a more fundamental role in its share price than anything else.
- That narrative is now stronger than ever after the recent tensions between President Trump and SpaceX CEO Elon Musk. This feud could open doors for RKLB.
- Neutron's first launch later this year is a key catalyst, enabling the company to bid for task orders in the $5.6 billion NSSL program.
- The $515 million SDA contract could be vulnerable to defense budget cuts, and the insider selling near the previous resistance level is not encouraging.
- I believe Rocket Lab is a Hold at this price level. That said, if I see a pullback to the low $30s, I may start a long position in this stock.
Small deep value individual investor, with a modest private investment portfolio, split approx. 50%-50% between shares and call options. I have a B.Sc. in aeronautical engineering and over 6 years of experience as an engineering consultant in the aerospace sector. The latter statement is not relevant in any way whatsoever to my investment style, but I thought to add it for self-indulgent purposes. I have a contrarian investment style, highly risky, and often dealing with illiquid options. How illiquid? Well, you can land a Jumbo on the spread and still have clearance for take-off. From time to time, I buy shares, mostly to not be categorized as a degen by my fellow investor friends, therefore the 50%-50% allocation. My timeframe tends to be between 3-24 months.I like stocks that have experienced a recent sell-off due to non-recurrent events, particularly when insiders are buying shares at the new lower price. This is how I often screen through thousands of stocks, mainly in the US, although I may own shares in banana republics. I use fundamental analysis to check the health of companies that pass through my screening process, their leverage, and then compare their financial ratios with the sector, and industry median and average. I also do professional background checks of each insider who purchased shares after the recent sell-off. I use technical analysis to optimize the entry and exit points of my positions. I mainly use multicolor lines for support and resistance levels on weekly charts. From time to time I draw trend lines, taken for granted, in multicolor patterns. Note: I tried to keep my introduction as real, and authentic as possible. I dislike empty suits, high-level BS, deep-level BS, unnecessary jargon, and self-indulgent, third-person written introductions with an air of superiority.Thanks for reading my introduction!
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