Jan 23rd 2023 Free Analysis - Virgin Galactic

Hey Investors!

I want to start by saying thank you for all your feedback. It means the world to us. We aim to continue improving this newsletter in order to deliver the most value we can. All while maintaining our mission of keeping things simple. That said, today’s mover is one of my favorites so you’ll have to excuse some of the bad puns throughout the analysis. Let’s jump right in:

THIS WEEKS MOVERS SNAPSHOT

VIRGIN GALACTIC (Stock Ticker: SPCE) - He’s British, he was knighted by the late queen of England, he has something for air travel, oh and he’s pulled some pretty crazy stunts over the years. Ringing any bells? Sir Richard Branson of course. To say that I’m a fan is an understatement, but coming back down to earth for a minute 😉. Sir Richard may have founded today’s company, but he has little to do with the day to day running of it.

So let’s take look at what Virgin Galactic actually does. Virgin Galactic develops space vehicles and is building a commercial space tourism service. Though there are other companies doing the same thing, Virgin Galactic is the largest one on the stock market (AKA publicly traded).

There are 3 main companies competing in this space 😉 , Virgin Galactic (Richard Branson’s), Blue Origin (Jeff Bezos’) and SpaceX (Elon Musk’s). They’re each expected to start taking people into space this year. Would you go?

Why SPCE?

The space travel market is expected to increase by 506% by 2031. That means a lot of money will be flowing into space travel. With Virgin Galactic leading the pack so far, this could be an interesting opportunity.

Why we feel there’s a buying opportunity:

1. FLIGHT TESTS. The company said that after the ground tests are complete, they will start another round of flight tests. They have done several flight tests in past years. The most exciting one was when Richard Branson himself was flown into space in 2021. This means they could be getting closer to actually hitting the 2023 goal of flying everyday people to space. Or as they call them, “space tourists.” That could also mean good news for the stock price.   

2. After the successful flight with Richard Branson on board, the company seemed to go silent. Not much news was coming out about what was next and as a result the stock dropped 96% 🤯 from $62.33 in January of 2021 to $2.80 in December of 2022. And now it’s around $5. This means that the stock could “take off” 😉 at the same time that the flights do.

TERMS YOU NEED TO KNOW

Asset Allocation - How you split your money between cash in the bank, and different investments types. The goal is to find the balance between the amount of risk you’re ok with and the money you hope to make.

Let’s talk investment risk:

No matter what anyone tells you, every investment comes with risk. Even keeping your money in the bank comes with risk. The risk isn’t very high for keeping your money in the bank, but there’s still a risk. Believe it or not, there’s even a risk for keeping cash. You could have it stolen or in 5 years it could be worth less than it’s worth now because of inflation. So it’s important to understand the different levels of risks that come with investing of all kinds. We would not recommend investing in individual stocks as a retirement plan. If you’re interested in investing in stocks for other reasons, the analysis we give you could help. But we have to be clear, these are NOT recommendations, this is analysis. We give you the analysis similar to what pros get and you decide what to do with it. Our mission is to put the same information that the pros get, into the hands of everyday investors like you in a way that is easy to understand.

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See you on Thursday!Thibaud & PhilipFun fact about us: We love talking investments even when we're not working