Breaking Down the Complex Space Industry to Get Clear Insights The space industry is seeing a lot of activity, but active industries needn’t necessarily be simple choices. Some insight could help here.
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Choosing industries to invest in can sometimes be tricky. That’s why it is essential to study the market in-depth and seek investor opinion. Helping people trade effectively are direct market access brokers, offering high tech trading platforms online. Breaking up the Space Industry It’s clear even for the uninitiated that there is a space race brewing. And it isn’t just space colonization we’re talking about. For sure there are plans for inhabiting Mars. But the space industry also includes segments such as satellite-based Internet and space travel. But isn’t it still too early to invest in the space industry? Motley Fool analyst Nicholas Rossolillo breaks down the industry to offer some guidance on what to invest in. Well there are big private players already planning various space ventures. Elon Musk’s SpaceX, Sir Richard Branson’s Virgin Galactic, and Amazon ($AMZN) are the ones driving the most excitement in the industry. But there are also government contractors such as Northrop Grumman ($NOC) and Boeing ($BA) who account for the bulk of the $360 billion current global spending, which is expected to rise by around 5% a year in the near future. And much of the industry is also not accessible to average investors. So investing in space is a bit tricky. The Space Communication Segment Offers Investment Chance Let’s look at a specific segment within the space industry. The space communication industry is worth looking into. It is a space-related segment that has been around for quite some time, unlike space travel or colonization. While satellites have been in space ever since the latter part of the Cold War era, there have been many new technologies adopted. These developments have resulted in legacy firms finding new opportunities. The Speculative Case for Intelsat One of these firms is Intelsat ($I). It is the world’s largest satellite services provider. It is responsible for providing important services for internet, mobile, media and government companies. But the company has been entrenched in debt worth $14.5 billion. Revenues too haven’t exactly been growing, staying more flat in the region of $2.09 billion through the past 12 months.
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The company’s shares have recently been up and down. It was once a penny stock, but it rose to more than $20 per share. The catalyst for the rise was the news of C-Band Alliance proposing a private auction of the C-band spectrum for repurposing it for internet and 5G mobile use. The CBand Alliance is backed by Intelsat. But it isn’t actually clear if the auction could get public through the Federal Communications Commission, with the sale proceeds heading to the US Treasury. Intelsat stock then fell back to below $8 per share. But there is strong optimism that the sale of its C-band could give the company an infusion of cash. For that purpose, Rossolillo considers it is worth a look though there is speculation involved. January each year brings in renewed optimism to invest in new stocks. And with the bullish run continuing, this year is no different. Space communication could be the industry that could give you the impetus, provided you select the right stocks with ample research. Let advanced trading software by online brokers help you here.
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