Are you a growth investor? If so, the wealth-creation opportunities afforded by Maxar Technologies (TSX: MAXR)(NYSE: MAXR) are likely already on your radar. Whether you happen to be a NASA nerd, or you’re simply looking for the Next Big Thing, Maxar is a tempting play. One of the strongest space tech stocks, Maxar has seen huge share price growth this year.
SpaceX is another hot company for space investors to salivate over. However, up until now, the only way for stockholders to invest in SpaceX was tangentially — through sister company Tesla. JPMorgan has come up with a workaround, though. The investment bank is getting ready to launch a team that will connect sellers and investors in the market for private company shares. And that could include SpaceX.
Regarding a SpaceX offshoot, CEO Elon Musk recently tweeted, “We will probably IPO Starlink, but only several years in the future when revenue growth is smooth & predictable.” It’s an exciting prospect, and one that highlights an important fact: early space investment is all about communications. Not colonizing Mars, or exploring for water on the Moon, or even mining near-Earth objects for minerals.
A revolutionary stock for early space investing
In other words, the first rash of momentum from the space industry will revolve around satellites. And that brings us back to Maxar. Tasked with building the Galaxy 37 for Intelsat, Maxar is fast emerging as a leading name in the satellite communications space. anybody interested in the growth opportunities of 5G should take note of this NASA-partnered space tech market leader.
Buying Maxar shares is a canny workaround for would-be shareholders in a SpaceX or Starlink IPO. One of its greatest advantages is its track record. Having years of available data means that investors can identify entry points, for instance.
Indeed, one problem with event-driven momentum investing is that by the time you’ve heard of an opportunity, it’s too late. That’s why the trick is to see the opportunity before it presents itself. Look at the possibility of another Musk-backed ticker on the markets, for example. Now identify whether another stock already does the same thing. Then buy the pre-existing alternative and wait for the reflected upside.
It’s a strategy that might not glean the kind of sudden growth that an IPO or overnight development might bring. But this type of play still brings the promise of upside while removing the necessity to time the market. Indeed, getting the timing right on a sudden multibagger event is elusive at best and impossible at worst. By stashing an alternative, though, investors can stay ahead of the game.
And if that Starlink IPO never comes? Well, then an investor will still own shares in a quality company — Maxar, to use this example — with its own growth trajectory. And, to stay with Maxar, the growth potential here is vast. While it’s decidedly cooled off during the summer, Maxar has seen share price appreciation of 230% in the last 12 months. And that could just be the beginning.
