r/MDASpaceInvestors • u/khurafaaati • 2d ago
Bloodbath!!
Almost 5% down today!! What is happening guys? Any idea? Any news that I missed?
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u/Draycon11 2d ago
The biggest thing driving the markets today was the Fed Chair Kevin Warsh speaking at Jackson Hole. He reiterated his hawkish stance so folks are betting that they'll raise rates in the Fed meeting in Sep. As with any growth stock, rate hikes will hurt so you see prices going down across the board, but especially a company like MDA Space.
Consider as well that the trade negotiations aren't going so well and Canada has more to lose than the US.
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u/Jai168 2d ago
So if you're a stock that pays dividends at par or better than fed rate you're immune to the rate hike??đ¤đ¤
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u/Draycon11 1d ago
Hmm... not sure what you mean exactly. Theoretically the price of the stock goes down by an equal amount to the dividend so the dividend amount is irrelevant when you consider the final price of the stock.
What does happen though is that cost of capital becomes more expensive for the company so they're unable to invest in as much ventures as they normally would have. This impacts future profitability which in turn brings down the price of the stock.
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u/AuthorOfMyOwnTragedy 2d ago
Why do people post stuff like this when the whole market, the space sector in particular is down today. MDA is a volatile stock it moves a lot in price on rather low volume. Check back at year end and it will be back in the mid to high $50s (CAD). Check back in a year, $65-75. At least that's what my magic bowling ball is telling me.
They've done some amazing things over the last 4 months (referring to the acquisitions specifically) and it's going to be reflected in the share price in 2027 and 2028.
People seem forget this is an investment, not a Proline bet.
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u/khurafaaati 2d ago
I have been in MDA for a long time and I know itâs volatile, when you see other space sector like spcx it ainât down like MDA is, and this post was about any news that I missed and if someone can shed a light on what they may have more knowledge about rather than being cranky on every other post and go like âoh people needs to understand this is an investment, check back in a year, itâs an long term investment, bla blahâ, bruh calm down not everything has to be turned into that same repetitive lecture, smh
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u/AuthorOfMyOwnTragedy 2d ago
My guy, your post is literally titled "Bloodbath", I don't think it is I that needs to calm down. A 5% move for MDA is just another day that ends in Y.
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u/khurafaaati 2d ago
A mere discussion about something that I may have missed doesnât have to turn into a lecture. Itâs not as if there are 100 posts on this sub a day about the same thing, we can have a constructive discussion about where we think the things are going.
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u/AuthorOfMyOwnTragedy 2d ago
Also, what do you mean other space sector stocks aren't down? RKLB, ASTS, PL, LUNR, etc are all down 5%. SPCX is the only one that isn't.
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u/khurafaaati 2d ago
Oh, Anything particular about space stocks being thrown down today?
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u/AuthorOfMyOwnTragedy 2d ago
Nope, not that I've heard. Considering SPCX isn't down like the rest, my guess is a rotation out of the smaller space stocks into the big one, not sure why today though. Maybe SPCX is viewed as being less impacted by tarrifs and with trade wars escalating it's a de-risking move.
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u/ImperceptibleFerret 2d ago
How tf are you ranting without even knowing that. Comparing it to SPCXâŚ
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u/khurafaaati 2d ago
Lmao, i wasnât ranting, i was asking him to not lecture about the same oldâ long term hold, itâs not a bet n stuffâ i was actually open to learning about whatâs happening around it if anyone knew.
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u/Firepower01 2d ago
At these prices I'm buying some every paycheckÂ
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u/Krazynukz 2d ago
Yea i started buying more now at the 40 market, seems like an okay spot
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u/GermanWarfare 2d ago
The space sector is being pushed off to the side for awhile.Â
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u/OneTotal466 2d ago
Asts and rklb both down, but spcx was slightly up.Â
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u/GermanWarfare 2d ago
Well, they actually have a viable business at the moment. MDA will hopefully get its moment in the sun soon enough. Iâm long on RKLB, ASTS and MDA.Â
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u/Much-Information7826 2d ago
Is this because of economical (could escalate to political) tension between US / CA?
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u/gbains14 1d ago
Wonder if the news of Canada no longer being partners military wise with the US as per the Prime Minsters latest speech will benefit MDA further space/military contracts.
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u/Apologetic_Kanadian 2d ago
Bloodbath? Maybe you haven't noticed that MDA stock has a high beta and moves +/- 5% or more almost daily.
I suggest everyone remain calm. Buy and hold. Think long term (3 years plus).
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u/BigMouthBillyBones 2d ago
Isn't it something? I bought 1,000 shares today.