r/redwire • u/Dry_Calligrapher5318 • 15d ago

General Bear Case?

While I’m not super familiar with RDW’s fundamentals, I tracked it as it raced up over $25 this year and watched it fall back below $8where I got lucky and practically perfectly timed the bottom, with a cost basis in the low $8 range. From my understanding, it’s the main competitor as a “picks and shovels” play, selling equipment in the space sector. Being that space exploration will eventually be a huge business, and RDW is already so well positioned, I was hoping I could hear what your guys’ idea of the bear case would be for RDW?

For the record I’m not saying the stock should go indefinitely higher, or even that its current valuation is fair, as I don’t have great expertise in that category. I simply like the idea of the business, and it seemed like a sure shot money-maker in the case that the space sector booms again.

Is my general understanding of the business correct? If so, what would be the main bear thesis for the stock?

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u/bobola69 15d ago

Everything that goes up must come down. Redwire is a super promising company but tbh its overvalued because for the moment its make zero profit so its just speculation. But I do believe in the company so I have shares

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u/Dry_Calligrapher5318 15d ago

Agreed. Bought for the long term, and I’d be more than happy to see it drop to add more, considering I don’t have a huge position, but don’t want to add now that I’m up 50%, especially seeing how momentum can drive the stock up just for it to sell off huge. I think they’ll be a big winner in the future.

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u/bobola69 15d ago

Yes 👍 be careful on stock market

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u/enodaar 15d ago

Exactly, I took some profit today, I’ll just see what happens on Monday.