Redwire: Old Space SPAC On The Cheap

 

  • Redwire recently completed a SPAC deal and no surprisingly immediately traded below $10.
  • The company focuses on space infrastructure and expects to hit 2021 revenue of $163 million.
  • The stock trades at less than 2x 2022 revenue estimates making for a good starter position.
  • Looking for more investing ideas like this one? Get them exclusively at Out Fox The Street. Learn More »
The space sector has garnered a lot of attention lately with several launches of tourist flights along with Cathie Wood's ARK Invest launching a space ETF, ARK Space Exploration & Innovation (BATS:ARKX). A lot of the stocks are richly priced, but the completion of a SPAC deal and a legacy infrastructure pure play in the sector offers a solid deal for Redwire (NYSE:RDW) investors. My investment thesis is very Bullish on the ignored space tech play.

Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 


Update - Nov. 10

Management needs to do better. They need to provide a general outline for the delay in reporting earnings.

-Redwire (RDW -12.5%) shares drop as the space company that specializes in acquisitions announces that it will reschedule its Q3 earnings results. Redwire previously put out a press release on Nov. 4 saying that it would report Q3 results on Nov. 10 before the market opened.
-The fact that the company did not provide a reason for the delay is causing fear, uncertainty, and doubt among investors holding the stock.

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