I'm Buying in on This Competitor to Elon Musk's Starlink

We have some bounce action on Thursday morning, with breadth running slightly positive with around 4,800 gainers to 3,950 decliners. The Magnificent Seven names are leading the way and helping the Nasdaq 100 QQQ gain about 0.5%.

With the very important jobs report hitting Friday morning, it would be surprising if the buyers stay aggressive. A weak jobs report is likely to generate a very negative market reaction, so the mood has been very nervous this week.

I continue to watch my shopping list very carefully but see little reason to make any moves right now. Two names on the list that I am very close to adding are TG Therapeutics TGTX and Shift4 Payments FOUR, but I’m forcing myself to stay patient.

One interesting name Thursday morning is AST SpaceMobile ASTS, which is gearing up to compete with Elon Musk’s Starlink satellite internet service. It has several joint ventures with mobile operators like Verizon and is preparing to launch its own satellites.

On Wednesday, the stock jumped when Deutsche Bank lifted its target price to $63 to $22. The chart was set up well, and the stock gained more than 12%. However, Thursday morning, the company announced a shelf offering since it will need to raise funds next year for operational expenses. It looks like around 5% potential dilution at current prices, but it triggered some panic selling. Market conditions are not helping.

I started a partial position in ASTS Thursday morning and will look to build it up as it develops. The stock was down as much as 20%, which looks like an overreaction to me, but in the current market, the dip buyers are going to hesitate.

I’m staying very selective and patient with my trading right now, but I’m hopeful that we will see a burst of volatility on the job news on Friday.

At the time of publication, Rev Shark was long FOUR, TGTX and ASTS.