SPCE Ready to Go? Virgin Galactic Holdings
Short Term - We look to Buy at 10.11 (stop at 9.18)
Broken out of the channel formation to the upside. Trading volume is increasing. Dip buying offers good risk/reward. Previous resistance, now becomes support at 10.00.
Our profit targets will be 14.31 and 16.41
Resistance: 14.00 / 17.00 / 20.00
Support: 10.00 / 7.00 / 5.00
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SPCE trade ideas
I made some pretty wild assumptions on SPCEI've been looking at this company and I've been trying to justify a positive valuation in the future. The only way that you can make sense of investing in this company is if you stretch your assumptions not for 5 but for 10 years from now. The biggest factor that will contribute to making that company profitable and scalable is the DELTA class that is suppose to be completed in 2025/ 2026. In the earnings call they said that they are projecting to be profitable in 2026 and they are working to create a system where they can build up to 6 delta ships per year efficiently. So in my Discount model calculations I've used the current ship classes up to year 4 and basically they are losing money for the next 4 years as they are trying to reduce the cash burn. From the 5th year to the 10th year I'm assuming that they will add 3 Delta ships per year to their fleet. After all the calculations that i conjured my intrinsic value comes to 46 dollars per share if they don't do a stock dilution, "they probably will to float the company till profitability". I'm assuming that I'm going to be half wrong with my assumptions and the intrinsic value for the next 10 years comes up to 23 bucks. The current price is 9 dollars per share. That is still 61% undervalued from my 23 dollar projections. So I think its a good buy from here. At least for the next couple of years. If they run out of money that is a different story.
SPCE an easy 3x from hereI think not only that it is possible to 3x this year from here. I think that it is probable. No one likes the stock right now and 25% of the free float is being shorted right now. This is a recipe for a sort squeeze or short covering. If it goes lower in the mean while just add more.
SPCE some simple calculations to monitor the financial safety I made a simple spread sheet to calculate what is the current financial health of this company. Keep in mind that this is my personal thought process and it might not be very accurate, but i would rather be a little off then not knowing exactly what is going on. Since this is a pre revenue company that loses money every year the thing that we need to analyze is how much cash they have on hand at all times on their balance sheet and what is their burn rate. Cash and short term investments 629 450 000 at the moment, their net loss last year was 230 000 000 which means that if not one cent gets injected in to the company for the next 2,73 years they will run out of money. I also calculated their Shares/ Cash which comes that 2,44$ of their current share price is covered by their cash and short term investments. So if you calculate the share price without the 2,44$, currently you are getting the company for 4,84$, which in my opinion in the current market environment is pretty cheap. I currently have a good chunk of shares in my portfolio on an average price of 11 bucks, but im planning to average down every 2 dollars that the share price falls, if it falls more. So my thinking is that considering that this is a futuristic aerospace company these price levels provide a relatively safe bet for 200- 400% gain in the next couple of years. Also they can always do a dilution for money money or get in more debt until they become profitable.
SPCE a great buy at these pricesYou should be excited when the market is providing you with the opportunity to build a nice position at these levels. I always get excited when a company i like crashes for external reasons. We can easily finish the year in the 30s. There is nothing positive for the sentiment at the moment. This means a good development can sharply turn the price around and ones the shorts are forced to cover the price can spike.
Virgin Galactic Holdings (SPCE) long term investment ideaMy view on Virgin Galactic Holdings.
The reason for the stocks to drop from $62 was mainly because of virgin group selling shares to keep the business alive. Since there it was in a downtrend.
-After the Italian air force flight virgin galactic disclosed that they want to sent the mothership (the plane which carries the spaceship) to maintenance and upgrade for a 8 month period. In this period you cannot fly the spaceship because you need the mothership. The benefits of this longer maintanace period: They will be able to fly the mothership 100 times without maintenance, instead of only 10 times with short maintenance. This will be great when they will open commercial flights which is expected to be in Q4 2022.
- Things were delayed abit because of the FAA situation.
"Virgin Galactic may not return the SpaceShipTwo vehicle to flight until the FAA approves the final mishap investigation report or determines the issues related to the mishap do not affect public safety," the agency said.
This problem with the FAA is solved but this delayed the flight.
I waited out for the stock price to bleed out during the maintenance period to buy more shares.
I try to compound at prices where it is depressed and where nobody wants to buy them or hear about the stock anymore, thats usually a good spot to buy. My lowest compound price: $7.18 and highest compound price : $24.10.
Virgin group has sold shares in virgin galactic and also Richard Brandson just to help their airline business . When the business do better they wont need to cash out out of virgin galactic to try to make the other businesses survive.
SPCE ones this company starts generating revenue I cant see the stock staying below 50 bucks. And that is on the low end. If they start scaling a profitable business model this stock can easily go to like 300 bucks. You just have to sit trough the ups and downs and hope they dont run out of money before that. At the moment they have plenty of cash so it is safe to buy. I was really hoping to double my stack below 6 but it looks like it wont happen.
$SPCE Next Target PT 2.70 and higherVirgin Galactic Holdings, Inc., an integrated aerospace company, develops human spaceflight for private individuals and researchers in the United States. It also manufactures air and space vehicles. The company's spaceship operations include commercial human spaceflight, flying commercial research, and development payloads into space. In addition, it engages in the design and development, manufacturing, ground and flight testing, and post-flight maintenance of spaceflight vehicles. The company was founded in 2017 is headquartered in Las Cruces, New Mexico.
SPCE opens commercial ticket salesCustomers can make an initial deposit of $150,000 from a total cost of $450,000 for a 90-minute spaceflight, which includes “several minutes of out-of-seat weightlessness,” the company said.
My price target is the $14 resistance.
Looking forward to read your opinion about it.
Virgin Galactic (NYSE: $SPCE) Ready To Rocket Up The Chart! 🚀Virgin Galactic Holdings, Inc., an integrated aerospace company, develops human spaceflight for private individuals and researchers in the United States. It also manufactures air and space vehicles. The company's spaceship operations include commercial human spaceflight, flying commercial research, and development payloads into space. In addition, it engages in the design and development, manufacturing, ground and flight testing, and post-flight maintenance of spaceflight vehicles. The company was founded in 2017 is headquartered in Las Cruces, New Mexico.