Skip Navigation Links
Is Virgin Galactic good for a short term speculation?
13 Jul 2021 (257 views)

I am considering a short term speculation in Virgin Galactic.

It successfully carried out a launch into outer space with several passengers, including its founder Richard Branson. 

Details of the flight here.

The stock price reached a high of $54 on 8 Feb 2021, dropped to $16 on 10 May and jumped to $56 on 21 June. 

It fell by 17% following the announcement of a stock issue of $500 million following the successful flight. It is currently trading at $40.

Details here.

I observed that the price usually drops on the announcement of a stock issue, but it climbs up afterwards. Will it happen in this case?

I read an article explaining the business opportunity is point to point travel. Top executives may book a flight to get to a long distance destination in a short time, and pay a high ticket price for the flight.  It is cheaper than operating a corporate jet.

I may take a short term speculation here. 

Note - this is highly speculative. I am giving a personal opinion. This is not investment advice.

Tan Kin Lian

 


Is Virgin Galactic good for a short term speculation?
[Back] [Print]


I am considering a short term speculation in Virgin Galactic.

It successfully carried out a launch into outer space with several passengers, including its founder Richard Branson. 

Details of the flight here.

The stock price reached a high of $54 on 8 Feb 2021, dropped to $16 on 10 May and jumped to $56 on 21 June. 

It fell by 17% following the announcement of a stock issue of $500 million following the successful flight. It is currently trading at $40.

Details here.

I observed that the price usually drops on the announcement of a stock issue, but it climbs up afterwards. Will it happen in this case?

I read an article explaining the business opportunity is point to point travel. Top executives may book a flight to get to a long distance destination in a short time, and pay a high ticket price for the flight.  It is cheaper than operating a corporate jet.

I may take a short term speculation here. 

Note - this is highly speculative. I am giving a personal opinion. This is not investment advice.

Tan Kin Lian