- Ark Invest just announced the coming launch of a space-sector ETF - likely ticker ARKX. This is wonderful news for the sector.
- As big Ark fans we plan to own a good allocation of ARKX.
- And as space-sector experts we're super excited about the impact Cathie Wood's latest move can have on the sector.
- We launched our space-sector buyside research work back in 2017 and along the way we've chalked up great wins with Maxar, Virgin Galactic, Momentus Space, Aerojet Rocketdyne and others.
- Join us. The space sector is about to go mainstream!
DISCLAIMER: This note is intended for US recipients only and in particular is not directed at, nor intended to be relied upon by any UK recipients. Any information or analysis in this note is not an offer to sell or the solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice and nor should it be relied upon to make investment decisions. Cestrian Capital Research, Inc., its employees, agents or affiliates, including the author of this note, or related persons, may have a position in any stocks, security or financial instrument referenced in this note. Any opinions, analyses, or probabilities expressed in this note are those of the author as of the note's date of publication and are subject to change without notice. Companies referenced in this note or their employees or affiliates may be customers of Cestrian Capital Research, Inc. Cestrian Capital Research, Inc. values both its independence and transparency and does not believe that this presents a material potential conflict of interest or impacts the content of its research or publications.
We'll Keep It Short And To The Point
In 2017 we got started with our space-sector buyside research work. Buyside, because we eat our own cooking. The work we do is what underpins our own personal account investing and trading. We publish our Seeking Alpha work mainly in our subscription service, with some notes on the 'free' side of Seeking Alpha along the way. Our background is institutional technology investing; it's a small step from tech to space, as Elon Musk and Jeff Bezos (and the late Paul Allen) could tell you. Before we launched, we took ourselves off to the International Space University (yes, that is a thing, no, sadly, it's not in space) to get smart on the sector. And we started shamelessly calling all the companies in the sector to get smart and ensure a smooth and uneventful launch - no pad disasters needed here.
We've chalked up some great wins along the way. Probably our single best call was Buy on Maxar Technologies (MAXR) in April 2020 - the stock was at $10 and change then and in premarket at the time of writing sits at $45, so, a 4.5x return in less than a year (that's a 600% IRR if you care to look at it that way).
Cestrian Capital Research, Inc - MAXR Ratings, Seeking Alpha
We've had a $45 price target on MAXR for some time now - that assumes a standalone price run-up. We still see $60+ as possible if the company were to be sold, which we think has every chance of happening.
We've also scored big on Virgin Galactic (SPCE). We bought in before the completion of its reverse merger with the IPOA SPAC and flagged it as a speculative growth opportunity. The stock has gone from $11 or so to $31 and change in premarket right now - so a 2.8x return since the middle of 2019.
Finally for now - Aerojet Rocketdyne (AJRD). We called this as a company that was in superb shape standalone and which we expected to be acquired. Which it was, right at the end of 2020, by Lockheed Martin (LMT). We and our subscribers did rather well from that too.
Space is a young industry. That's why it's growing at such a huge rate, and why it's starting to consolidate - because larger corporations see small companies like MAXR with huge market opportunities ahead of them. We expect continued growth in the sector, plenty of new IPOs to get into, and serial M&A to generate a little extra excitement. The sector is just getting started as an investment prospect.
We operate a leading - maybe the leading, but maybe not, who knows - space sector research service right here on Seeking Alpha. We have a whole lot of very happy subscribers, as you will see from our reviews. We're expert in the sector, have strong industry links and regular conversations with management teams in the sector, and so far our calls have been pretty good.
Cestrian Capital Research, Inc - 14 Jan 2021.
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- Leading space-sector coverage of all the key names - including both long-term investment opportunities and short-term trading ideas.
- 'CyberSecurity-36' medium-term 3-year horizon investment portfolio.
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We run a real-money service publishing the research we conduct to invest personal account funds. Subscribers get alerts on any planned buy or sell order in covered stocks, ahead of time. You get the opportunity to buy or sell before we do.
Analyst's Disclosure: I am/we are long MAXR, SRAC, SPCE, LMT.
Cestrian Capital Research, Inc staff hold personal account long position(s) in MAXR, SPCE, SRAC.U and LMT, together with every Ark Invest ETF (ARKK, ARKQ, ARKW, ARKF, ARKG, PRNT, IZRL).
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.