Take my investment to the moon, so i put my money where my mouth is we’re going to zoom out here folks, so consider hitting that. Like for the clarity of my transparency, is i jump into a company called srac, which is stable road accusation, a spac play that is going to be merging with a space infrastructure company called momentous here folks, i picked up my first 68 shares, because this is not The only purchase i plan on doing at a price of 22.93, the equivalent of about 1500 us and just taking a look at the stock guys. It is trading up pretty aggressively here at a whopping 134 percent, since they kind of came to this idea that they were going to merge together now there’s a little bit less risk on the table for me, because if you understand special purpose acquisition companies guys they’re. Basically, holding companies for your cash until they find and acquire an acquired target, and basically, if this merger doesn’t happen, i actually get about half of my money back because they’re gon na offer a 10 unit, so there’s there’s a little less risk on the table. But when we get through the good, the bad and the ugly of this company you’re going to see that there is still a lot of exposed risk i’m taking on here folks. But before we get into the big picture of it all in the the industry. And my both thesis let’s talk about the company momentous guys.
Now this is a company that is aspiring to do the late stage, delivery of satellites, along with a bunch of other infrastructure to space they’re, claiming that they have a much cheaper patented technology. That spacex is already going to be using along with nasa and a dozen other space companies guys and i think, they’re, using an h2o propulsion system which cuts down the cost by more than half, and this is some crazy, fascinating stuff. So currently, this is the only space company with this log of clients, which is basically every major space company, guys with some of the current and the most iconic being spacex they’re, going to be providing the utility and basically just the infrastructure, for repairing and dealing with Starlink satellites, which i think is so broadly overlooked right now that when the public picks this up it’s going to be insanely explosive, but they also got every major company that exists right now in their backlog with nasa and a ton that i have never even heard Of before and right now for 2021 they’re planning on doing about 20 million dollars in sales 2022, they expect to ramp to 152 million, but the real revenue doesn’t start till basically mid 2025 to 2027. They expect to be doing billions in revenue here folks, but taking a look at their exact system setup. So this is the space transportation they’re talking about with the hub and spoke model in space. Momentous makes access to space significantly more affordable by combining rideshare launch with low cost last mile delivery through the hub and spoke model of space which cheaply lines it up into orbit and then lets the satellites go which later gets picked up for re docking and just Taking a look guys, they actually show the cost of this here, and the traditional satellite platforms are about 10 million, get against their patented designed delivery system, which can cost about a million dollars in comparison.
So this is a savings of 10x, like this is incredible stuff, which makes me a lot more happy about the company so putting that main aspect of their business aside, which, in my opinion, is going to be insanely huge. If we keep up on the trajectory that we’re going on through this new evolution in space, guys and they’re forward thinking by 2035, is they want to actually be the first company to be mining, asteroids and waters and just minerals in space? Now this was something when i first heard it i’m like okay, then i got slapped and i’m like damn guys like. There is something happening here. You should not be overlooking because this industry is very knit right now and capturing these early companies when, when these really get actualized by people in the investing world, i still think we’re going to get a lot of catalyst moving forward here folks. But we really need to talk about the early stage risks and the growing pains that come with this. And it all came down as a very recent, with a guy by the name of mikhail kakorosh and i’m. Hoping i’m saying that right because he is russian and it is the founder and ceo who recently just stepped down. This was the guy that took the company from point a to point b and we never like losing founders of a company. And this has caused a lot of disruption and concern amongst anybody that owns the stock waiting for the merger to happen, because this is like such a space thing to happen when we’re talking about rust, russian espionage and he has connections to sieber bank, which is a Company i’ve talked about and they’re currently halting all projects while they investigate his background is this.
Guy is involved in a lot of space companies. There’S concerns about sec regulation of him operating a company like this. It literally led to a board decision as of january 25th, guys that caused the change in leadership. He completely had to step down from the company out of the risk that this was going to prevent a merger from happening and further caused delays in their projects, which it has guys they recently just proved their technology back in december. By doing a successful test launch and just testing it out right, and then they were supposed to have a project with spacex that got delayed. That was literally supposed to be happening this month to basically the latter half of this year. I think they have several launches with spacex going from june until december, but this is a big risk, as they announced. The board of directors has appointed don harms the company’s chief revenue officer as the director and interim ceo effective immediately and luckily a lot of the board members have experience in aerospace working for boeing. So it does take a little bit of concern off my back but it’s a damn. Shame leading the pioneer of this industry losing his entire flagship company likely not even going to be able to be a part of it depending on how these sec rules and regulations uh come into this guys like this is some pretty intense, scary, stuff, but let’s be Real it’s so stereotypical again for a space company to be involved in russian espionage, but i don’t think it’s going to step that far.
I really don’t think that guy’s, like feeding information to russia. I know it is a shame and could be a major risk from preventing the company from even going through its merger, but something tells me that if they weren’t going through the merger, we would have already found all of this out, because this has been news. That has been going on since december, and only recently they just announced the interim new ceo. Well, basically, um courage is going to be stepping back, and this. This has led a lot of investors to not investing in the company. This company is going to be remanifesting their plans to do all the spacex launches and then some so i’m very much looking forward to this in the latter half of this year making sure those projects come online. Is the company did announce that nothing has changed their financial plans for the year? So that is what made me lean over more into purchasing the company. So at least the ceo has got the patents they built the technology they’ve proven it works a lot of the big hurdles, the company’s already overcome so i’m, hoping the new leadership is going to be able to take that technology and continue to implement it and continue To secure these contracts with these major space companies is, we just saw you know that they announced the selfie satellite now this is going to be the coolest one, because it’s going to be on a falcon 9 rideshare mission in q1 of 2022, where basically they’re putting A screen on a satellite, this company is going to deliver to its orbit and it’s going to have a camera on it, that’s going to allow you to upload your image to space and take a selfie with the earth.
As the backdrop guys, i mean this is so incredible to be discussing over a beer with a bunch of guys that there’s no way when the public there’s just no way to me that, when the public picks up this reality that these stocks aren’t just going to Go to the moon guys. This is also the only company that’s going to be involved with the first space missions coming up in 2023. Guys, like this company is involved with so much and again, it makes sense that they’re worried about russian espionage, but against the current competition that exists, we just recently saw the announcement of what will be the third company to merge in the space industry. There are only three guys literally yesterday announced that they are going to be merging um with astro, which is a low orbit launching rocket company, so so, unlike spacex, is dealing with heavy rockets trying to get to the moon. This is a company that’s competing with virgin galactic and one other company. I can’t remember the name off the top of my head, but their only goal is to basically to cheapen the rocket industry to basically get satellites into low orbit. This isn’t a company that’s going like way into space and they are planning on growing pretty aggressively, but that is their only goal and they’re going to be the only pure play rocket company, which is going to be very similar, which is on a very similar timeline.
Against uh momentous because they basically only just prove their technology out in december and they’re, only going to start taking on contracts that they have in a backlog, clients this year, but still pretty incredible stuff guys and just taking a look virgin galactic right now. This is the prime catalyst for what’s going to happen when these companies come through their merger ipo um, because, basically, since it happened with virgin galactic, it is trading up 430. For my current, both thesis guys right now, even though sr ac looks like it’s worth 530 million it’s really not. This is just the capital company that and what they’re raising when it merges. I think it’s going to merge at a valuation of around 2.5 to 3 billion, give or take it could be a little bit more than that valuation. I have to double check that information, but just taking a look guys against virgin galactic that’s worth 13 billion and, in my opinion, even with the rocky future of the ceo. I still think momentous actually has a way better structured business model than currently virgin. Galactic does, and i think, they’re going to have a quicker to revenue model as well so i’m, presuming that it should be worth more in the public domain, and that means, in my opinion, if it’s a two and a half billion dollar company. It has the potential to 5x, my money, even from where it currently sits, and the fact that i can only lose just about 60 percent of that money if they don’t merge.
The risk reward benefit to me is so well worth it i’m, taking photos from a selfie satellite that they’re going to launch next year, guys i’m going to be celebrating the wins and the capital gains coming off this company and then finally, the biggest catalyst is obviously The announcement of arc invest is getting into a space etf and i’m highly confident, considering there are only three pure play: space companies right now, being virgin galactic momentous and astra guys. You know that this etf is going to be holding them, and that is going to put a lot of attention um coming along with kathy wood. Here we can see that their investment focus is reusable rockets, orbital, aerospace, sub, orbital, aerospace, uh aerial, drones, 3d, printing and then enabling technology here. So if i were you – and you were looking for some really good high risk, high reward benefit plays right now guys. I am promising you well myself, because i’m, not a financial advisor, so don’t, take this as serious advice, guys i’m, just documenting my own personal journey that i i think, there’s just gon na be way more upside potential and way more hype. Uh to come than people are in that people are currently aware of because nobody even mentions these companies, except for virgin galactic right now so i’m, taking a step back, i don’t want to take on too much assumed risk too early on. So i just started a position to give myself um some more further excitement to do deeper, due diligence and make sure things are going to work out with their technology and they get from point a to point b on this acquisition merger.
So once they get through the merger itself, whether the stock goes up or down, i will be acquiring more shares. After the fact, i just wanted to get in pre ipo, with a good little healthy, starter position with the idea of leveraging no more than probably about three or four thousand in this, because, like my meta, my other high risk plays. Realistically. If i plan on this thing, five to 10xing for me over the next three to five years, i mean really a four or five thousand dollar investment, guys really quickly becomes 25 or 30 grand. So that is just my personal prediction. I passed the question off to you. I want to know what you think in that comment section below guys and i need to go back to buying some dividends. Talk so stay cool, stay awesome.