What I Am Buying Today.

[crimsonghost747]

(10-03-2022, 10:43 PM)stockguru Wrote: SPIR? Why full with junk when you can buy quality names on sale. That name may be delisted soon  I can’t remember the last time I bought $1 stock. Rather just play the lottery! All kidding aside. Hope it works out for you.

SPIR is not junk, that is why. They have a solid business plan, they have the largest data satellite infrastructure around this planet and the government contracts are starting to drop in. (4 different US government agency contracts signed during September, some of these were extensions to old ones)

Revenue, consisting almost entirely of longer term contracts rather than one time items, is still soaring. Currently the market cap is only 2x of their annual recurring revenue. (so essentially revenue that is guaranteed to come in based on existing contracts) I don't need to explain how low that is.

The main issue here is that it's super expensive to build a satellite network and the delay between spending all that capital and getting it back through long-term contracts is long. They will probably need to secure some more funding before they turn cash flow positive, so bankruptcy is a real option if they can't get that done.

So no, it's not a "lol I see a $1. I'll buy it because it's cheap" play. It's a company with potential (and massive risks too) which is trading at a very low valuation right now. In 10 years this will either be a very profitable company, or bankrupt. I don't think there is anything in-between.