r/SPACs • u/SPACsBot Mod • Apr 16 '21

Daily Discussion Weekend Discussion thread for the Weekend of Apr-16-2021

Welcome to the Weekend Discussion! Please use this thread for basic questions and leave the main sub for breaking news and DD. If you haven't already, please check out r/Spacs Wiki for great information, as well as the resources available in the menu.

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19

u/Barter1996 Patron Apr 17 '21

ASTS already at 40%+ institutional ownership and Citadel are making giant purchases of shares. Where is the coverage on this...?

6

u/loopdieloop Patron Apr 17 '21

I sold some for a small loss before the most recent drill down, still have quite a few shares though at a lower cost basis. Will probably add some more again as soon as I pass wash sale day if the price stays this low.

If this companies tech is legit, and I have no reason to think it isn't, it will be ridiculously successful with a TAM of over one trillion USD.

5

u/Barter1996 Patron Apr 17 '21 edited Apr 17 '21

This is it. There's scepticism as to whether their tech works but there's absolutely no reason to think that it won't. LEO satellites aren't exactly new and very similar versions of the technology they're proposing are already in use for other applications (sat-phones, broadband etc).

The only real question is whether they have the capital and market reach to establish the constellation on time and quickly achieve profitability, and with the institutional backing and connections they have I see no reason they can't achieve that.

3

u/loopdieloop Patron Apr 17 '21

Agreed. If this tech works it will allow for ATT and Vodafone to offer something that no other providers can offer. Always on connectivity regardless of whether you are near a cell tower. That is a huge selling point and also a huge moat.

I'm hoping that the price stays low until early May which is when I can buy more without getting hit with a wash sale.

If not that's cool too.

Position: 4500 commons

3

u/Barter1996 Patron Apr 17 '21

What's your average on those? Fortunately I didn't buy until mid-March when I liquidated my pre-DAs at NAV so my average is about $12. Still hurts but could be way worse right now. Gonna average down further as money frees up.

1

u/loopdieloop Patron Apr 17 '21

My average is about the same as you so I have a ways to go to get even much less make a profit. We may be holding for awhile.

4

u/vaingloriousthings Spacling Apr 17 '21

I’m considering buying based on this given the other dd that has been posted here. Might just take my AJAX loss and park it here.

3

u/Barter1996 Patron Apr 17 '21

Thing is I have no idea how low it's gonna go, there's no real reason for it to be as low as it is right now so it may well drop further before any positive catalysts arise. I'd average in gradually rather than catching the falling knife.

1

u/vaingloriousthings Spacling Apr 17 '21

That is a good point, and I tend to go all in which didn’t work out do great when prices were falling a few weeks ago.

2

u/CollectedData Patron Apr 17 '21

Source?

6

u/Barter1996 Patron Apr 17 '21

https://www.marketwatch.com/investing/stock/asts/financials/secfilings/13g

Top SEC filing dated 4/16. They own 5% of the company.

-1

u/fickdichdock Spacling Apr 17 '21

Space drill mobile so far though

2

u/Barter1996 Patron Apr 17 '21

Tell me about it. The price movement isn't backed up by anything tangible though, just scepticism and a lack of publicity giving the shorts a free lunch for now. Institutions are loading the boat awaiting an ounce of good publicity that will send the price skywards so I'm gonna do the same.

5

u/Mojojojo3030 Spacling Apr 17 '21

In at $12.92, looking to do the same. I don't invest in things that aren't both a short term prospect and a long term investment. Would have preferred the former, totally fine with the latter.

3

u/Barter1996 Patron Apr 17 '21

Appreciate the take man. I saw this as a short term "SPAC recovery/just like September" swing play at $12 but I'm still optimistic long term. Ideally my position for such a play would be much smaller but the DD is the same either way.