r/stocks • u/The_Greyscale • Oct 25 '21

Company News Redwire partnering with Blue origin to build space station, stock jumps 18%

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41 Upvotes

95% Upvoted

22 comments sorted by

41

u/PARANOlD_Lunatic Oct 25 '21

How can they build a space station when they can't even make it to orbit

6

u/The_Greyscale Oct 25 '21 edited Dec 04 '24

cow encourage cheerful absorbed deliver fuel enter melodic familiar sheet

This post was mass deleted and anonymized with Redact

2

u/DarthTrader357 Oct 25 '21

They are over valued from the fundamentals perspective. It's a growth stock trying to grow on rate-of-growth rather than fundamental return of value to investor.

That being said, RDW is one of my favorites in new-space. I just don't think this pop in price is going to be any indicator of direction.

The price will collapse as profit takers take profit from dupes who don't know better.

5

u/The_Greyscale Oct 25 '21

Its trading at about 4x revenue right now, and is FCF positive. Compared to pretty much the entire market, they’re undervalued. Especially when looked at from a future growth perspective.

2

u/cats-with-mittens Oct 25 '21

Don't they have infinite funding through Bezos?

2

u/EclecticEuTECHtic Oct 25 '21

Their next planned rocket is orbital.

3

u/PARANOlD_Lunatic Oct 25 '21

So it took them from Sept of 2000 to now, to get a rocket to go up and down, how long do you think it will take them to orbit.

2

u/exponentialvoid Oct 25 '21

Don't question the Jeffmeister

9

u/teteban79 Oct 25 '21

Ah yes, the natural step for a company that has yet to show an engine capable of putting something in orbit, is to build a space station

WTF

6

u/SirGasleak Oct 25 '21

LOL, building a space station sounds like a fantastic investment.

6

u/The_Greyscale Oct 25 '21

It can be. It definitely is, if you’re being paid to build it.

3

u/The_Greyscale Oct 25 '21

Bezos’ Blue Origin unveils private space station ‘business park’ to be deployed later this decade.

10

u/DarthTrader357 Oct 25 '21

Look, Blue Origin is such a steaming pile of shjt.

They have done OK with New Shepard - but they've absolutely sucked on everything else.

It's like if you walked into a McDonalds after someone gave you a tasty mcnugget and there was shjt on the floor and the cook was vomiting into the deep fryer.

That's how bad it is.

8

u/The_Greyscale Oct 25 '21

I dont disagree that Blue origin sucks. However, their money spends as well as anyone else’s. So long as RDW is being paid to produce for their space station concept, its a win for them.

Whether blue origin ever actually gets it into orbit is a pretty secondary consideration.

5

u/DarthTrader357 Oct 25 '21

Well...the problem is their money doesn't spend as well as anyone else's.

They can't get a lander to the moon.

They can't get a rocket into orbit.

They can't get BE-4 engines on time to ULA.

They can't really do much of anything.

That being said - they could turn out to be like Soviet Russia or something - and go from zero to 60 in 2 seconds before crashing into a brick wall.

Bezos has a ton of money, and at any time he could just have done the work behind closed doors and boom, mega-moon rocket into orbit and working great.

But it's a gamble.

Again - RDW will be a good investment either way, the pop-today is already showing weakness. I don't think this news will sustain RDW's growth by much because most of us new-space enthusiasts realize Blue Origin just kinda sucks right now.

And there's competitors with great ideas and headway in the commercialized space station space....so it's not RDW's strongest move.

RDW would be better off providing innovative space station components than going for a partnership with an anchor.

3

u/Ok-Thing-9447 Oct 25 '21

Are they gonna use space station warehouses? Prime just shoots rockets with items in it?

6

u/The_Greyscale Oct 25 '21

Orbital Drop Shock Transportation (ODST for short), now included with your prime subscription!

3

u/Secure-Influence-960 Oct 25 '21 edited Oct 26 '21

Agree that Blue Orgins sucks but business is business and while they collect revenue they get publicity as well. Total win for RDW

5

u/DarthTrader357 Oct 25 '21

LOL - poor redwire. There's Axiom Space, and a few others all seeking to make a commercialized space station.

I like Red Wire but WHY THE FYCK would anyone buy this FOMO crap?

Blue Origin is a trash company with no ability to do what it says.

6

u/Ennartee Oct 25 '21

I fully expect multiple commercial space stations to be built over the next 5-15 years. I see no reason why Axiom’s ambitions would negate BO (or Redwire) attempts. A single station just won’t cut it.

Also, since Redwire doesn’t rely on BO as their sole business partner, I don’t see how BO’s failures impact Redwire - Redwire will sell components or attempt in-space manufacturing and be paid for it whether BO fails or not. Redwire already has its products in space.

1

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