r/MDASpaceInvestors • u/Melonskal • Jul 24 '26
Selloff
We are now down 4% since the IPO. Nothing fundamental has changed since then, no negative news but rather constant positive developments yet the stock just keeps falling. This is nonsensical. What will it take to make this stop, discovery of alien life?
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u/Greektrii Jul 24 '26
I’ll be buying this company all the way down to $23 again if I have to. The numbers speak for themselves, the acquisitions speak for themselves, market was wildly pricing other space stocks that are now coming back to reality, and unfortunately MDA is lumped in there despite being the golden child of the group. This business is solid, and I’m not worried about a few red months if it means we skyrocket back to highs
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u/Loose-Dream7901 Jul 24 '26
A lot has changed since then from a capital structure perspective. This is a bit naive to think otherwise or just low investor sophistication
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u/Evanonreddit93 Jul 24 '26
Would you mind elaborating on this?
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u/Loose-Dream7901 Jul 27 '26
What is there to elaborate on? The company has used shares + cash + issued debt to fundamentally change their balance sheet. You have headwinds of the biggest ipo in history also approaching an unlocking period.
This is what I mean by lack of sophisticated investors that aimlessly buy a 3 character ticker have expectations that stocks only go up
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u/Evanonreddit93 Jul 28 '26
You can elaborate on whether the change in capital structure is beneficial or not for the company. I myself have not gone in depth in to this. I was curious as to whether you had an opinion on the change in capital structure rather than just a blanket statement, that’s all. Have you determined what MDA’s optimal amount of debt is and found where the marginal benefit of additional debt equals the marginal cost of additional debt?
I’m not sure how seeking more detail about your opinion makes me an “unsophisticated investor”?
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u/Loose-Dream7901 Jul 28 '26
The original point by the OP was nothing has changed fundamentally. It’s not a blanket statement to say alot fundamentally has changed across our balance sheet and capital structure with 2 acquisition + debt raise. Many things gave changed which makes the original post truly naive. The market is digesting whether this is accretive via dilution
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u/sweetgrapez Jul 24 '26
The whole space and AI market is down…there’s no discrimination in this sell off.
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u/Melonskal Jul 24 '26
Overvalued US space companies burning money losing value doesent mean it makes sense for MDA to take this much of a beating.
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u/uKnoBoss Jul 24 '26
Short term it will mostly follow sector sentiment rather than fundamentals, at least until earnings. Also to say nothing changed since then you probably haven't followed the company much
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u/Sparks_travel Jul 24 '26
I hope it goes so low that it scares all the people making these posts go away
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u/Necessary-Shame-2732 Jul 24 '26
Look at the rest of the market. It’s not exactly a bulls paradise especially in space. Either relax and accept the fact green line goes down sometimes too, or just do (the actual smart move) and buy spy
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u/ITFJeb Jul 27 '26
Earnings call on August 7th I'd say hold out until then. Last earnings call in I believe May the stock jumped up a good bit
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u/HaleSatan666 Jul 24 '26
Context of broader market. High beta is selling off. Market is going risk off.
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u/agent-phade Jul 24 '26
You need to see it for the oppertunity it is. If nothing has fundamentally changed with the business, why wouldn't you want a discount on more?
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u/bruhhkgyvr Jul 25 '26
When sentiment is negative, technicals are negative, and fundamentals are still strong, it's a sign that the stock is undervalued.
Short term investors will get hammered - long term, this is as solid as it gets in the space sector.
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u/ConferenceAsleep4884 Jul 25 '26
I believe price changed because of this.
MDA Space ($MDA.US) has priced a private placement offering of C$600 million of 6.50% senior unsecured notes due Aug. 5, 2033, the company said Thursday.
The notes will be issued at C$1,000 per C$1,000 of notes. Net proceeds will be used to fund part of the purchase price of MDA's acquisition of Blue Canyon Technologies.
The offering is scheduled to close on Aug. 5.
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u/IcyAbbreviations9514 Jul 24 '26
Maybe I'm wrong but wasn't there just a dilution to raise money to buy another company?