Virgin Galactic opens the door to space. Are SPCE shares an opportunity?
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Virgin Galactic is primarily engaged in the development and implementation of space travel flights . There is talk of a space tourism sector. Not only the charismatic, successful businessman and founder Richard Branson attracts the attention of the media and investors, but also the ambitious visions and plans of the Virgin Group, which wants to literally open the door to space with Virgin Galactic. The space future and Virgin Galactic (SPCE) stocks await rocket growth? Are SPCE shares an investment opportunity?
Virgin Galactic, a company founded in 2004, is a rather media-rated company that brings together loyal fans and investors. Her plans and visions are admirable, catchy, universally huge and above all tech-sexy.
If we stand firmly on the ground, we must realize that Virgin Galactic has been spending hundreds of millions of dollars for 16 years (yes 16! Years), while the only thing they have been able to produce is an airplane, a rocket and a test (and first production) flight.
Virgin Galactic is a start-up that has set out in an unexplored field and needs not only hard work, money and luck to succeed, but also innovative technology, the most experienced people in the industry, investor patience and a lot of excuses and humility for tragic accidents (which were and can be expected to occur in the future).
Investing in such a company sounds very good at a beer in a pub, at the time of the Covid-19 lockdown it also sounds good on social media. It is a subject that you do not argue with numbers, so it is more about the beliefs of individuals supported by their reasonable and unreasonable arguments.
Nevertheless, investing in Virgin Galactic shares should all be made prudently and, above all, on the basis of certain knowledge.
However, Virgin Galactic is interesting not only in terms of investment profit, but also for its business plan and the implementation of something where de facto there is no market yet. For start-ups and entrepreneurs, this is a new textbook and path that will (I believe) be shown in the future as one of those that have helped humanity reach new milestones.
Why haven’t I invested in Virgin Galactic before
When looking for investment-friendly companies on the stock market, I could not miss the unconventional start-up Virgin Galactic. Richard Branson has been one of my business and visionary role models I have followed for several years. Of course, I had read his books as The hell with it, let’s do it (Screw It Let’s Do It) and Business in full nudity (Business Stripped Bare), where I peered closer to his ideas and business plans and implementation.
When Virgin Galactic went public in 2019, I already had some experience with the stock market, but my strategy was rather conservative and strongly funded. I preferred shares of Berkshire Hathaway, ETF SP500, Nasdaq, or manually selected companies with fundamentals, such as Apple, Facebook, Qualcomm, Intel.
Virgin Galactic shares were largely unknown to me. A company with plans without any real results. Only test flights that did not indicate whether the company would succeed or not. In addition, space tourism still seemed very distant to me.
With the development of business and investment activities, I adjusted my investment strategy in the second half of 2020, which expanded to include the category of speculative investment opportunities.
This allowed me to broaden my horizons and be more interested in what is happening in the stock market.
I began to study old and new companies more closely. In this context, I also founded the Digital Investment Diary , where I report the most important events on the stock market and selected companies where I see an investment opportunity.
Unfortunately, I did not manage to buy Virgin Galactic (SPCE) shares at the end of 2020 for approximately USD 20 / share. The beginning of 2021 was an example of an incredible bull market in the space industry segment. The media and partly also retail investors supported this growth, which drove the share price to 60 USD / share.
Fortunately (for new potential investors) the price at the end of February 2021 fell to below 30 USD / share. This is great news for me and that is why this detailed report by Virgin Galactic, SPCE shares, is published.
I invest in US shares (including SPCE shares) through the DEGIRO broker. I like the clear platform, very low fees and the Czech environment.
Investing involves the risk of losses. Only invest money that you can afford to lose. Invest carefully. The article and all information are for educational purposes and are not investment recommendations.
Report Virgin Galactic, akcie SPCE
In this report, I want to share my own view of Virgin Galactic and its shares in SPCE. I have them in priority tracking and I can reveal that I want to invest in the company, ideally before May 2021. I write the reasons below.
This is an extensive report that gives investors and potential applicants a closer look at the company’s history, their successes and failures.
While media articles focus on certain events, in this report I wanted to summarize the most important things to know about Virgin Galactic.
I know very well from my own experience that we can easily overlook the context and turn our attention to the news hot news. We let the current emotions work, which obscures our investor thinking and perception of the whole.
This report aims to help see Virgin Galactic in all its beauty and ugliness with their ambitious plans and implementation failures. I will discuss and reflect on the reasons, ask unanswered questions and also share my own opinion on a possible investment in Virgin Galactic shares.
These are not investment recommendations. All information is for educational purposes only.
Historie Virgin Galactic
Year after year, let’s go through the history of Virgin Galactic, a company that was founded in 2004, but the biggest visible milestones do not come until several years later. As you will find, everything takes a really long time, the signed agreements do not yet indicate immediate cooperation, the development is calculated for years if not for decades. And delays are a natural part of such ambitious plans as space tourism.
Year 2004: Establishment of Virgin Galactic
Richard Branson founds Virgin Galactic as part of Virgin Group’s business.
Year 2005: Production of the space shuttle
The Spaceship Company is formed, which will manufacture spacecraft and space shuttles. The company owns 70% of the Virgin Group and 30% of the Scaled Composites (founder of Burt Rutan, who won the Ansari X Price with SpaceShipOne).
Virgin Group is a Richard Branson company founded in 1989, which covers all of its business activities (Virgin Airlines, Virgin Trains, Virgin Hotels, Virgin Mobile,…).
There is an order from Virgin Galactic for 5 pieces of SpaceShipTwo and 2 pieces of WhiteKnightTwo.
Year 2007: First (un) successful and tragic steps
The shuttle is still not finished.
A tragic accident where 3 workers died while testing an engine. Virgin Galactic was very brave about this tragedy, but it still had a very negative media impact.
Established first cooperation with NASA, resp. signed memorandum with NASA to initiate future cooperation. The result did not come until 2011, when Virgin Galactic won its first small contract for $ 4.5 million.
Year 2008: Vision Communication
Richard Branson’s first predictions and public statements that he will fly into space within 2 years.
Year 2009: Investments and plans
Virgin Galactic have no money, they are looking for investors, they are negotiating with investors from Abu Dhabi, where they could build me a spaceport.
Year 2010: Development and strategy
Virgin Galactic completed the construction of the shuttle in March 2010.
At the end of 2010, Richard Branson will appoint a new CEO to Virgin Galactic. Simply put, what happened at Virgin Galactic before was marketing. From now on, Virgin Galactic can be considered a company that can build, build, innovate and has the right conditions to fulfill its vision.
In New Mexico, USA, Virgin agreed with the government to build a spaceport with government money and Virgin would rent it. This was agreed by the new CEO, because he has contacts in the government and the space industry
