I’ve gone all in on virgin galactic, the theory here being that in the run up to the Space X IPO this stock will continue to benefit from all the hype and get lifted up alongside other space stocks, as we have seen in other highly anticipated IPOs in the past.
I want to be clear that this is not a long-term play and I plan to get out probably at the latest a couple of days after the IPO, possibly even before the IPO.
Pros are that they recently announced that they are resuming the sale of tickets for commercial flights, which they hope to start this year. The boss also added 20,000 shares last week.
Downsides are that they continue to burn cash at an alarming rate and there is a real risk of further dilution - hence my reluctance to hold for a long period of time.
Of course I appreciate this is incredibly speculative but it’s a risk I’m willing to take as I have a lot of conviction that all space stocks still have room to run ahead of the IPO, but this one has probably run the least so far!
