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Optifinancial News January 10th, 2021 | SPCE, SRAC, DIS

Updated: Jan 23



In this Issue


Space Investing Boom is Here

...and Disney


Virgin Galactic Holdings

They made an update about their failed test

Momentous Space

This is the AMAZON package delivery service of space

Disney

Overview on the stock and outlook for the upcoming year

Virgin Galactic: SPCE

Virgin Galactic is a space tourism company that intends to start putting humans in space by 2022. They also have plans for a supersonic transcontinental flight which will allow people to go from different cities and countries quickly. Additionally, their vision is to have people stay in space hotels and work in space laboratories. Virgin Galactic Website

Price Forecast

Current Price: $25.69

One Week Target: $27

One Month Target: $30

One Year Target: $80

I could see it being worth $200 in five years.

They are partially owned by the founder Richard Branson who is a billionaire that has created many companies that have gone on to be successes. Chamath Palihapitiya is also an owner because he is a SPAC business creator which raises money for private companies to do reverse mergers. This is how Virgin Galactic recently went public on the market. Chamath is a well-known investor and has been very successful in picking private companies that become profitable and do well. Finally, the ex-CEO of Disney Michael Colglazier is leading Virgin Galactic which is extremely important since he has experience in the tourism sector. His experience and leadership abilities should take the company to new levels after the upcoming test flights begin again.

Virgin Galactic had previously failed its test flight and then released an update that they are already working on the corrective actions to prevent the computer from losing signal again. They will post a new flight window after verification.

A point I want to emphasize is that Virgin Galactic is the only company you should look into for space tourism. They have designed their crafts specifically to take humans to space. The competition was designed for highly trained and healthy astronauts. Their current methods make it hard for the average joe to go on a ride to space.

Virgin Galactic lowers most of the high G-force and the duration at which the rocket is accelerating. They have designed their systems to account for a large percentage of people to travel. Richard Branson is 70 years of age. He intends to be on one of the first flights that he is permitted. This would reveal to investors how wide this market is. Right now the competitors to Virgin Galactic are SpaceX and Blue Origin. However, both of these competitors designed craft for deep space. When they try to outfit their equipment to also be for space tourism they do not have the best ability to go out to space and back. They currently have heat shields and parachutes for coming back into the earth which is not the best way to recover a space tourist since they have less control over where they land. Virgin Galactic can depart and land at any point they choose which is another reason Virgin galactic will win in space tourism.

Buy this company as a long term position in your portfolio. They will have lots of ups and downs but should grow wildly in the next 10 years.

For those interested in options trading, here is an idea from a site we use.

Momentous Space: SRAC

(eventually the ticker will change to MNTS)

This company is a last-mile delivery service. I see them as the amazon of space. They send satellites and any space equipment to multiple orbits in space in one go by using launch services such as SpaceX to get them to space. They currently have three products. Each product is separated into three categories. Near-Earth orbit, far earth orbit, and interplanetary orbit. Watch the video below to see how it works.



Price Forecast

Current Price: $16.25

One Week Target: $17

One Month Target: $19

One Year Target: $35


Long term, I could see this to $250-300


The CEO and founder Mikhail Kokorich has been the top story surrounding this company’s future. The issue which stands in the way of this company is that Mikhail is a Russian citizen and has a complicated past which is making it hard for him to run Momentous as a US business. He currently cannot work with these sensitive technologies due to export laws in the US which keep sensitive information firewalled from non-US citizens. They have stated that they are working towards solutions for these issues and it seems they have ideas on what to do. The biggest concern for momentous is whether their CEO can work with the technologies they have. Usually, leadership is very important in making decisions on technology. For example, having Elon Musk as the leader of Tesla has been very important in their success. You should watch how this story unfolds and if he does get granted an export license to use the technology, then this stock will most likely soar in value because of the certainty that would be granted.


Biding the uncertainty of the CEO, the business model is very attractive as they are the amazon of space. They deliver packages to where they need to go and then go back to base to refuel. Amazon uses distributors like FedEx and UPS to deliver packages.


Momentous will use services such as SpaceX and Blue Origin to send their packages. They will also have a high margin since they are paying the distributor to take them up ( which is getting cheaper every day) and then they will be able to deploy multiple packages every time. They are currently in the progress of acquiring more contracts. They have already secured 90 Million dollars in contracts and plan to secure more this year. They are also launching with SpaceX in February after they retrieve FAA approval to send their equipment into space.


Another key innovation to this company that will literally “propel” them to be viable in the long term future is their propulsion method. Simply stated, they have a microwave and water to propel themselves anywhere. Using water as fuel, this is important for the future in asteroid mining and other avenues since water is plentiful in the universe. They can use the technology anywhere in the solar system, which I find very interesting.


Buy near term before February. Be wary of the FAA approval on the equipment going into space. If it falls through then the flight will need to be pushed back again. Long term, if the company can solve the CEO’s dilemma, we should see this become one of the major space delivery services.

For those interested in options trading, here is an idea from a site we use.

Disney: DIS

The Walt Disney Company is a media and entertainment company. They have been around since 1923 and are showing that they know how to adapt to a changing industry. Disney has had their entertainment parks shut down or at a limited capacity for most of 2020 and at this point don't have plans on reopening fully until COVID-19 has been handled. The Company Launched Disney+ in November of 2019 and has seen huge success. The stock price jumped $20 after the news of several new Marvel and Star wars projects.


Price Forecast

Current Price: $178.40

One Week Target: $180

One Month Target: $185

One Year Target: $200

I expect this stock to move to $200 a share.

Mr. Chapek is coming up on his first anniversary as the CEO of the company. While he is new, he has been with the company for several years and has an impressive track record so far.


“Mr. Chapek’s nearly three decades at Disney have been marked by growth and transformation. A visionary leader, he has championed using creativity and cutting-edge technology to drive expansion and improve the guest and consumer experience developed and successfully implemented groundbreaking business models, and identified new revenue streams to achieve business objectives and sustain long-term growth.”

-The Walt Disney Company


Now a few other reasons I like this as a long term hold is the potential this company has. They own Marvel, Pixar, Lucasfilm, Disney cruise line, and Hulu. “Diluted earnings per share (EPS) from continuing operations for the fourth quarter was a loss of $0.39 compared to income of $0.43 in the prior-year quarter” - The Walt Disney Company These earnings are being heavily impacted by the Disney parks not being fully operational but investors are still looking past that. In my opinion, the price of the stock is still at a good value for the future value that Disney offers.


Disney is a buy and hold.

For those interested in options trading, here is an idea from a site we use.

Thanks for joining us!

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Until next week,


Brad Mitchell

Colby McCoy

and the Optifinancial Team



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