Skip to main
Tim McCormick
@Astranautica
It’s Wednesday my #PublicPeople 🐸 🚀🚀🚀🚀🚀🚀🚀🚀 I was asked by one of my favorite people on here @ctsshah , about my take on the #spacesector so here are we go!! Deep Value plays in the space industry: $RKLB and $ASTR 🚀🚀🚀🚀🚀🚀🚀🚀🌕 TL:DR on the bottom 😇 ------------------------- #spaceexploration #space #spacestocks Space is a fairly new industry in terms of traditional stock market exposure/risk, but in most situations it’s often the newer fields and technologies that have the best asymmetrical upside for investors. Now I’ve always been a fan of space and the development of aerospace technologies for my entire life, but I’ve also been an investor (aka degenerate gambler). Astra and Rocket Lab are both companies that produce rockets that are/have gone public via SPAC this year. Rocket Lab will complete its merger on August 20th after an investor vote but when it does it’s likely to behave the same way astra did. When Astra merged with its SPAC the price pumped hard from $10-$11 up over $15 before crashing down to $8 currently. This is basically pure hype and the fact that investors want good exposure to the space industry. Rocket Lab is a massively undervalued company that is known as the best small satellite launch provider in the world. It uses high strength carbon fiber to build reusable rockets which can fire into very direct and specific orbits better then traditional larger providers like SpaceX. But it’s biggest value comes in the fact that they are using their position as the current best and most used small sat launcher to develop medium lift rockets capable of competing directly with the SpaceX Falcon 9. They also have developed the first modular and modifiable commercial spacecraft. Within the next two years Rocket Lab will be sending a private scientific mission to Venus to show off the capability of the worlds first commercially available and modifiable Photon spacecraft (essentially a bulky satellite for interplanetary travel) that it expects to sell to governments and universities etc around the world. Think also about the companies interested in asteroid mining which could use these too. Astra on the other hand has a specific but great niche. They are run by former NASA people and are dedicated to the idea of simplification and scaling. They are very far along with their development of a rocket small enough to fit into a shipping container but simple enough to be mass produced. They want to be the Cessna to spaceX’s 737. It’s a good idea. There are plans to have an American lunar base within a decade and the Russians and Chinese have the same goal and timeline. There is a lot of support and commercial opportunities that can come from the establishment of bases like these. See, we are at the beginning of a space race, China sent a rover with the specific design and intention of finding the best place to put a manned Martian base, as well as their deployment of a Chinese space station. This stuff is getting real spicy and the market has not factored in the tremendous growth that comes with the sheer number of people who can benefit from accessing space whether it’s for colonization, mining, exploration, scientific endeavors/experimentation, or most importantly manufacturing. (When you don’t worry about gravity gravity doesn’t squash the thing you’re 3D printing before you print the rest of the support structure). The upside is insane and it’s being overlooked because space is seen as risky and crowded and people are wary of SPACs. These two specific companies, especially Rocket Lab, fill a fantastic niche not filled by anyone else. The drive and scientific intent of their founders/CEOs are the type of exploration oriented drive that will actually propel innovation instead of just sitting and doing the bare minimum like Blue Origin, ULA, or some of the other larger standard launch providers do. Those companies are about to be disrupted on a massive scale. Rocket Lab is trading at about $10 as Vector Acquisition but post merger we could expect a massive spike in valuation as the more wary investors pile in after the SPAC risk is over. The options are cheap as hell on both companies too. Because Astra is basically the only other new small launch provider that’s public it makes sense that an increased valuation and bullish run on the price of Rocket Lab will correspond with the same investors diversifying risk into Astra as well (which is seen by investors as an equivalent small sat launcher), causing a pump. Considering the merger vote meeting is planned for the 20th of this month, I’m surprised that IV isn’t higher for Rocket Lab or Astra, but it’s beginning to trend upwards as more investors decide to sink some change into the company. It’s surprising to me how little coverage this stock has gotten. It’s going to be a massive story when it blows up this month, but for now everyone seems to be silent. They have the technical understanding, the track record, multiple government contracts already, and the prospect of a space race all going for them, that’s some deep value if I’ve ever seen it. I realized this opportunity not from researching the stock but from the company itself, I love space and I am a fan of following the rapid development of the industry. A whole lot of people are starting to plan businesses around space and investing big bucks, and they all need a rocket to get them there. The fact that Rocket Lab is setting itself up with the Neutron medium lift rocket to directly compete with SpaceX is alone a massive indicator of future value. SpaceX is valued over $70 billion and the current valuation of Rocket Lab is just $4 billion. That’s a lot of room for growth. $SPCE is a good play but it is a space tourism company and they still value it at $10 billion, these companies have such a broader and consistent consumer base as compared to something as risky and unfounded as space tourism, which indicates the massive undervaluation situation we have in RKLB and ASTR. TL:DR; because of global politics and reduced costs of rockets, Rocket Lab ($RKLB) and Astra ($ASTR) are set up to become massive mid to large cap businesses tho they trade at absurdly low valuations today.
10
0
Own your future.
Build your portfolio.

Invest in everything on Public

Public is an all-in-one investing platform where you can build a multi-asset portfolio that includes everything from stocks and options to bonds, crypto, and a High-Yield Cash Account.
Sign Up
Contact Us
Check the background of this firm on FINRA’s BrokerCheck.

© Copyright 2024 Public Holdings, Inc. All Rights Reserved.

Market data powered by Xignite.

All investments involve the risk of loss and the past performance of a security or a financial product does not guarantee future results or returns. You should consult your legal, tax, or financial advisors before making any financial decisions. This material is not intended as a recommendation, offer, or solicitation to purchase or sell securities, open a brokerage account, or engage in any investment strategy.

Stocks, ETFs, Options, Bonds.
Self-directed brokerage accounts and brokerage services for US-listed, registered securities, options, and Bonds, except for treasury securities offered through Jiko Securities, Inc., are offered to self-directed customers by Open to the Public Investing, Inc. (“Public Investing”), a registered broker-dealer and member of FINRA & SIPC. Additional information about your broker can be found by clicking here. Public Investing is a wholly-owned subsidiary of Public Holdings, Inc. (“Public Holdings”). This is not an offer, solicitation of an offer, or advice to buy or sell securities or open a brokerage account in any jurisdiction where Public Investing is not registered. Securities products offered by Public Investing are not FDIC insured. Apex Clearing Corporation, our clearing firm, has additional insurance coverage in excess of the regular SIPC limits. Additional information can be found here.

Options.
Certain requirements must be met in order to trade options. Options can be risky and are not suitable for all investors. Options transactions are often complex, and investors can rapidly lose the entire amount of their investment or more in a short period of time. Investors should consider their investment objectives and risks carefully before investing in options. Refer to the Characteristics and Risks of Standardized Options before considering any options transaction. Supporting documentation for any claims, if applicable, will be furnished upon request. Tax considerations with options transactions are unique and investors considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy.

Options Order Flow Rebates.
If you are enrolled in our Options Order Flow Rebate Program, Public Investing will share a percentage of our estimated order flow revenue for each completed options trade as a rebate to help reduce your trading costs. Rebate rates vary monthly from $0.06-$0.18 and depend on your current and prior month’s options trading volume. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. To learn more, see our Options Rebate Program Terms & Conditions, Order Rebate FAQ and Fee Schedule.

Bonds.
“Bonds” shall refer to corporate debt securities and U.S. government securities offered on the Public platform through a self-directed brokerage account held at Public Investing and custodied at Apex Clearing. For purposes of this section, Bonds exclude treasury securities held in treasury accounts with Jiko Securities, Inc. as explained under the “ Treasury Accounts” section.

Investments in Bonds are subject to various risks including risks related to interest rates, credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. The value of Bonds fluctuate and any investments sold prior to maturity may result in gain or loss of principal. In general, when interest rates go up, Bond prices typically drop, and vice versa. Bonds with higher yields or offered by issuers with lower credit ratings generally carry a higher degree of risk. All fixed income securities are subject to price change and availability, and yield is subject to change. Bond ratings, if provided, are third party opinions on the overall bond's credit worthiness at the time the rating is assigned. Ratings are not recommendations to purchase, hold, or sell securities, and they do not address the market value of securities or their suitability for investment purposes.

A Bond Account is a self-directed brokerage account with Public Investing. Deposits into this account are used to purchase 10 investment-grade and high-yield bonds. The Bond Account’s yield is the average, annualized yield to worst (YTW) across all ten bonds in the Bond Account, before fees. A bond’s yield is a function of its market price, which can fluctuate; therefore a bond’s YTW is not “locked in” until the bond is purchased, and your yield at time of purchase may be different from the yield shown here. The “locked in” YTW is not guaranteed; you may receive less than the YTW of the bonds in the Bond Account if you sell any of the bonds before maturity or if the issuer defaults on the bond. Public Investing charges a markup on each bond trade. See our Fee Schedule.

Bond Accounts are not recommendations of individual bonds or default allocations. The bonds in the Bond Account have not been selected based on your needs or risk profile. You should evaluate each bond before investing in a Bond Account. The bonds in your Bond Account will not be rebalanced and allocations will not be updated, except for Corporate Actions.

Fractional Bonds also carry additional risks including that they are only available on Public and cannot be transferred to other brokerages. Read more about the risks associated with fixed income and fractional bonds. See Bond Account Disclosures to learn more.

High-Yield Cash Account.
A High-Yield Cash Account is a secondary brokerage account with Public Investing. Funds in your High-Yield Cash Account are automatically deposited into partner banks (“Partner Banks”), where that cash earns interest and is eligible for FDIC insurance. See here for a list of current Partner Banks. Your Annual Percentage Yield is variable and may change at the discretion of the Partner Banks or Public Investing. Apex Clearing and Public Investing receive administrative fees for operating this program, which reduce the amount of interest paid on swept cash. Neither Public Investing nor any of its affiliates is a bank. Learn more.

Cryptocurrency.
Cryptocurrency trading, execution, and custody services are provided by Bakkt Crypto Solutions, LLC (NMLS ID 1828849) (“Bakkt”). Cryptocurrency is highly speculative, involves a high degree of risk, and has the potential for loss of the entire amount of an investment. Cryptocurrencies offered by Bakkt are not securities and are not FDIC insured or protected by SIPC. Your cryptocurrency assets are held in your Bakkt account. Bakkt is a licensed virtual currency business by the New York State Department of Financial Services and a licensed money transmitter, but is not a registered broker-dealer or a FINRA member. Your Bakkt Crypto account is separate from your brokerage account with Public Investing, which holds US-listed stocks and ETFs. Please review the Risk Disclosures before trading.

Treasury Accounts.
Investing services in treasury accounts offering 6 month US Treasury Bills on the Public platform are through Jiko Securities, Inc. (“JSI”), a registered broker-dealer and member of FINRA & SIPC. See JSI’s FINRA BrokerCheck and Form CRS for further information. JSI uses funds from your Treasury Account to purchase T-bills in increments of $100 “par value” (the T-bill’s value at maturity). T-bills are purchased at a discount to the par value and the T-bill’s yield represents the difference in price between the “par value” and the “discount price.” Aggregate funds in your Treasury Account in excess of the T-bill purchases will remain in your Treasury Account as cash. The value of T-bills fluctuate and investors may receive more or less than their original investments if sold prior to maturity. T-bills are subject to price change and availability - yield is subject to change. Past performance is not indicative of future performance. Investments in T-bills involve a variety of risks, including credit risk, interest rate risk, and liquidity risk. As a general rule, the price of a T-bills moves inversely to changes in interest rates. Although T-bills are considered safer than many other financial instruments, you could lose all or a part of your investment. See Jiko U.S. Treasuries Risk Disclosures for further details.

Investments in T-bills: Not FDIC Insured; No Bank Guarantee; May Lose Value.

Banking services and bank accounts are offered by Jiko Bank, a division of Mid-Central National Bank. JSI and Jiko Bank are not affiliated with Public Holdings, Inc. (“Public”) or any of its subsidiaries. None of these entities provide legal, tax, or accounting advice. You should consult your legal, tax, or financial advisors before making any financial decisions. This material is not intended as a recommendation, offer, or solicitation to purchase or sell securities, open a brokerage account, or engage in any investment strategy.

Commission-free trading refers to $0 commissions charged on trades of US listed registered securities placed during the US Markets Regular Trading Hours in self-directed brokerage accounts offered by Public Investing. Keep in mind that other fees such as regulatory fees, Premium subscription fees, commissions on trades during extended trading hours, wire transfer fees, and paper statement fees may apply to your brokerage account. Please see Public’s Investing’s Fee Schedule to learn more.

Fractional shares are illiquid outside of Public and not transferable. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see our Fractional Share Disclosure to learn more.

Investment Plans. Investment Plans (“Plans”) shown in our marketplace are for informational purposes only and are meant as helpful starting points as you discover, research and create a Plan that meets your specific investing needs. Plans are self-directed purchases of individually-selected assets, which may include stocks, ETFs and cryptocurrency. Plans are not recommendations of a Plan overall or its individual holdings or default allocations. Plans are created using defined, objective criteria based on generally accepted investment theory; they are not based on your needs or risk profile. You are responsible for establishing and maintaining allocations among assets within your Plan. Plans involve continuous investments, regardless of market conditions. Diversification does not eliminate risk. See our Investment Plans Terms and Conditions and Sponsored Content and Conflicts of Interest Disclosure.

Alpha.
Alpha is an experiment brought to you by Public Holdings, Inc. (“Public”). Alpha is an AI research tool powered by GPT-4, a generative large language model. Alpha is experimental technology and may give inaccurate or inappropriate responses. Output from Alpha should not be construed as investment research or recommendations, and should not serve as the basis for any investment decision. All Alpha output is provided “as is.” Public makes no representations or warranties with respect to the accuracy, completeness, quality, timeliness, or any other characteristic of such output. Your use of Alpha output is at your sole risk. Please independently evaluate and verify the accuracy of any such output for your own use case.

Market Data.
Quotes and other market data for Public’s product offerings are obtained from third party sources believed to be reliable, but Public makes no representation or warranty regarding the quality, accuracy, timeliness, and/or completeness of this information. Such information is time sensitive and subject to change based on market conditions and other factors. You assume full responsibility for any trading decisions you make based upon the market data provided, and Public is not liable for any loss caused directly or indirectly by your use of such information. Market data is provided solely for informational and/or educational purposes only. It is not intended as a recommendation and does not represent a solicitation or an offer to buy or sell any particular security.