I still think the Redwire case is pretty strong even after this recent pullback

I get why the stock got hit. The dilution due to ATM news was ugly and the whole space basket has been all over the place around the SpaceX frenzy. Tbh, RDW had run so high that it was probably asking for a reset anyway.

The reason I still have conviction is that the actual business has gotten a lot stronger than the stock action makes it look. Revenue was up a ton in the latest quarter, backlog hit a record, gross margins improved, and they’re clearly not just some random moonshot ticker with no contracts behind it. They’ve got real exposure across space infrastructure, defense, satellites, drone systems, solar arrays, ISS/lunar hardware, European space programs etc and all the stuff that makes the broader space/defense buildout work.

I think Redwire is positioned to take the most advantage of the current space race due to it being more like an amalgamation of a bunch of older space companies that already had actual product expertise before they got rolled together under Redwire. It already has pieces of legacy space hardware, deployable structures, solar arrays, avionics, mission systems, in-space manufacturing, VLEO satellite work, defense drones etc all under one roof now.

That doesn’t mean the bear case is not there. It isn’t. The dilution is real, the cash burn is real, and I completely understand why people don’t want to pay up for a company that still has to prove it can convert backlog into durable cash flow. That’s the part the market is fighting over right now. I’m not saying it’s risk-free or that the stock can’t get cheaper, because obviously it can. I just think that RDW is poised to perform in the longer run.

Curious where other people land on RDW right now, especially whether the recent selloff/dilution changed your view on the business itself or your own take on this.