$SPCE - Virgin Galactic - Value Hail Mary?Fundamental Play:
Current Price of NYSE:SPCE is at $2.77 with 35.53million shares outstanding giving it a current valuation of just around $98,500,000.
SPCE has over $600 million in cash Reserves as of December 2024.
Cash Value vs. Market Cap
Cash and equivalents: ~$657 million
Current market cap: ~$98 million
That’s ~6.7x more cash than the company’s total market value.
This means: If Virgin Galactic liquidated today and no other liabilities existed, shareholders could theoretically walk away with more than 6x the current share price. That’s an extreme case and not practical — but it gives a sense of undervaluation from a liquidation perspective
Remember the company still has negative earnings, is burning cash rapidly ($115 to $125m a quarter), and has uncertain future revenues so there is room for a lot of speculation. They would need some extra funding or start making revenue soon. Very risky stock at the moment with an over 70% chance of bankruptcy.
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