You are receiving this email because you signed up to receive our free e-letters, or you purchased a product or service from its publisher, Eagle Financial Publications. Four Space Stocks Show Promise Entering 2023 01/24/2023 [Sponsored Content [Crack The Trading Code In 2023!](]( Options trading champion Chuck Hughes reveals his step by step plan to successful trading with his brand new e-guide, "The Stock Market Income Code". Free for a limited time, this guide is the perfect for any trader who wants to have a better year of trading in 2023, recession or no! [Click here to claim a copy now!]( [Click Here...]( Four [space stocks]( show promise entering 2023 as war rages in Ukraine. Despite a handful of space stocks showing promise, many others in the industry struggled in 2022. Indeed, the past year was marred by poor performance of special-purpose acquisition companies (SPACs) that operate as shell organizations to merge with private companies. SPACs, an alternative to traditional initial public offerings (IPOs), typically have no tangible assets other than the cash they obtained from investors. Transactions involving private companies going public through a combination with a SPAC are called de-SPACs. Long Beach, California-based [Rocket Lab]( (NASDAQ: RKLB) became the best-performing de-SPAC last year in the space industry among the stocks tracked by BofA Global Research, yet RKLB still underperformed the S&P 500 by 50 percentage points. The worst-performing name in BofAâs coverage universe, Astra Space (NASDAQ: ASTR), traded down 94% during 2022. âWe believe the strong underperformance of these names can be attributed to a multitude of factors -- general de-SPAC discount, limited institutional ownership and pre-earnings nature of most businesses,â according to BofA. "However, we see several factors that point to an inflection on the horizon for some, but not all, space names." Four Space Stocks Show Promise, Especially Iridium McLean, Virginia-based [Iridium Communications]( Inc.âs (NASDAQ: IRDM) CEO Matthew Desch and Vice President of Investor Relations Ken Levy met with analysts at Chicago-based investment firm William Blair on Jan. 17 to discuss a [Qualcomm Inc](. (NASDAQ: QCOM) Snapdragon Satellite (QSS) partnership. The Iridium leaders emphasized that their companyâs core business was growing 10% annually, before factoring in the new Qualcomm smartphone partnership. William Blairâs analyst Louie DiPalma described the Qualcomm partnership as ânet incrementally positive.â Iridium shares are already up 18% year-to-date on top of its 25% return in 2022. Despite the valuation increase, the investment firm forecasts further upside in 2023 to a range of $63 to $78, up from the investment firmâs prior projected range of $60 to $75. Iridiumâs stock closed at $59.58 in afterhours trading on April 24. Chart courtesy of [www.stockcharts.com]( [Iridium]( third in-orbit satellite constellation may cost less than the $3 billion required for Iridium NEXT. [Iridium]( spent $3 billion to fund its 66-satellite constellation from 2010 through 2019, before it likely will have another hefty capital expenditure from 2030 through 2037. Desch estimated that the companyâs third-generation constellation should cost less than the $3 billion it paid for the NEXT constellation, partly due to SpaceXâs Starship launch vehicle slashing the cost to reach orbit by half. Four Space Stocks Show Promise: Auto Industry Application Iridium management voiced optimism about opportunities associated with the auto sector and machine-to-machine (M2M) data. The auto industry has the potential to generate significantly more usage fees per device than smartphones. Consumer internet of things (IoT) cannibalization should be mitigated by new features. Iridium has consumer IoT messaging partnerships with [Garmin]( (NYSE: GRMN), Zoleo and Bixby. These partners should unveil devices that will let users send and receive picture messages. The enhanced feature, along with an ecosystem of products, should provide differentiation relative to the Qualcomm Snapdragon Satellite partnership and allow the consumer IoT segment to keep its momentum. âCarrier subsidies could be a source of upside,â DiPalma wrote. âCellular carriers or device OEMs such as Samsung may subsidize recreational messaging plans to drive customers.â Iridium will continue to be valued on a sum-of-the-parts basis, DiPalma wrote. First, he estimated Iridiumâs interest in Aireon is worth $4.35 per share. Second, he gave a free cash flow (FCF) multiple of 22 times to 28 times his 2024 FCF estimate of $63 to $78 per share for the next 12 months. The valuation estimates of William Blair do not factor in the smartphone partnership. âWe believe that this FCF yield is warranted due to Iridium's strong competitive moat,â DiPalma wrote. âIn our view, Iridium deserves this premium multiple due to its record of execution and new products and services in the pipeline.â Four Space Stocks Show Promise: Iridium Rated âOutperformâ For these reasons, William Blair reiterated an âoutperformâ rating on Iridium. The main risk for Iridiumâs stock is that its smartphone technology experiences quality of service issues or Samsung does not initially adopt the satellite service. Iridium is the leading global provider of low Earth orbit L-band satellite services for customers across commercial, aviation, recreation, maritime, and defense markets. Environmental, social and governance (ESG) considerations should be accounted for when assessing Iridium. The most important considerations for Iridium and the satellite sector generally relate to space sustainability and the risks associated with orbital debris and orbital collisions. Consider the de-orbiting process for the original Iridium satellite constellation. Working satellites were removed within 30 days of service being turned off. However, there are many nonworking Iridium satellites that remain in orbit. Iridium has collaborated with the Combined Space Operations Center (CSpOC) to develop optimal practices for collision mitigation. Iridium publishes an annual ESG report. In 2021, Iridium appeared on Newsweekâs âAmericaâs Most Responsible Companiesâ list. [[Ex-CIA Economist Issues Dire New Warning to America]( Is President Bidenâs worst disaster just beginning? A former CIA Official is coming out of the shadows to expose what Biden is REALLY doing â including the recent stop on Bidenâs friendship tour with the axis of evil. So if you care to find out what he uncovered about this administration -- and why it has the potential to be the biggest scandal of Bidenâs career... [Go here]( for his stunning prediction â in what he's calling The Biden Disaster Plan. [Click Here...]( Four Space Stocks Show Promise: Leidos Holdings Reston, Virginia-based [Leidos]( (NYSE: LDOS), a science and technology company, has been awarded prime contracts by the U.S. Army. One example is the Geospatial Center's (AGC) High-Resolution Three Dimensional (HR3D) Geospatial Information Operation and Technology Integration program. That single-award contract has a total estimated value of $600 million, if all options are exercised. The period of performance for the contract includes a one-year base, as well as three one-year options. Work will be performed predominantly in Virginia and other locations. Chart courtesy of [www.stockcharts.com]( Leidos, previously known as Science Applications International Corporation, serves the U.S. defense, aviation, information technology and biomedical research industries. The company also provides scientific, engineering systems integration and technical services. Four Space Stocks Show Promise: BofA Recommends Leidos BofA set a price target of $130 on Leidos, forecasting that the company should trade in line in the defense prime contractors amid strong U.S. national security demand for innovative technologies and solutions. The company also has solid free cash flow, countered by a lumpy contract award environment, near-term supply chain pressures and mounting concerns about labor inflation. Risks to reach the price target include cuts to the U.S. government budget, compared to expectations, increased competition from non-traditional competitors and problems integrating mergers and acquisitions (M&As), hiring the right personnel, containing costs, estimating costs and executing on fixed price contracts. The company also could face reputational risk. Potential outperformance could come from a better-than-expected federal budget allocated to innovative technologies and modernization, inexpensive and well-integrated M&A activity, along with unexpected capital return to shareholders through dividends or share buybacks, market share gains, or better-than-forecast margin, BoA wrote. Michelle Connell, who leads Dallas-based [Portia Capital Management](, recommends Leidos as a strong mid-cap defense stock that is not covered as prominently as the large-cap stocks in the industry. The company has a large domestic customer base that produces 90% of its revenues. LDOS has a record for beating earnings estimates, and it is likely to beat estimates again on Feb. 15 when the company reports, Connell said. âThe options market has an interesting take on the stock,â Connell said. âWhen you break down the part of the premium that compensates for implied volatility, the compensation is high for the Feb. 17 calls.â This means that the options market expects a big move one way or another for the stock, Connell said. Given that Leidos typically exceeds expectations, it would be logical for the stock to outperform estimates. With the company's stock price down 7.5% so far this year through Tuesday, Jan. 24, maybe the market has been incorrect in its recent assessment, Connell continued. Four Space Stocks Show Promise: Skousen Questions SpaceX Chairman Elon Musk [Mark Skousen]( the head of the [Forecasts & Strategies]( investment newsletter, also is a leader of the [Fast Money Alert]( trading service that invests in stocks and options. Skousen queried SpaceX and [Tesla]( (NASDAQ: TSLA) founder [Elon Musk]( at the annual Baron Investment Conference held in New York on Nov. 4. Skousen, who also is a Chapman University Presidential Fellow and recently was named the first Doti-Spogli Chair in Free Enterprise at its [Argyros School of Business and Economics](, recommended Tesla with Jim Woods in [Fast Money Alert]( this month due to the stockâs reduced valuation after it plunged 66.3% in the last year. Mark Skousen, a scion of Ben Franklin and chief of [Fast Money Alert]( meets Paul Dykewicz. Skousen and Woods, co-leaders of the [Fast Money Alert]( trading service, combined to produce a short-term gain of nearly 10% with their Oct. 3 recommendation of defense, space and cyber consulting firm Booz Allen Hamilton (NYSE: BAH), of McLean, Virginia. The call options they recommended soared 239.27% in just 28 days before they advised selling. [[Surprise Yourself, Predict Trends with A.I.](]( Imagine a trading tool powered by A.I. to help you search, pick and predict stocks 1 - 3 days ahead with up to 87.4% proven accuracy. Because risking your money without the best trading tool in the market is no way to start the year. [Count Me In - >]( [Click Here...]( U.S. Military Veteran Woods Seeks out Defense and Space Stocks on the Ascent Woods, a seasoned investment guru and the leader of the [Bullseye Stock Trader]( advisory service, recommends stocks and options that include defense and space stocks. Woods, who concurrently heads the [Intelligence Report]( investment newsletter, is a former Army paratrooper who has invested in defense and space stocks profitably. In fact, he recently recommended the stock and options in a traditional defense investment. Paul Dykewicz meets with Jim Woods, head of [Bullseye Stock Trader](. Four Space Stocks Show Promise: Rocket Lab Rocket Lab received a $13 price objective from BofA, based on a long-term discounted cash flow (DCF) of Base, Bull, and Bear cases for different revenue and cash generation scenarios between now and 2035. BofA's DCF factors in a 13% discount rate and assigns 33% probability to the Base case, 33% probability to the Bull case and a 33% probability to the Bear case. BofA employs a lower discount rate relative to peers to account for the company's more mature launch capabilities. In its view, the equal weighting fairly reflects current investor risk appetite, momentum for new technology space stocks and the perceived viability of Rocket Lab's business model compared to peers. Risks to BofA's price objective are persistent COVID-19 restrictions in New Zealand, production delays, constellation launch market remaining captive to certain providers, setbacks to the economic recovery, inability to achieve mergers and acquisitions (M&A) synergies and setbacks to Neutron vehicle development. Potential outperformance could come from better-than-expected cost cutting and margin expansion, well-integrated M&A activity, market share gains in satellite components and services, higher reutilization levels and better-than-expected commercialization of the Neutron launch vehicle. Chart courtesy of [www.stockcharts.com]( Four Space Stocks Show Promise: Terran Orbital BofA values Boca Raton, Florida-based Terran Orbital Corporation (NYSE: LLAP) based on a long-term unlevered discounted cash flow (DCF) using Bull, Base and Bear cases, assigning an equal weighting to each scenario. The investment firm's DCF extends for 10 years. Terran Orbital's revenue growth, margin growth and capital expenditure assumptions by scenario are primarily driven by assumption differences within Earth Observation Solutions, where revenues are mostly dependent on the number of satellites in orbit. BofA's bull case assumes a constellation of 96 satellites. The base case assumes 48, while the bear case assumes 24, all achieved by 2029. As a result, BofA derives a price target of $9 per share, which is based on a 9.9% discount rate. The investment firm applies a $0 value in scenarios where the value is negative. In this model only, the Bear case returns a negative value. Risks could come from not building out the PredaSAR constellation or if the demand for SAR imagery does not come to fruition. Damage to the relationship with Lockheed Martin (NYSE: LMT) could also provide downside pressure. However, if the company is able to grow faster than BofA expects, then there could be heightened upside potential. Chart courtesy of [www.stockcharts.com]( China COVID-19 News Last weekend, China reported 13,000 COVID-19-related deaths in just one week. The death toll from that week is in addition to 60,000 deaths that the country has attributed to the virus since December. With many people in China returning to their hometowns to celebrate the Lunar New York, the country's most important festival, risk mounts that elderly people may be infected by COVID-19 from those visiting from elsewhere. Government officials have cautioned about the risk. In general, the country has been accused of lacking transparency since the virus emerged in late 2019. Critics contend China may not be sharing data about evolving strains that may spark fresh outbreaks in other countries. Along with the United States, Japan, India, South Korea, Taiwan and Italy have announced passengers from China will need to test negative for COVID. An internal meeting of China's National Health Commission estimated that up to 248 million people contracted the coronavirus during the first 20 days of December. COVID-19 still is [roaring through cities]( in China. The U.S. government began requiring negative COVID-19 tests starting Thursday, Jan. 5, for all passengers seeking to enter the country from China after the latter country's spike in COVID-19 cases. France and several other countries also mandated clean COVID-19 tests for passengers arriving from China, reflecting global concern about [new variants](. Four Space Stocks Show Promise Despite COVID Worldwide COVID-19 deaths soared to 6,741,826 people, with total cases of 669,247,236, [Johns Hopkins announced on Jan. 24](. COVID-19 cases in the United States totaled 102,078,090, while deaths reached 1,105,176, as of Jan. 20, according to [Johns Hopkins University](. Until reports found China had 248 million cases of COVID-19, America had ranked as the nation with the most coronavirus cases and deaths. The [U.S. Centers for Disease Control and Prevention]( reported that 268,765,902 people, or 81.0% the U.S. population, have received at least one dose of a COVID-19 vaccine, as of Jan. 18. People who have completed the primary COVID-19 doses totaled 229,08,443 of the U.S. population, or 69.1%, [according to the CDC](. The United States has given a bivalent COVID-19 booster to 47,859,040 people who are age 18 and up, equaling 18.5% as of Jan. 18, up from 18.2% on Jan. 11, 17.7% as of Jan. 4, 17.3% as of Dec. 28, rising from 16.8% the previous week, up from 16.3% the week before that one and and jumping from 15.5% the preceding week. Ukraine's President Volodymyr Zelensky's secret Dec. 21 flight to Washington, D.C., let him to speak face-to-face with U.S. President [Joe Biden]( to advocate for essential military equipment to defend effectively against Russiaâs continuing attacks. Zelenskyâs address to a joint session of Congress that evening appears to have won support of many U.S. lawmakers. The surprise visit marked Zelenskyâs first international trip since Russia's invasion. Russia is sustaining its onslaught of intensified strikes that began in October, [targeting Ukraineâs energy]( and civilian infrastructure. Four Space Stocks Show Promise Amid War Against Ukraine Even though Russia's leaders describe their attack of Ukraine launched on Feb. 24 as a âspecial military operation,â its soldiers are intensifying their assault of Ukraine, especially the city of Bakhmut. One of Russiaâs military leaders claimed his troops had gained control of a nearby city in eastern Ukraine called Soledar. Secretary of Defense Lloyd Austin recently cautioned that time is short for the United States and other Western countries to provide Ukraine with the advanced weapons required to thwart a Russian offensive in the spring. Ukraine not only needs the weapons but training to use them. The Ukraine Defense Contact Group, a group of U.S.-assembled defense ministers, announced major new commitments of weapons, including an additional $2.5 billion of Bradley fighting vehicles, Stryker vehicles and other important military equipment. The four space stocks show promise to assist in many ways, including in-orbit surveillance of battlefields. Billions of dollars of Western weapons have been sent to Ukraine and others reportedly are on the way. With Russia's military releasing criminals to serve in the front lines of attacks to let commanders identify pockets of Ukrainian resistance, then have contractor soldiers follow up next, the death toll is mounting for both sides. Sincerely, Paul Dykewicz, Editor
[StockInvestor.com]( About Paul Dykewicz: Paul Dykewicz is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, Seeking Alpha, GuruFocus and other publications and websites. Paul is the editor of [StockInvestor.com]( and [DividendInvestor.com]( a writer for both websites and a columnist. He further is the editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul also is the author of an inspirational book, "[Holy Smokes! Golden Guidance from Notre Dame's Championship Chaplain](", with a foreword by former national championship-winning football coach Lou Holtz. Follow Paul on Twitter [@PaulDykewicz](. mailto:CustomerService@EagleFinancialPublications.com About Us:
Eagle Financial Publications is located in Washington, D.C. – only a few blocks from the Capitol. Our products have been helping investors build their wealth for several decades. Whether you’re a long-term investor or short-term trader, you’ll find the right strategy for you, including how to earn more steady income to spend now, preserve and grow your capital to enjoy later, and whatever other investment goals you have. Visit Our Websites:
- [StockInvestor.com](
- [DividendInvestor.com](
- [BryanPerryInvesting.com](
- [JimWoodsInvesting.com](
- [MarkSkousen.com](
- [RetirementWatch.com](
- [InvestmentHouse.com](
- [SeniorResource.com]( To ensure future delivery of Eagle Financial Publication's emails please add the domain @info2.eaglefinancialpublications.com to your address book or contact list. This email was sent to [{EMAIL}](MAILTO:{EMAIL}) because you are subscribed to the Eagle Stock Investor Insights List. To unsubscribe please click [here](. View this email in your [web browser](. If you have questions, please send them to [Customer Service](mailto:customerservice@eaglefinancialpublications.com?SUBJECT=Question about _ELETTERS Stock Investor Insights). Eagle Financial Publications - Eagle Products, LLC. - a Salem Communications Holding Company
122 C Street NW, Suite 515 | Washington, D.C. 20001 © Eagle Financial Publications. All rights reserved. [Link](