15.29 +0.02 (0.13%)
After hours: 4:48PM EDT
|Bid||15.20 x 2900|
|Ask||15.27 x 1300|
|Day's Range||14.92 - 16.39|
|52 Week Range||6.90 - 42.49|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Earnings Date||May 04, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||29.67|
Jeff Bezos’ rocket company Blue Origin is 3D printing plastic parts needed to make face shields to help fight the coronavirus pandemic. Yahoo Finance’s Dan Howley joins Seana Smith to break down the latest details.
Yahoo Finance's Ines Ferre looks at how African-Americans helped propel the U.S. in the race to space.
Coronavirus is probably the 1 concern in investors' minds right now. It should be. On February 27th we published an article with the title Recession is Imminent: We Need A Travel Ban NOW. We predicted that a US recession is imminent and US stocks will go down by at least 20% in the next 3-6 […]
By now, both professional explorers and thrill-seeking adventurers have covered much of the world. Even considering the vast depths of the ocean, the well heeled can buy a ride in a submersible. The only remaining frontier where most of humanity has not surveyed is space. However, Virgin Galactic (NYSE:SPCE) would like to change that narrative. As a pure space play, SPCE stock intrigues but oh, is the timing ever so awful!Source: Tun Pichitanon / Shutterstock.com Up until Feb. 19, SPCE stock was aptly named -- it launched so strongly, you'd have thought the initial public offering occurred in Cape Canaveral. Shortly thereafter, global coronavirus cases worsened significantly. After it became apparent that the U.S. would also suffer badly from the rapid spread of Covid-19, Virgin Galactic shares plummeted back down toward earth.While SPCE stock has picked up some momentum after its March 19 low, it faces a new crisis -- an economic one. Two weeks ago, a record 3.3 million Americans filed for unemployment benefits. Last week, a staggering 6.6 million made jobless claims.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn this situation, no one is thinking about traveling to space. Heck, no one is thinking about traveling anywhere.Two points stood out to me. First, Bank of America had one of the highest jobless claim estimates at 5.5 million. Just that alone was enough to send shivers down economists' spines. Second, the real tally could be far worse. * 7 Stocks to Sell That Need a Quick End to the Stay-at-Home Orders With millions of desperate Americans filing their claims, individual states' communication networks have simply melted down. Obviously, we're facing some trying times in the nearer term. Therefore, you wouldn't want to buy Virgin Galactic right now.But ignore it altogether? That's where my contrarian side kicks in. SPCE Stock Isn't as Crazy as You ThinkIn my note to investors, I shared some thoughts that I hope will bring some much-needed perspective here. I wrote:There's a lot we don't know, but I do know this country and our world have dealt with pandemics in the past, and we've recovered every single time. We've dealt with other crises… and recovered every single time.Furthermore, I've often talked about the Roaring 2020s. Obviously, with the extreme volatility in the markets, we've concentrated our efforts toward protective measures. But don't think that I've abandoned this thesis, because I haven't. When we finally get out of this mess, Americans will get back to riding the record-breaking bull market.Even for speculative names like SPCE stock, the broader narrative is surprisingly robust. In October 2019, Virgin Galactic CEO George Whitesides told CNBC that, "More people are going to want to go to space" than either Virgin Galactic or Jeff Bezos' rival company Blue Origin "can bring in terms of service."Moreover, Whitesides added that he anticipates a market of two million space tourists. That's a bold figure considering that tickets are priced at $250,000 a pop.However, it's not unreasonable. In recent years, the number of millionaires in the U.S. has boomed. Better yet, these figures don't just include people sitting on old, immobile money. Instead, many Americans routinely make adjusted gross income of $200,000 or more. For instance, 1.43 million Americans earned an income of $515,000. Nearly 7.2 million earned $208,000.Conceivably, these folks could save up for what would truly be an adventure of a lifetime. And don't forget that millennials love vacations. As the older cohorts age into their 40s and 50s, we can expect the higher-income earners within this demographic to consider space travel. Technical Momentum Should Count for SomethingWhile there will always be vocal critics of SPCE stock, we shouldn't ignore its earlier technical momentum. Between the closes of Jan. 2 and Feb. 19, shares more than tripled.At the time, the coronavirus was a foreign problem. Both the markets and the economy were on a roll. Anybody who wanted a job -- especially if they were decently skilled -- could get one. Now, the situation is almost the exact opposite.Nevertheless, when society was in the "old normal," many investors were willing to gamble on SPCE stock. That tells me that without the coronavirus, we could be seeing a much different story.For now, be smart. There's no need to play a hero in this speculative bet. But once the clouds clear, you'll want to consider Virgin Galactic, especially since it aligns perfectly with demographic trends.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. More From InvestorPlace * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * This Stock Picker's Latest Video Just Went Viral * The 1 Stock All Retirees Must Own The post With Virgin Galactic Stock, No One Can Hear You Scream appeared first on InvestorPlace.
Virgin Galactic Holdings, Inc. (NYSE: SPCE) ("VG" or "the Company"), a vertically integrated aerospace company, today announced that it will report its financial results for the first quarter 2020 following the close of the U.S. markets on Tuesday, May 5, 2020. VG will host a conference call to discuss the results that day at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time).
IPO Edge Reviewed Memo from B. Riley Financial Inc.'s SPAC Desk Several SPACs trade with 3% Yield to Maturity or Greater Forced Selling Likely Pushed Prices to Levels Reminiscent of 2008 Crisis Investors Have Full Right to Redeem for Cash Plus Interest if SPACs Held Until Liquidation SPACs Also Offer Dramatic Upside if M&A […]
Morgan Stanley’s Adam Jonas upgraded the stock Tuesday to the equivalent of Buy—but cut his target price for shares to$24 from $30.
Shares of Virgin Galactic Holdings Inc. are up 20% in premarket trading Tuesday after Morgan Stanley analyst Adam Jonas upgraded the stock to overweight from equal weight while lowering his price target to $24 from $30. "Despite the modest adjustments to our space tourism [discounted cash-flow model], the company maintains a healthy cash position (~$500 million) and its expected ~$16 million per month cash burn...position it well to navigate any near-term headwinds," he wrote. Virgin Galactic's shares have plunged 62% over the past month but Jonas said that the "story and the balance sheet remain intact." The stock's slide compares with a 31% decline for the S&P 500 over a one-month span.
At a time when much of the world is on lockdown and the U.S. economy is likely in recession, most investors aren't interested in buying the stocks of companies with unproven business models and very little revenue. Since Virgin Galactic (NYSE:SPCE) definitely has those characteristics, and the company's longer-term outlook is extremely uncertain, investors should avoid SPCE stock at this point.Source: Christopher Penler / Shutterstock.com Meanwhile, my belief that most investors won't be interested in a highly speculative stock like Virgin Galactic during an extremely turbulent time has been validated by the recent performance of SPCE stock.The company's shares have tumbled a huge 72% from their February highs.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Unproven Business Model Weighs on SPCE StockVirgin Galactic is a "space tourism" company. In other words, it will take consumers more than 50 miles above the Earth in a spaceship in exchange for a $250,000 fee. So far, the company has launched one test flight, in December 2018. * 10 of the Best Long-Term Stocks to Buy in a Bear Market During its fourth-quarter conference call, the company reported that it had "over 600 reservations and approximately $80 million in deposits, representing over $120 million of potential revenue."Virgin Galactic added that it had 7,957 registrations of interest as of Feb. 23.Since the company's business and business model are completely new, there are many unknowns. Despite the deposits and registrations, it's hard to know how many wealthy people will actually go through with paying $250,000 for a 90-minute ride.And it's also difficult to determine whether Virgin Galactic will ever be profitable. Its insurance costs alone will be astronomical, no pun intended. And finally, it's impossible to know whether a fatal accident will destroy the company's business. I'll go into greater depth on that later. Potential Side Business May Not WorkVirgin Galactic is also working on a side business. It says there are "huge opportunities" to use advanced technologies to transport people much more quickly than conventional airplanes between distant points on earth. Virgin Galactic reported that "a hypersonic vehicle" could reduce the travel time between Los Angeles and Tokyo by nine hours.But it doesn't sound like Virgin Galactic has made much progress on the project. Moreover, like the space business, the high-speed transport business is plagued with uncertainties. It's difficult to know if there will be much demand for high-speed travel, which will likely be very expensive.It's also impossible to determine if the company could make such an endeavor profitable.I do, however, remember that the Concorde, a supersonic plane which made transatlantic flights in 3.5 hours, was ditched by many airlines before ultimately completely disappearing. That certainly doesn't bode well for Virgin Galactic's idea. One Fatal Accident Could Derail the Whole CompanyI know very little about space travel, but I do know that, since 1986, two of NASA's space shuttles have had fatal accidents.In 1986, the Challenger disintegrated shortly after launching, killing everyone aboard and in 2003, the Columbia disintegrated after reentering the Earth's atmosphere.Evidently, space travel is an extremely difficult and dangerous enterprise. If one of Virgin Galactic's spaceships blow up, killing everyone aboard, the company's whole space tourism business will probably have to fold. The Bottom Line on SPCE StockMany wealthy individuals could find the idea of traveling in space intriguing. But I don't know how many of them will pay $250,000 for a 90-minute trip, and I certainly don't know if Virgin Galactic will ever be able to turn a profit.Finally, in the shorter term, the stock doesn't seem like the type of name that investors will look to buy during a crisis or even in the immediate aftermath of a crisis.As of this writing, Larry Ramer did not own shares of any of the aforementioned companies. Larry Ramer has conducted research and written articles on U.S. stocks for 13 years. He has been employed by The Fly and Israel's largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been GE, solar stocks, and Snap. You can reach him on StockTwits at @larryramer. More From InvestorPlace * America's Richest ZIP Code Holds Wealth Gap Secret * 10 of the Best Long-Term Stocks to Buy in a Bear Market * 7 "Perfect 10" Healthcare Stocks to Buy Now * Where the FANG Stocks Sit in This Wild Market The post Don't Hitch a Ride With Virgin Galactic Stock appeared first on InvestorPlace.
Year-to-date, Virgin Galactic (NYSE:SPCE) stock is up about 9%, but that number tells only half the story of the spaceflight company's shares. On Feb. 20, SPCE stock hit an all-time high of $42.49. Since then it has been in a freefall. It now hovers around $12, a decline of about 70%.Source: Christopher Penler / Shutterstock.com In January, hardly anyone could have foreseen a global pandemic affecting not only daily lives around the world but also broader markets, and now it is not quite possible to know what the full extent of the current selling may be, given the current reality surrounding the COVID-19 pandemic, investors' confidence has left the marketplace.It's hard to see much positive momentum returning to SPCE stock, or to other speculative and richly valued companies, in the weeks to come. However, investors with a long-term horizon whose portfolios can also weather further volatility may consider buying into the shares of this exciting venture.InvestorPlace - Stock Market News, Stock Advice & Trading Tips SPCE Stock Investors Participate in a Space StartupVirgin Galactic defines itself as "the world's first commercial spaceline and vertically integrated aerospace company." Many investors know is as the first space tourism company. SPCE is part of Sir Richard Branson's Virgin Group. He had previously founded Virgin Atlantic Airways which itself is owned in part by Delta Air Lines (NYSE:DAL). * 10 of the Best Long-Term Stocks to Buy in a Bear Market The company went public via a reverse merger on Oct. 28, 2019 at an opening price of $12.34. In other words, the SPCE share price is currently approximately back at that initial level.Recent academic research co-authored by Steven Muegge of Carleton University and Ewan Reid of Mission Control Space Services highlight that we are witnessing a "paradigm shift" in the space industry.They conclude that "once the exclusive domain of government, military contractors, and incumbent aerospace companies, space is increasingly accessible to new entrants founded by ambitious, well-resourced, and well-connected entrepreneurs from outside the traditional industry."Going forward, SPCE management plans to run "a regular schedule of spaceflights for private individuals and researchers" from its operational hub and "spaceport" in New Mexico (NM). As of late February, its total number of staff in NM was 145.Within this new decade, space tourism could become a market of $3 billion. And by default, the prospects for SPCE stock could be risky, yet exciting and rewarding. Virgin Galactic Has Little RevenueOn Feb. 25, the group released its financial results for the fourth quarter and full year ended Dec. 31, 2019. It was the first quarterly report as a public company.In Q4, its revenue was $529,000. On the other hand, net loss came at $73 million. So we cannot talk about profits at this point. The group also had cash and cash equivalents of $480 million as of Dec. 31.Its reusable suborbital vehicles are designed to reach "space altitudes on frequent, affordable, and safe suborbital voyages." Each spaceshift will have two pilots. Virgin Galactic plans to carry upto six passengers in its spacecraft at a time. The price tag would be $250,000 per person. As of Feb. 23, it had received 7,957 registrations of interest in flight reservations.These passengers, or "Future Astronauts," will also be required to take a pre-flight training program on-site in New Mexico. "Pre-flight training will ensure that each astronaut is mentally and physically prepared to savour every second of the spaceflight and fully equipped to fulfil any personal objectives."CEO George Whitesides was pleased with the progress made in 2019. He also emphasized the high level of interest from potential customers.At the time of the quarterly release, Virgin Galactic was aiming for completing the world's first commercial spacecraft into suborbital space in 2020. Now, it does not look so clear-cut. Many countries have closed down national borders. In addition, many cities and nations are operating under states of emergency.Thus it'd be highly difficult to assume that passengers would be able to attend a pre-flight training or travel to space for fun in the coming months. Investor Takeaway on SPCE StockThe past month has been one to forget for many investors. Travel and tourism companies have been hit especially hard. It will be a while before anyone is going anywhere far away from their homes. And going into space for pleasure is likely to be out of the question. Thus Virgin Galactic's space tourism timetable looks questionable at this point. As I write, global sports events are being pushed back a year or so. I'd also expect delay of at least several months or even a year for the first flight into space.Therefore, it may be some time before the SPCE share price stabilizes and finds a bottom. In other words, I do not expect it to go back to the February highs any time soon.However, if you're ready to buy into the "space story" and are happy to wait several years, then SPCE stock may be appropriate for your portfolio and you may consider buying the dips.Tezcan Gecgil has worked in investment management for over two decades in the U.S. and U.K. In addition to formal higher education in the field, she has also completed all 3 levels of the Chartered Market Technician (CMT) examination. Her passion is for options trading based on technical analysis of fundamentally strong companies. She especially enjoys setting up weekly covered calls for income generation. As of this writing, she did not hold a position in any of the aforementioned securities. More From InvestorPlace * America's Richest ZIP Code Holds Wealth Gap Secret * 10 of the Best Long-Term Stocks to Buy in a Bear Market * 7 "Perfect 10" Healthcare Stocks to Buy Now * Where the FANG Stocks Sit in This Wild Market The post After a 70% Fall, SPCE Stock Could Be a Buy for the Long-Term Investor appeared first on InvestorPlace.
Virgin Galactic Holdings, Inc. (NYSE: SPCE; SPCE.WS; SPCE.U) ("Virgin Galactic" or "the Company"), a vertically integrated aerospace company, today announced that the Company will redeem all of its outstanding warrants (the "Public Warrants") to purchase shares of the Company’s common stock, par value $0.0001 per share (the "Common Stock"), that were issued under the Warrant Agreement , dated September 13, 2017 (the "Warrant Agreement"), by and between the Company and Continental Stock Transfer & Trust Company, as warrant agent (the "Warrant Agent"), as part of the units sold in the Company’s initial public offering (the "IPO"), for a redemption price of $0.01 per Public Warrant (the "Redemption Price"), that remain outstanding at 5:00 p.m. New York City time on April 13, 2020 (the "Redemption Date"). Warrants to purchase Common Stock that were issued under the Warrant Agreement in a private placement simultaneously with the IPO and still held by the initial holders thereof or their permitted transferees are not subject to this redemption.
Not many investors are familiar with special purpose acquisition companies (SPACs), a special breed of IPO stocks that enable well-connected sponsors to raise hundreds of millions of dollars from the public markets.Often referred to as blank-check companies or blind pools, the sponsors have 24 months from the day the IPO funds are raised to acquire an operating business. That business is then combined with the SPAC through a reverse merger, turning the private company into a public one.SPACs first came into being in the 1980s, used by penny-stock promoters, to make millions off unsuspecting investors. As a result, the federal government introduced the Penny Stock Reform Act of 1990, which took steps to stop these fraudulent activities.InvestorPlace - Stock Market News, Stock Advice & Trading TipsLater in the decade, financier David Nussbaum reintroduced SPACs, focusing on legitimizing this form of IPO stocks through the use of specific requirements such as putting the funds raised in escrow and putting a time limit on the amount of time to make a qualifying acquisition.The other day I wrote about "10 Ways to Diversify Your Portfolio at This Time of Crisis." Although I mentioned several different options to help lessen the blow to your investment portfolio at this challenging time, one option I didn't bring up was SPACs.Back in 2007, SPACs gained popularity with hedge funds as a way to protect their capital against downside threats, while generating a good yield and providing potential upside should an acquisition get completed within the 24 months.In 2019, there were 59 SPAC IPOs that collectively raised $13.6 billion. As the bull run looks to be coming to an end, I suspect the SPAC hedge is going to come back into fashion. * 7 Stocks to Sell as We Enter a Bear Market If so, here are 10 SPAC IPO stocks to buy now. Five have recently completed or found a target company, while five have yet to find an acquisition. IPO Stocks: Virgin Galactic (SPCE)Source: Christopher Penler / Shutterstock.com As far as SPACs go, the merger between Social Capital Hedosophia, which raised $600 million in September 2017 for its first of three SPACs, and Richard Branson's space travel company, Virgin Galactic (NYSE:SPCE), is as a big deal. The merger was first announced in July 2019. The combination created a company with an enterprise value of $1.5 billion. Branson's Virgin Group owns 58.7% of the business with Social Capital's shareholders owning the rest. Recently, I suggested that Virgin Galactic could be the next Tesla (NASDAQ:TSLA). Although it plans to develop a large space tourism business, the commercial applications of space flight are tremendous. The company expects its first space flight to happen later this year. With 8,000 people signed up ready to spend $250,000 to go into space, and many more to come out of the woodwork once a successful flight is in the books, the future revenue potential is tremendous. However, this is not a stock for those who can't see the long-term picture; risks will remain high for several years. Act II Global Acquisition / Merisant / Whole Earth (ACTT)Source: Shutterstock On Dec. 20, 2019, Act II Global Acquisition Corp. (NASDAQ:ACTT) announced that it was combining with Merisant Company and MAFCO Worldwide LLC. Both are currently owned by MacAndrews & Forbes, the holding company of billionaire Ronald O. Perelman. Merisant specializes in zero and low-calorie sugar substitutes, while MAFCO is the world's leading maker of natural licorice products. The two businesses and Act II will operate under the name Whole Earth Brands, which includes the Whole Earth brand of sweeteners.The chairman of Whole Earth Brands is Irwin Simon, the current CEO of Aphria (NYSE:APHA), a Canadian cannabis company. Before Aphria, Simon co-founded and was CEO of Hain Celestial Group (NASDAQ:HAIN), one of the world's largest natural and organic foods company. Once trading on Nasdaq, Whole Earth Brands will have an enterprise value of $575 million, 8.1 times 2020 pro forma EBITDA of $71 million. Simon and CEO Albert Manzone plan to use the company's stable free cash flow to grow its business organically and through acquisitions. * 7 Stocks to Sell as We Enter a Bear Market Simon's involvement makes this an exciting company to watch. Repay Holdings (RPAY)Source: Shutterstock Repay Holdings (NASDAQ:RPAY) announced in January 2019 that it was merging with Thunder Bridge Acquisition Ltd., a SPAC that raised $225 million ($25 million higher than initially proposed) in June 2018. Repay operates a proprietary, integrated payment technology platform that reduces improves the customer experience while simplifying the process for merchants. The management team, including co-founder and CEO, John Morris, stayed on to run the company. In 2018, Repay processed approximately $7 billion of payment volume for personal loans, car loans, and receivables management. Thunder Bridge paid $581 million for Repay. It is led by Gary Simanson, who previously founded Endeavor Capital Management, a New York-based boutique private equity firm. In August of last year, Simanson raised $300 million for Thunder Bridge Acquisition II Ltd. (NASDAQ:THBR), a SPAC geared to finding another fintech acquisition. Diamond Eagle Acquisition / DraftKings / SBTech (DEAC)Source: Shutterstock In late December, Diamond Eagle Acquisition Corp. (NASDAQ:DEAC) announced it would combine with DraftKings and SBTech, to form a $3.3 billion vertically integrated sports betting and online gaming company. Once the combination is complete sometime in the first half of 2020, it will operate as DraftKings, and trade under a new stock symbol. The three-way merger comes more than two years after DraftKings and FanDuel canceled their merger over concerns from the Federal Trade Commission. For those needing a program to tell who's who, Diamond Eagle Acquisition is the fifth SPAC for Hollywood executives Harry Sloan and Jeff Sagansky. This particular version raised $400 million in May 2019. Since 2011, the five SPACs have raised a total of $1.7 billion. If anyone can make this work, it's these two guys. If you bet on sports, you've probably heard DraftKings. I've yet to see anything come up due to the coronavirus, but I would guess it might postpone when the deal gets done. DraftKings just announced their annual results -- it generated $323 million in sales in 2019, 43% higher than a year earlier -- and while they were good, if there aren't any professional sports teams playing, there wouldn't be anything to bet on, severely reducing short-term revenues. As for SBTech, it provides its clients with betting and gaming solutions, which is why this unusual three-way combination makes sense. * 7 Stocks to Sell as We Enter a Bear Market Like all SPAC acquisitions, Diamond Eagle's shareholders have to vote in favor of the transaction for it to go ahead. With the coronavirus beginning to take a toll on U.S. sporting events, it's suddenly not a sure thing. Leisure Acquisition / Gateway Casinos & Entertainment (LACQ)Source: Michał Parzuchowski via UnsplashAlso in the world of betting, Leisure Acquisition Corp. (NASDAQ:LACQ) announced on December 27, 2019, that it would combine with Gateway Casinos & Entertainment, a Canadian casino operation with 25 gaming and entertainment destinations, 12,800 slot machines, 365 table games, and 72 food and beverage outlets. Shareholders of the SPAC will receive one share of Gateway on a one-to-one basis. Any outstanding warrants to purchase shares of Leisure Acquisition will be converted to warrants to purchase Gateway stock at $11.50 a share. Gateway will be listed on the NYSE and trade under the symbol GTWY.Also, HG Vora Capital Management has agreed to buy 3 million units of Gateway for $10 per unit in a private placement. The cash from the private placement along with the money from Leisure Acquisition's trust account and any excess cash on both companies' balance sheets will go to pay down Gateway's $154 million in debt. In 2020, Gateway is expected to generate adjusted EBITDA of $149 million on $659 million in revenue. That puts Gateway's enterprise value at 7.5x 2020 adjusted EBITDA.Long-time gaming executive Marc Falcone will take the reins as its chief executive. Current Gateway CEO, Tony Santo, will retire. Flying Eagle Acquisition (FEAC)Source: Shutterstock.com Harry Sloan and Jeff Sagansky have done it again. On March 5, the duo sold 60 million units of Flying Acquisition Corp. (NASDAQ:FEACU) at $10 per unit. Five days later, the underwriters exercised their 15% over-allotment and bought another 9 million units at $10 per unit. In addition to one share of Class A common stock (symbol FEACon NASDAQ), investors got one-fourth of one warrant, with each warrant entitling the investor to buy another share for $11.50. The shares began trading on March 6. The sixth SPAC from the duo, it raised gross proceeds of $690 million. The pair aren't limiting their search to one particular industry. The net funds raised, after subtracting for $800,000 in offering expenses and initial working capital of $450,000 will be kept in a trust account bearing interest at 1.5% annually. If an acquisition isn't found within 24 months, the funds in the trust account would be returned to investors. * 7 Stocks to Sell as We Enter a Bear Market The chances are excellent; they'll figure something out. Acamar Partners Acquisition (ACAM)Source: Shutterstock.com Acamar Partners Acquisition Corp. (NASDAQ:ACAMU) sold 30 million units at $10 per unit on February 22, 2019. The units consist of one Class A common stock (symbol ACAM on NASDAQ) one-third of a warrant (symbol ACAMW on NASDAQ) with each warrant entitling the investor to buy another share for $11.50.The management team includes Chairman Juan Carlos Torres, the Executive Chairman of Dufry (OTCMKTS:DUFRY), the world's largest travel retailer, and Luis Solorzano, who has 19 years of private equity experience with Advent International and is expected to step into the role of CEO. The target company will operate in the consumer and retail sectors. Possible areas of interest include travel retail, food and beverage, luxury goods, fashion, lifestyle and leisure products and services, and consumer branded products. Given both men's backgrounds, it makes sense that they're going after consumer-facing businesses. More than one year into the 24-month acquisition requirement, the coronavirus might provide them with a few more opportunities in the coming months. Conyers Park II Acquisition (CPAA)Source: Shutterstock On July 17, 2019, the Conyers Park II Acquisition Corp. (NASDAQ:CPAAU) sold 40 million units at $10 per unit. In addition, underwriters exercised part of their over-allotment, buying an additional five million units at $10 per unit, raising gross proceeds of $450 million. Each unit included one Class A common share (symbol CPAA on NASDAQ) and one-fourth of one warrant with each warrant (symbol CPAAW on NASDAQ), entitling the investor to buy another share for $11.50.I think by now, you're starting to get a general idea of how SPACs are structured. Mainly, you buy units at $10, get one common share, and a fraction of a single warrant to buy an additional share at $11.50. The only thing that generally changes is the fraction. Like a lot of SPACs, Conyers Park is sponsored by Centreview Capital, a private equity firm that specializes in consumer and technology companies. In July 2016, Centreview launched Conyers Park Acquisition Corp., raising gross proceeds of $402.5 million. Less than a year later, it combined with Atkins Nutritionals Inc., renaming the business Simply Good Foods (NASDAQ:SMPL). * 7 Stocks to Sell as We Enter a Bear Market While it hasn't identified a specific area to invest, it intends to focus on the consumer sector. Haymaker Acquisition II (HYAC)Source: Shutterstock One of the critical ingredients for SPACs looking to raise a lot of money is the people involved. You wouldn't give a plug nickel to someone with little experience. However, if Steven Heyer, a former CEO of Starwood Hotels & Resorts, were involved, you'd likely consider investing. Well, Heyer is the CEO and Executive Chairman of Haymaker Acquisition Corp. (NASDAQ:HYACU), which raised $400 million in gross proceeds last June, including the exercise of a $50 million over-allotment from underwriters. Each unit included one Class A common share (symbol HYAC on NASDAQ) and one-third of one warrant with each warrant (symbol HYACW on NASDAQ), entitling the investor to buy another share for $11.50.Like several of these SPACs, Heyer and company are focusing on companies operating in consumer-related industries. It's open to a provider of products, services, or both. The ideal target has an enterprise value of $750 million or more, is growing, and has an asset-light business model.Heyer previously headed up Haymaker Acquisition Corp., which raised $330 million in October 2017, combining with OneSpaWorld Holdings (NASDAQ:OSW) in March 2019. Unfortunately, OSW specializes in providing health and wellness services aboard cruise ships. Its stock's lost 60% of its value in the past month. Extreme value investors might want to take a sniff around OSW stock. Oaktree Acquisition (OACU)Source: Photo from CreditRepairExpertIn July 2019, Oaktree Acquisition Corp. (NYSE:OACU) raised $201.25 million, selling 20.125 million units at $10 a share. That includes the exercise of the 15% over-allotment by the underwriters. Each unit included one Class A common share (symbol OAC on NASDAQ) and one-third of one warrant with each warrant (symbol OACWS on NASDAQ), entitling the investor to buy another share for $11.50.If you own shares in Brookfield Asset Management (NYSE:BAM), you're probably familiar with Oaktree Capital Management (NYSE:OAK.A, NYSE:OAK.B), the SPACs sponsor. Oaktree Capital is an investor of distressed debt that was co-founded by Howard Marks; it is now majority-owned by the Canadian alternative asset manager. While its mandate is wide open, it will focus on a business combination in the industrial and consumer sectors, where it feels it can bring its years of experience to the table. * 7 Stocks to Sell as We Enter a Bear Market With Brookfield involved, you can be sure a combination will get done by July 2021. Will Ashworth has written about investments full-time since 2008. Publications where he's appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * America's Richest ZIP Code Holds Wealth Gap Secret * 7 Stocks to Sell as We Enter a Bear Market * 4 Energy Stocks Paying Jaw-Dropping Dividends * 3 Stocks to Buy That Will Dodge Any Volatile Market The post 10 SPAC IPO Stocks to Buy As the Market Enters Bear Territory appeared first on InvestorPlace.
I've heard of transformative investments, but rebel billionaire Richard Branson is taking it to the next galaxy, and he hopes quite literally. With Virgin Galactic (NYSE:SPCE), Branson intends to make space travel commercially accessible, not only for recreational purposes but also for advancing scientific innovations. There's just one problem with SPCE stock.Source: Christopher Penler / Shutterstock.com As the eccentric founder should realize, the earth is flat. Furthermore, covering the earth is a dome-shaped barrier called the firmament. According to high-level confidential sources in the upper echelons of the CIA, the firmament is anchored in a 360-degree fashion around Antarctica, which is really an ice wall preventing us from falling over the edge. Therefore, getting beyond this firmament is really an impossible undertaking.Unfortunately, we live in a world where I must explain explicitly that the above is a joke. But what is apparently not a joke is SPCE stock and the underlying business. At its closing peak, shares jumped over 219% on a year-to-date basis. However, fears of the coronavirus from China spiraling into a global recession quickly unraveled much of the dream.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat said, SPCE stock is still up over 40% at time of writing. Frankly, this is an incredible haul given the dramatic market fears. Should you reserve a seat for Branson's boldest bet yet? * 9 Recession-Proof Stocks to Disinfect the Coronavirus Here, I agree with our own Ian Bezek. As he put it, "If you like volatility and use smart money management, go ahead and have a blast with SPCE stock." But based on how Virgin Galactic is structured, this isn't really an investment but rather a gamble.I'll add to the argument by noting that it's a confusing one as well. SPCE Stock Lacks a Pathway to ScalabilityFirst, let me just state that the technology underpinning Virgin Galactic is on the far side of brilliant. The process is straight out of a science fiction movie. A carrier aircraft will "drop" a six-passenger space plane at an altitude of approximately 15 kilometers. From there, the space plane will ignite its rocket motor, powering its way to 110 km.With the boundaries of space defined as 100 km, passengers will experience a few minutes of weightlessness. Additionally, they will see the curvature of the earth, thereby dismissing one of the perplexing theories forwarded on YouTube. It's a win for science and clearly a win for the passengers enjoying a once-in-a-lifetime experience.However, that's where my interest for Virgin Galactic ends and where my skepticism for SPCE stock begins.Again, I don't doubt that the company has engineered a transformative aeronautical platform. But we have to clearly delineate the science from the business. As it stands, Virgin Galactic makes no sense.Tickets to partake in this flight are prohibitively expensive, at a quarter of a million per seat. To be fair, Virgin Galactic representatives have stated that more than 600 people have put down a deposit. But outside of well-heeled billionaires and millionaires, the market for such a commercial enterprise is extremely limited.Theoretically, advancements in technology and production efficiencies, along with economies of scale, can drive down costs. But I just don't know how you're going to scale down from such an extreme threshold.Furthermore, if Virgin Galactic intends to focus on the space tourism aspect, cheaper alternatives exist. For instance, a company called Incredible Adventures can book you a seat on a Soviet-era MiG-31 fighter jet. Although it can't launch into space, you can get to the edge of it. We've Seen This BeforeOne aspect that does offer a more realistic pathway for Virgin Galactic is utilizing the space plane platform for ultra-high speed international travel. For the titans of industry, along with perhaps heads of state, I can imagine some demand coming in.But will that be enough for SPCE stock? Again, I doubt it and partly because we've seen this story before. For several years, Air France-KLM (OTCMKTS:AFLYY) and British Airways operated the Concorde, a supersonic commercial jet.From a scientific perspective, the Concorde was an impressive achievement in flight. As well, casual bystanders appreciated its sleek, aerodynamic design elements. But from a business angle? As The Sun reported, low passenger numbers and rising maintenance costs killed the program.Sure enough, Richard Branson proposed several ways to revitalize the brand. Apparently, he has settled on his own pet project.I wish him well. But until space travel becomes a financially viable option for the average Joe, SPCE stock will simply fail to launch.A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Recession-Proof Stocks to Disinfect the Coronavirus * 7 Energy Stocks That Are Too Cheap to Ignore * 5 Disruptive ETFs to Invest in the Most Innovative Tech Stocks The post Donat Get Lost in SPCE Stock appeared first on InvestorPlace.
Juniper Industrial Holdings, Inc. CEO Roger Fradin and CFO Brian Cook By John Jannarone The industrials sector is ripe with acquisition opportunities, thanks to attractive cash-flow dynamics, a relatively stable market, and meaningful barriers to entry. That’s according to Roger Fradin and Brian Cook, CEO and CFO, respectively, of Juniper Industrial Holdings – a special-purpose […]
COO Gwynne Shotwell said she's not thinking about an IPO of SpaceX's Starlink satellite business right now, echoing earlier remarks from CEO Elon Musk.
In a market plagued by the coronavirus, could General Electric (NYSE:GE) finally be in position to bring good things to life for investors? Let's take a look at what's happening off and on the price chart of GE stock, then issue a stronger risk-determined assessment on shares.Source: testing / Shutterstock.com Shares of turnaround play General Electric, the once-mighty industrial and former Dow Industrials linchpin, have been hit hard the past couple of weeks. If you weren't aware, the stock has hemorrhaged over 40% since the second half of February. Not that GE is alone.Thanks to the spread of the coronavirus, man-made attempts to guard against an even larger outbreak, and investor-made mental constraints, the major averages are flirting with a bear market at Monday's lows. And from current blue-chip titan and world's largest publicly-traded stock Apple (NASDAQ:AAPL), to a smaller and more speculative outfit like Richard Branson's Virgin Galactic Holdings (NYSE:SPCE), it's been a viciously ubiquitous period for most risk assets.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * Buy the Dip in These 7 Online Advertising Stocks Now Still, with painful and obvious blood in the streets and the Trump Administration floating a payroll tax cut to combat Wall Street's illness, are shares of a well-discounted, 'comeback kid' General Electric now worth the risk? Some pros certainly believe so.Just one week ago and sporting a valuation roughly 25% higher than Monday's closing print, CNBC analyst and The Street's James Cramer saw General Electric as an opportunity based on the solid leadership of CEO Larry Culp. In fact, Cramer looked like a kid guilty of stealing from the cookie jar when he disclosed his own "buy, buy, buy" of GE stock for his charitable trust in front of the cameras. GE Stock Price Weekly Chart Source: Charts by TradingViewBack in the first half of December, I cautiously warned against buying shares. At the time, I was concerned with company's questionable 'reassuring dividend news.' As well, overbought conditions as shares hit technical price resistance had our attention. The counsel was both right and wrong … and then some.December's outlook for General Electric's share price was fairly accurate over the next couple of weeks as the stock largely stalled in its tracks. The warning was also clearly wrong. It's also true GE then proceeded to rally strongly to new relative highs into February. Now though, a targeted and slightly compromised $8.50 - $9.75 forecast is readying for a fresh 'buy, buy, buy' recommendation.Technically and as the provided weekly chart illustrates, shares have broken beneath classic trend and Fibonacci support used in our initial estimate of GE stock's downside risk. But life and investing are rarely perfect. And in lieu of the market's bearish pandemic, the forecast has proven more correct than wrong. More importantly, given today's oversold test of the 76% support level and a developing higher-low pattern, the price action has us seeing and believing GE is nearly ready to bring good things to life for investors.Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies, related musings or to ask a question, you can find and follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Healthcare Stocks Worth Your Time Now * Buy the Dip in These 7 Online Advertising Stocks Now * 7 Services Stocks to Buy on Coronavirus Weakness The post Why GE Stock Is Now a aBuy, Buy, Buy!a appeared first on InvestorPlace.
Zach Fisher, Managing Director, TMT Investment Banking Special purpose acquisition companies, or SPACs, now account for approximately one fourth of the entire U.S. IPO market, a result of higher-quality participants, from investment banks to private-equity firms, giving the product validation. A growing percentage of these SPACs have affiliation with an alternative asset manager. In IPO […]
Virgin Galactic prepares to launch space tourism flights later this year but it's the plans to revolutionize travel on earth that promises to generate billions of dollars.
The former Facebook executive and founder of Palo Alto startup investor Social Capital on Friday filed plans to raise over $1 billion in two more "blank check" IPOs, similar to the one that he used to help take Virgin Galactic public last fall.
Tech companies have come under fair and overdue criticism over the last year. But we could get a reminder of tech’s benefits in the coming weeks.
Chamath Palihapitiya, who used a previous blank-check initial public offering to place Virgin Galactic Holdings Inc. on the public markets, has filed for two more such funds that seek to raise $900 million in total. Filings with the Securities and Exchange Commission on Friday afternoon show an attempt to raise $300 million for Social Capital Hedosophia Holdings Corp. II and $600 million for Social Capital Hedosophia Holdings Corp. III. The first Social Capital Hedosophia blank-check IPO raised $600 million in 2017 and sat dormant for more than 20 months before announcing a deal with Virgin Galactic. The space-travel company began trading in October and has more than doubled in price since, closing Friday at $24.60 for a market capitalization of $4.8 billion.
Current valuations of the company, like its space ship, are in the stratosphere and need to come back down to earth Continue reading...
Virgin Galactic stock continued to fall Thursday after receiving two downgrades following a massive run-up earlier this month.
Highflying stocks such as Tesla and Virgin Galactic are being sold off in the coronavirus-related stock market selloff. But the worst performing stocks in the market are getting hit just as hard.