Did the Space SPAC companies go public too soon?
For many companies that are currently in their R&D phase, why do they go public while they're building out their products, awaiting approval from regulators, etc.?

Is it because private investors aren't interested in remaining patient for a bit longer? Or is it because the founders wanted to capitalize on the high valuation that publicly traded startups are reaping?

During the SPAC boom, many space companies from $SPCE $MNTS $ASTR $SATL etc. all went public while being in their pre-revenue phase. All of them are currently generating losses.

The nature of these infant industries is that they need to take their time to develop a working product before they can start generating profits. And most Wall St. investors aren't fond of waiting for profits to come in. They base their decisions on each quarterly earnings release. If milestones are taking longer to reach, these investors lack patience and they'll sell tons of stock at once and depress the company's valuation. Having a lower valuation makes it more expensive to raise capital. And even if that's the cheapest way of raising capital, diluting existing shareholders will create more problems.

With the SPAC bubble, many startups took advantage of the opportunity being presented to them. Because of this, the founders got a huge windfall, the company is under more scrutiny, and the objectives of these companies have changed. The recent stock market sell-off is one reason why many innovative companies like SpaceX and Stripe choose to stay private. They would prefer to see their valuation endure less volatility and work with investors who have more patience for the products and services that the company is developing.

In the meantime, I'll remain skeptical about the many space companies that have gone public. I wish them the best and hope that they can find ways to raise more capital to facilitate their cash burn. If the stock market continues to decline and interest rates continue to surge, the tight credit markets could be a make-or-break moment for these space companies. Since these companies have a high risk of dilution, I see the huge stock market sell-off not providing much of a margin of safety for investors looking to buy the dip on those space companies.
You’re missing $RKLB off your list. Its share price has suffered a similar fate to other space companies but I’ve still got faith because they actually launch rockets into space regularly and more importantly successfully
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Need stock new ideas? Check below
Good morning everyone!

For those of you that don't know or just followed me, I run a L/S US equities portfolio focused on the consumer(tech) and cannabis industries.

I'd highly recommend you check it out 👉🏼 https://cedargrovecapital.substack.com/

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You’re naturally doing what commonstock promotes - transparent advice. I love how you show your holdings to demonstrate skin in the game. Way to go!
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Fly me down to earth (permanently...?)
Some of you may or may not recall my recent post about $SPCE popping on flight tickets going live not too long ago. Well, there may be some turbulent times ahead before things (could) get better.


I have only very recently been paying attention to this company.

I don't dislike the potential $SPCE has, but they need to figure it out.
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My "short" targets
I've come for...


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Upcoming Earnings Calendar (Feb 21th - 25th)
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  • $MELI - How much did inflation impact their logistics margins?
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Fly me to the moon (and beyond?)
$SPCE shares are up ~$2 today

If commercial flights become a common practice with Virgin Galactic in the future, could this stock establish itself as a solid invesment?
Good morning contrarians! Cryptos are moving higher, pointing to healthy risk appetite in the retail sector. But watch for the Fed speeches that could screw up this sentiment

Also some meme stock earnings: $AMC $SPCE and others after the close
contrarianpod.substack.com/p/fed-speeches...
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