Go To

1 Reason To Avoid Virgin Galactic – Unless…

1 Reason To Avoid Virgin Galactic – Unless…?

Over the last couple months, I’ve shown you stocks to avoid…

Stocks to consider buying…

And some of the best stocks related to the coming Internet of Things…  Which you can find linked further below.

All these recommendations are to help you either avoid pain and terrible stocks.  Or to help you find potentially great stocks to invest in during this pandemic.

Doing both will help you earn higher than average investment returns and build your wealth.

This is a huge part of things.

But another huge part of this is also losing as little capital as possible.

The fewer investment losses you have the more capital you keep. And the more capital you keep the faster you can invest well to grow your wealth.

But most only think of investing well. 

Today, I want to show you 1 Reason To Avoid Virgin Galactic – Unless…

1 Reason To Avoid Virgin Galactic – Unless…

Normally in these articles I talk about profitability, cash flow, the affects coronavirus is having on a company’s financials among other things.

But frankly none of those matter much with Virgin Galactic (SPCE) because it’s essentially a brand-new start up in terms of the numbers.

Its barely generating any revenue.

Its burning through a ton of cash and is unprofitable to a large degree on all metrics.

Its balance sheet strength is almost non-existent due to the start up nature of the business.

And on a numbers basis its 100% NOT a stock to buy right now…  Or is it?

I greatly admire Richard Branson as a businessperson, entrepreneur, and investor.

I’ve read 2 of his autobiographies.

And in my opinion, he’s one of the best and most visionary business builders of our lifetimes up there with the likes of Elon Musk.

Who both literally want to take us to other worlds.

Plus, I personally love space, technology, and everything related to what both are trying to do.

On a numbers and business basis, Virgin Galactic is 100% not an investment I’d ever recommend you buy. 

You can’t invest on emotions… It needs to be based on hard data and rationality.

In this case I will make one slight exception though.

The only way you should buy Virgin Galactic right now is as a completely emotional speculation.

You should be prepared to lose 100% of your money. You should be 100% prepared to buy this stock and hold for 20+ years. And you should make it a small part of your portfolio.

If you love space, admire Richard Branson, and want to invest in the coming Space Investing Boom… You should consider investing in Virgin Galactic.

But only if you’re comfortable with the above… Because essentially you’re buying a lottery ticket if you do invest here.

Miniscule chance of success… With an enormous probability of failure.

There’s nothing to go on other than Richard Branson’s past entrepreneurial record.

How little to go on?  Virgin Galactic currently has a market cap of $6.1 billion while it produced only $4 million in revenue in the last 12 months.

I hope this company succeeds… I hope we get to go to the Moon and Mars and build colonies on both soon… And I hope this stock takes off for you.

But I cannot recommend you buy it today… Even though I emotionally want to.

Use the following links to some of our recent articles to learn other ways to protect yourself and your investments in these uncertain times. 

Disclosure – Jason Rivera is a 13+ year veteran value investor who now spends much of his time helping other investors earn higher than average investment returns safely. He does not have any holdings in any securities mentioned above and the article expresses his own opinions. He has no business relationship with any company mentioned above

Comments are closed.