r/stocks
Space companies - The real underdogs
New investor shares high-risk portfolio thesis on space, rare earths (platinum), and semis, seeking feedback on specific ETFs and stocks like RDW.
- Space industry growth potential parallels the AI sector's trajectory over the next decade.
- Specific companies like FLTCF show strong fundamentals with profitability and cash reserves while serving key players like SpaceX.
- Diversified exposure through ETFs (UFO, SMH) balances risk in high-growth sectors.
- Red Wire Corp (RDW) carries debt, negative profitability, and uncertainty regarding its acquisition-heavy strategy.
- Heavy concentration in speculative assets like platinum and early-stage space firms increases portfolio volatility.
- Space companies generally face long R&D cycles and reliance on government contracts before achieving consistent cash flow.
I am pretty new to the investment world and have been trying to understand the US markets for sometime being an Indian. I have a pretty strong thesis on why space will pick up trends just like AI. Just want to hear opinions from the seasoned investors of this sub. What y'all think about the future of space companies in next 10 years of horizon? My US portfolio is a very high risk bet on rare earth metals and space/semiconductor domains. I have invested in below etfs -
1) PPLT - I believe platinum is a super metal and is criminally underrated. Instead of going the standard gold/silver route I have invested a major chunk of my portfolio into this as a lumpsump
2) SMH - Semiconductor exposure cause why not.
3) UFO - A more balanced space exposure, am planning to start an sip on this one.
4) Nasa - Am well aware of cross exposure with UFO but got it for short term gains post spacex ipo release.
A few interesting companies -
1) Red wire corp (RDW) - They have an acquisition first kinda approach. Got some debt and negative profitability. But it's sorta common for space companies to not show profit as they are R&D heavy and rely on gov contracts. Am pretty uncertain about their acquisition first approach and not sure if they will be able to turn it into a positive cashflow company
2) FLTCF - Caters to spacex for space comm. Cash heavy and is profitable. YoY growth has been impressive as well.
Also I would appreciate comments on my portfolio and research about space companies. Feel free to drop your research as well!!!!
This is research??
Yess
More like slop
It's not AI generated , wrote it myself
There are already so many satellites over the Earth that they threaten to run into one another. There are so many issues with going to Mars that it seems unlikely to happen within the next ten years. As far as I know, every country is still bound to an agreement not to exploit the Moon's resources. What do you see as the business of these space companies?
Telecommunications and defense. Until there are so many satellites that they crash into each other and surround the earth with a halo of debris that traps us here (this is called Kessler syndrome).
Totally agree with you, but these problems are definitely not a dead end. And governments are heavily funding researches on space exploration be it of India, china, US or russia. We are in a place where we are literally catching rockets mid air which used to be labelled as impossible. I won't say that it's gonna be a walk in the park. we are literally talking about making human beings an interplanetary species. But with AI on our side I am pretty optimistic about it.
I prepared a long reply to you but Reddit deleted it because I had included links to videos to refute your claims. To start with, search for "life on mars feynman". India, China and Russia will not buy rockets from another country because they are considered defensive weapons and no one wants their secrets to be revealed. You are being sold a basket of hype. Carefully do your research on the companies that you are interested in. The ETFs you mentioned are safer than investing in individual stocks but the concept is still very risky.
Ik that buddy that's why it's clearly mentioned in my post that those are high risk picks on my portfolio. Also unless these countries figure out a way to catch rockets midair we shouldn't even include them in the space race cause it all boils down to how effectively we can send matter to space without losing billions. Sending satellites and having a space station is literally nothing in front of colonising another planet where clearly US is winning cause of companies like spacex!!!
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