$SPCE I will be summarising some pointers that would likely be positive catalysts for Virgin Galactic in Q3 and Q4.
1. Likely more testing for the Delta fleet in Q3 and each time
@virgingalactic has more announcement will be a catalyst. Please update us frequently at least 2x a month, so that investors know that everything is in schedule.
2. $750,000 per ticket, 6 passengers per flight and at least 4 flights per month.
It will be $750k x 6 x 4 =$18mil, each quarter will have $54mil revenue and each year around $208mil revenue.
Typically space stocks, when sentiment improves can command 10x - 25x price to sales ratio. What does this mean?
Market capitalisation of Virgin Galactic has potential to reach $2.08b to 5.2b , if it is managed to reach above scenario next few quarters. We don’t need the revenue to come in, we just need to see potential revenue could be coming in and price will start to move 2-3 quarters before it happens.
Current Market Capitalisation based on Friday closing price is $435mil.
So we can see price moving 4.78x to 11.9x.
This is realistic projection based on management’s base scenario.
3. I am expecting there will be a trend whereby Virgin Galactic earning reports next 2 quarters seeing lesser losses each quarter.
4. From Technical Analysis angle. Seeing a chart breakout of 1.5 years decreasing downtrend channel with surging volume is very bullish. Bullish till I am going all in and willing to pump in more and more with my monthly cashflow from income. I am seeing either a possible 10x in Q3 if we have positive catalyst announcements happening all in Q3, or just a 5x-7x in Q3 till end of the year if catalysts didn’t come in as planned.
5. I already saw a cup and handle structure forming if you zoom in weekly candle chart. Usually this will mean a possible of at least 5-10x from its bottom price. This will mean from bottom $2.13, a possible of $10.65 to $21.30 is easily achievable.
6. Quarterly chart I am seeing a 80% probability of MACD having golden cross in Q3. What does this mean? It means a surge of 2x to 5x based on Q3 opening price of Virgin Galactic is also likely possible.
This post is meant for bulls who are willing to take risk to make generational wealth.
$SPCE 🚀