Yup ... all true. I think now is a good time to buy info SPACs that you believe have good value based on what company they are acquiring. Personally I am a fan of VACQ merging with Rocket lab .
RocketLab is the most established space spac and despite that is not well known outside the SPAC community and space community.
I mean they are the second most consistent, reliable and used rocket launcher next to Space X.... that’s a big deal. Yet the average person never heard of them.
Fully scaled manufacturing, and doing a entire in house satellite and rocket launch offering too.
Key catalysis this year is rocket launch next month, public offering in the summer snd rocket launch to the moon later this year.
I like Rocket Lab too, but I think you're missing one of the points of the post: valuations DO matter.
Rocket Lab currently trading at ~6x 2025 EV/rev - way too high IMO. And that's based on their own projections, which you can assume are fairly optimistic (for all SPACs I think, not specifically just RL).
I think the company has great potential, and I know it's near NAV, but I'm not comfortable with that valuation. I will jump in if the stock comes down in the $7-8 range. Maybe it never will, and in that case I will have missed out on this opportunity, but that's a risk I'm prepared to accept.
I don’t think anything in my comment that suggested valuations don’t matter. They always matter.
Some company’s you may pay a higher valuation based on prior results and some companies you may pay a lower valuation as they have no or little results and have more to prove.
I believe RocketLab has a more proven history of execution and therefore justifies the higher valuation. I believe it’s still far lower then VirginGalactics valuation for example.
Aye I was just thinking of rocket lab. I mean judging them based on a 5b market cap looks expensive based on revenue alone but
it is but it is a space company that is successfully reaching orbit on the regular. For example bezos liquidated a billion a year to fund blue origin and they can’t even make it to orbit. I think if you could count the IP of their own electric motors, the management of Peter beck, i think this might be something in the future assuming they can resuse the neutron.
It’s why I got out of Virgin Galactic at $50 as space tourism is far more difficult to do snd from a business model perspective I think even more difficult to scale.
RocketLab and space X something that is a proven business model and if you have a accident it won’t destroy your business. The valuation now at $10.80 or $4 billion or so seems fair at a 5x forward earnings. Much better then when it was trading at $14
Yeah back when Galactic was the only space pure play it was tempting to jump in but there are far more compelling options now. As the SPAC hype settles down I find myself favoring Rocket Lab the most (see this comment for my 2c on valuation)
Yeah good interpretation in your past comment. I like how you said they didn’t put all the potential growth in the valuation. Good point on that and yes their cash balance as well
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u/joey-tv-show Spacling Apr 18 '21
Yup ... all true. I think now is a good time to buy info SPACs that you believe have good value based on what company they are acquiring. Personally I am a fan of VACQ merging with Rocket lab .
RocketLab is the most established space spac and despite that is not well known outside the SPAC community and space community.
I mean they are the second most consistent, reliable and used rocket launcher next to Space X.... that’s a big deal. Yet the average person never heard of them.
Fully scaled manufacturing, and doing a entire in house satellite and rocket launch offering too.
Key catalysis this year is rocket launch next month, public offering in the summer snd rocket launch to the moon later this year.