Updated: Jan 23, 2021
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RESULTS OF LAST WEEK
We called it! Last week we said the "space investing boom is here." Both companies mentioned here were up 20% this week after we released the article.
Virgin Galactic: Was $25.69 a share and we called to go over $27. It went to $33. If you followed our options trade idea you would have made over $150 per position opened.
Momentous Space: Was 16.25 per share and we called it to go to over $17. The price went to $21 per share. If you followed our option trade idea, you would have made over $165 per position opened.
We believe that there is much more money flowing into these disruptive companies.
Disney: Was $178 and is now $173. We missed this price target in the short term however, we believe Disney will be over $250 in the next year.
IN THIS ISSUE
Famous and successful investor Cathie Wood announced this new space exploration ETF.
Artificial intelligence has arrived. Ark Invest bought half a million shares after a CITI downgraded them. Wallstreetbets on Reddit is hyping this stock.
Much more growth coming!
Ark Invest Space Exploration ETF: ARKX
This is a new ETF that was just announced by Cathie Wood, the CEO of ARK Invest. As of this past week, the EFT holds public companies and even some private space companies that are not listed on the stock exchange. The fund has currently not disclosed its holdings, but there are high chances of pure space plays such as Virgin Galactic (SPCE) or Momentous Space (SRAC) being included in the holdings. Keep your eyes peeled because it can go on the exchange anytime between now and Monday, March 29th. Here is the preliminary prospectus describing the ETF that ARK Invest announced on Wednesday. Space-related stock prices increased substantially on this news.
Currently, ARKX is not listed so we are not giving a price forecast suggestion other than to buy the stocks that are to be potentially held in this ETF: SPCE and SRAC. We have confidence in being included in the ETF. We also covered them last week here.
This is an important opportunity for investors to watch. Below is a compiled thesis on why you should buy as soon as you can into SPCE and SRAC.
The space industry will be worth over one trillion dollars before 2030. Currently, the total space industry is around 350 Billion in 2021. This means some of the companies who are ahead of the game such as SpaceX, Virgin Galactic, and Momentous Space will receive most of the money. Take for example Virgin Galactic which stands at a valuation of seven billion dollars at the moment. If they take 10% of one trillion, they will be valued at over 100 billion dollars. This is an opportunity to multiply your money. If you own one share of SPCE it will multiply by 14 times. In other words, If you hold one share of Virgin Galactic at its current price of $30.70, you would have $429.80 before 2030.
ARKX will bring billions of dollars into the space industry just because of the popularity garnered in Ark Invest in the past few years. Owning shares in any of the companies that they plan to hold in their ETF will go up in price because of the shares that will be bought by this ETF. They will announce this before they go onto the stock exchange which means you should give thought to buying space stocks now before the price surge of the individual stocks they select.
Here is a list of catalysts for space companies in January which shows how active this industry is: credit goes to Gameplayguru from Stocktwits
#1 Virgin Orbit (Virgin Galactic’s sister company) flies Sunday JAN 17TH
#2 Virgin Galactic’s next test flight in late January early February
#3 Virgin Galactic’s 2nd test flight with a full passenger compartment of "employee
astronauts" to test the "customer experience"
#4 The last test flight with Sir Richard Branson in late March
#5 Virgin Galactic’s FAA Certification after the first test flight
#6. SpaceX Starship had 3 "static fire test" JAN 13TH
#7. Blue Origin has flown. JAN 14TH
#8. SpaceX "crew dragon" cargo splashdown! JAN 13TH
#9 SpaceX Starship will attempt a suborbital flight test Friday JAN 15TH
#10 Cathie Wood ARKX creation and inclusion in 71 days max.
NOTE: George Whitesides (CEO of Virgin Galactic) and his wife and Mike and Beth Moses will be on the 2nd and 3rd Virgin Galactic test flights.
It is speculated that Cathie Wood’s new ETF could hold SpaceX. Currently, public investors cannot hold SpaceX directly and can only invest in mutual funds that hold a very small percentage of this company. If SpaceX is announced as one of the holdings this will bring a very large surge of money into this ETF because many investors are eager to invest. Check this video out here explaining in more detail about this potential addition of SpaceX into the ETF.
Here’s an article from Seeking Alpha stating that they are buying this ETF. They go into a lot of detail on the current status of the ETF but also talk about the potential opportunities with it.
We recommend buying ARKX when it goes on the exchange. This will see large inflows of money in the year ahead which will bring the companies that ARKX owns up in value substantially.
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Palantir - “The software connects to commercial, proprietary and public data sets and discovers trends, relationships and anomalies, including predictive analytics.” This stock is a high-risk high reward for us. We have a decent amount of uncertainty in the market this coming week so I would keep an eye on Palantir. A small drop in the stock price might be a good opportunity to buy for a long term hold.
A couple of catalysts for Palantir this week would be Cathie woods adding Palantir to her ARK ETF. “Shares soared after reports said star money manager Cathie Wood's ARK Next Generation Internet ETF bought 497,100 shares of the data analytics software provider.” Palantir has announced a demo day in which they will lay out their 2021 plans. “Product leads will show the latest releases of each platform, and describe the upcoming research & development roadmap for 2021. Palantir will cover examples of its commercial and government work.” This will give some more insight on their future.
Watch for a drop in the price and a chance to buy the stock low.
Current Price: $25.92
One Week Target: $26.50 (Depending heavily on how the market is moving)
One Month Target: $30
One Year Target: $60
This stock IPO’d in September 2020, but has been around since 2003. I think as we see more success in their data analytics we will see the value of their stock shoot up. Once again, this is a higher risk stock for me, but definitely one that I have been buying on dips. Another interesting factor that could be playing a role in the stock price future is the popular subreddit Wallstreetbets. It has over 1.6 Million members and they have been constantly talking about buying Palantir.
If you have a decent tolerance for volatility I would rank this stock as a BUY.
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Pinterest is an online sharing platform with photos of recipes, fashion, and pretty much anything else that you can imagine. I have personally used Pinterest for several years and I have watched the app develop ways to become more profitable. They have added ways to be taken directly to the site to make a purchase on an item being shown off. They have grown 212% this year from increased usage during the quarantine.
I expect this stock to move to $80 a share on a good Q4 report. Current Price: $69.50 One Week Target: $72-73 One Month Target: $80 (on good Q4 earnings) One Year Target: $110 Pinterest has Q4 earnings on February 4th which could cause the stock price to rise. Pinterest likes to hold its price point until it has a catalyst to move up and then it makes significant leaps in value. “Q3 revenue grew 58% year over year to $443 million. Global Monthly Active Users (MAUs) grew 37% year over year to 442 million.” The growth in the monthly active users is the biggest sign that Pinterest is moving in a direction that could be huge. Leadership at Pinterest is also a strong reason to believe in the company. Ben Silbermann is the founder and CEO of Pinterest which was started in 2012. He is well-liked amongst the company and has done a great job improving and moving Pinterest forward. Pinterest is a buy for us.
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