Buying More Rocket Lab After $397 Million Update
The aerospace firm has been awarded a significant contract by the U.S. Space Force.
You've reached your free article limit
You've read 0 of 1 free Pro articles.
Late Tuesday, portfolio holding Rocket Lab (RKLB) announced that the firm had been awarded a $397 million contract by the United States Space Force under the Space-Based Airborne Moving Target Indicator program.
This initiative, which is led by the portfolio acquisition executive for space-based sensing and targeting, will aim to enhance global security by deploying a resilient space-based system to detect and track airborne threats in real time.
Under the contract awarded, Rocket Lab will develop, launch and operate multiple advanced “flatellites.” Flatellites are a next-generation flat-satellite designs optimized for large constellations. These next generation satellites will operate with space-based sensors and at low latency, on high bandwidth communication links. The firm will launch these flatellites on the upcoming Neutron rocket and then operate them from secure facilities. The idea is to provide data and pass information on to the U.S. Space Force. An option for additional flatellites is included in this total contract value.
The flatellite spacecraft and Neutron launch service will enhance vendor diversity in the SB-AMTI program while increasing capabilities for deploying SB-AMTI architecture, which integrates cutting-edge sensors, secure communications and robust ground processing systems. The goal here is to provide the U.S. military and perhaps allies with constant, real-time battle space awareness, especially in contested environments. Rocket Lab’s portfolio of U.S. government contract work includes missions for the U.S. Space Force, U.S. Air Force, the National Reconnaissance Office, DARPA and NASA.
Heads Up
Portfolio holdings Alto Ingredients (ALTO) and Inseego Corp (INSG) are both set to release second quarter earnings after Wednesday afternoon’s closing bell.
Heads Up No 2
Portfolio holding Ondas Inc (ONDS) will not release the firm’s quarterly financial results until next Thursday. Data released on Tuesday afternoon revealed short interest in ONDS has reached huge proportions ahead of that release. Short interest in ONDS now stands at 40.28% of the float up from 36.14% as recently as July 15. A lot of folks are betting against us, gang, which may just work in our favor here at the portfolio.
Upcoming Portfolio Earnings
Inseego Corp (INSG): After the closing bell on Wednesday, August 5. Expected: Adjusted EPS of -$0.12 on revenue of $39.91 million
Alto Ingredients (ALTO): After the closing bell on Wednesday, August 5. Expected: Adjusted EPS of $0.09 on revenue of $231.22 million
Rocket Lab (RKLB): After the closing bell on Monday, August 10. Expected: Adjusted EPS of -$0.05 on revenue of $231 million
Evolv Technologies (EVLV): After the closing bell on Tuesday, August 11. Expected: Adjusted EPS of -$0.02 on revenue of $41.81 million
Velo3D (VELO): After the closing bell on Tuesday, August 11. Expected: Adjusted EPS of -$0.27 on revenue of $13.5 million
Ondas Inc (ONDS): Ahead of the opening bell on Thursday, August 13. Expected: Adjusted EPS of -$0.07 on revenue of $68 million
Tuesday’s Intentions vs Actual Trades
Intention: Purchase 10 shares of (SWBI) at or close to the last sale of $14.98
Actual trade: Bought 10 shares of SWBI at $14.84
Intention: Sell 100 shares of (RXT) at or close to the last sale of $4.88 to exit the position
Actual trade: Sold 100 shares of RXT at $5.03 (yes, somehow, we turned a profit on this one)
Wednesday’s Intentions
Purchase 2 shares of RKLB at or close to the last sale of $74.66
Current Positions
Long 225 shares of ALTO at $5.2821. Target price: $8. Last sale: $5.35.
Long 80 shares of EVLV at $5.8959. Target price: $8.50. Last sale: $6.10.
Long 40 shares of INSG at $7.7563. Target price: $11. Last sale: $7.99.
Long 115 shares of (OCUL) at $8.3545. Target price: $11. Last sale: $8.66.
Short one OCUL $11 September 18 call at $1.65. Last sale: $0.50.
Long 250 shares of ONDS at $8.4266. Target price: $14. Last sale: $8.81.
Long 50 shares of (PL) at $24.4758. Target price $46. Last sale: $22.68.
Long 4 shares of RKLB at $66.505. Target price: $98. Last sale: $74.66.
Long 100 shares of (SOFI) at $15.7153. Target price: $24. Last sale: $18.64.
Long 40 shares of SWBI at $15.5143. Target price: $19. Last sale: $15.00.
Long 115 shares of VELO at $12.1201. Target price: $18. Last sale: $13.69.
Cash: $637.68.
Portfolio Value: $11,258.79, +12.6% from inception on March 24.
At the time of publication, Guilfoyle was long ALTO, EVLV, INSG, OCUL, ONDS, PL, RKLB, SOFI, SWBI and VELO.
