Own “Stellar” Real Estate in This Final Frontier

My projections show that no fewer than 45,000 new satellites will be launched into space in the next five years.

It’s a massive undertaking… involving a lot of new ideas, a lot of new technology and a lot of new opportunities.

Companies getting involved in new space innovations will be in a great position to do very well for themselves.

Here are three of my favorites right now…

Stellar Satellite Play No. 1: Picture This $1 Billion Business

They say a picture is worth a thousand words.

Well, this satellite company’s pictures are worth $1.1 billion!

Maxar Technologies (NYSE: MAXR) provides intelligence and infrastructure solutions to governments and private industry clients around the world.

It operates through two business segments: Earth Intelligence and Space Infrastructure.

The Earth Intelligence segment offers Earth imagery, radar data solutions and geospatial intelligence products. (For the most part… we’re talking spy satellites for government agencies in the U.S. and internationally.)

The Space Infrastructure segment provides space and ground-based satellite systems and infrastructure. Its offerings include communication and imaging satellites and payloads; space platforms for power, propulsion and communication; and space-based and airborne remote sensory solutions, space robotics, and defense systems. This segment serves government agencies and commercial satellite operators.

A Small Company With Big Customers

Based in Colorado, Maxar has been in business in one form or another since 1957. It has built a strong reputation and a large following.

In fact, the company counts Uncle Sam among its biggest clients.

It offers government agencies not only ultra-secure communications but also superior imaging capabilities.

When the U.S. government wants to know what is happening on the ground in some far corner of the globe, it likely uses a Maxar satellite.

With Maxar’s help, the U.S. government can get a clear view of what’s happening around the world. (Plenty of other governments are Maxar’s customers as well.)

The level of detail is extraordinary – and getting better all the time!

The resolution of Maxar’s satellites is better than 30 centimeters per pixel – a level of clarity far beyond that of a standard satellite image.

Maxar also has a long list of international government customers that will continue to be reliable buyers. In 2020, the company brought in more than $1.6 billion in sales.

The company has a huge backlog of business – $2.2 billion – that will keep revenue pouring in through at least the end of 2022.

That’s more than enough reason to add Maxar to your portfolio…

But Maxar is also beginning to benefit from the coming 6G revolution.

Building a 6G Network

Over the course of 2020, Maxar was awarded six contracts to build six geostationary communications satellites for Intelsat (OTC: INTEQ), the operator of the world’s largest integrated satellite and terrestrial network.

This long-term contract is likely worth more than $200 million to Maxar.

Intelsat’s goal is to increase its bandwidth and spectrum for its global wireless services. That likely means more business is headed Maxar’s way.

In fact, Maxar’s president and CEO, Daniel Jablonsky, said the increased backlog was primarily due to an increase in its Space Infrastructure segment as a result of new awards during 2020.

Additionally, companies are now using Maxar’s detailed images for state-of-the-art artificial intelligence, machine learning, navigation and virtual reality modeling, and graphics – another reason to expect more business for Maxar.

At the same time, Maxar is working to strengthen its balance sheet.

The company has been divesting unprofitable business segments and acquiring compatible businesses. It is also reducing its debt and has extended the maturity on much of its remaining debt.

Maxar is going to make an excellent partner for anyone looking to join the 6G revolution.

Action to Take: Buy Maxar Technologies (NYSE: MAXR) at market. Use our standard 25% trailing stop.

Stellar Satellite Play No. 2: The Tesla of Space

Investor’s Business Daily calls Virgin Galactic Holdings Inc. (NYSE: SPCE) the “Tesla of space.”

The mission for Virgin Galactic’s Spaceship Company is to be the world’s first commercial spaceline.

Its goal is to offer everyone the opportunity to become a private astronaut and experience the wonder of space.

Virgin Galactic is an offshoot of Virgin Group, a conglomerate founded by the dynamic visionary Richard Branson.

Virgin Galactic defines itself as an integrated aerospace company… but its primary aim is to commercialize space travel by developing spacecraft for both private individuals and researchers.

There is clear excitement circling Virgin Galactic about its passenger-carrying “spaceship vehicles” that can fly you (or anyone willing to pay up) to space, without the need for expertise or exhaustive training.

Going Up

Now, let me be perfectly clear… this is your classic “story stock.”

You’re not buying this one based on the fundamentals. There are hardly any revenues and no earnings. (It does have a strong cash position, with cash and cash equivalents of $360 million.)

But that’s not stopping early investors from piling in.

Like with Tesla (Nasdaq: TSLA) in its early days, people love Virgin Galactic’s concept and the dynamic leader behind it… Richard Branson.

Branson is an eccentric billionaire who is well-known for his larger-than-life personality. While he spends a lot of his vast fortune on charity, he also goes on highly publicized adventures.

Among other things, he’s tried to break the record for sailing across the Atlantic Ocean, driven across the English Channel in an amphibious car and attempted to fly around the world nonstop in a hot air balloon.

Today, Branson’s passion project is Virgin Galactic and competing with the likes of NASA and SpaceX.

The Federal Aviation Administration has issued this futuristic company a reusable launch vehicle license. And the company has signed a Space Act Agreement with NASA’s Johnson Space Center. And Virgin Galactic is part of the NASA Flight Opportunities program.

Hundreds of customers are already lined up for flights into space, paying as much as $500,000 for the opportunity.

The company reported that it has received 8,000 deposits and has approximately 600 “future astronauts” waiting for their opportunity.

Located on 27 square miles of desert landscape in New Mexico, Spaceport America is Virgin Galactic’s human spaceflight headquarters and center of flight operations.

Virgin Galactic is conducting glide testing on its space vehicles, and final preparations are being made for passenger flights. State COVID-19 restrictions have temporarily delayed additional test flights. But as soon as restrictions are lifted, Virgin Galactic plans to schedule its flights.

Branson wants to be the first passenger and anticipates that flight to take place in the second half of this year.

So it’s only a matter of time before Virgin Galactic’s future astronauts are participating in space flight.

Like Tesla is doing with automobiles, Virgin Galactic is making a name for itself in innovative space travel… and investors will race to grab a piece of it.

Action to Take: Buy Virgin Galactic Holdings Inc. (NYSE: SPCE) at market. Use our standard 25% trailing stop.

Stellar Satellite Play No. 3: Picks and Shovels for the Space Race

America is engaged in a fresh space race.

While most folks are excited about the potential of 5G… the clear next step is widespread satellite communications.

Everybody from Elon Musk to Jeff Bezos to Tim Cook is pushing hard for it. They all want to improve communications with their customers, cut costs and increase profits.

That’s good news for EchoStar (Nasdaq: SATS). It provides broadband satellite technologies and broadband internet services worldwide.

It operates in two segments: Hughes Network Systems and EchoStar Satellite Services (ESS).

The Hughes segment offers broadband satellite technologies and internet services for homes and small- and medium-sized businesses. This segment also provides satellite infrastructure equipment to satellite system providers.

The ESS segment provides satellite services using its owned and leased in-orbit satellites to the United States government, internet service providers, broadcast news organizations, content providers and private enterprise customers.

EchoStar provides a one-stop shop for Tesla, Amazon and Apple to get into the satellite business. It supplies all the components (the picks and shovels, so to speak) these budding 6G players need.

I’m a big fan of the company, and the stock is at an ideal buying opportunity. EchoStar is perfectly positioned to benefit from 6G.

It’s a leader in satellite-based broadband internet services. And with EchoStar’s ties to Dish Network and the infrastructure it has in place, it will remain that way for a long time.

But 6G is ready to take EchoStar’s stock price to the moon…

There Are Some New Players in the Game

One thing is for sure – any company that helps Tesla, Amazon or Apple get its Wi-Fi off the ground (literally) will enjoy a tidal wave of new revenues… and a soaring stock price.

EchoStar is near the top of my list of potential partners.

It has been in the satellite game in one form or another since 1980.

At first, it focused on the land-based side of the business – selling the equipment people needed to receive satellite broadcasts.

In 1995, it launched its first satellite. And a year later, it created the Dish Network, broadcasting premium television shows and movies directly into people’s homes.

But EchoStar has quietly been working on bigger plans.

In 2011, it bought Hughes Communications – one of the pioneers of satellite internet services. Hughes is now the leading provider of satellite broadband services, controlling 69% of the market.

And in 2019, EchoStar decided to step away from the “less strategic and negative growth” of television broadcasts to focus on the “growing broadband end market.”

It sold its television satellites back to Dish and got to work expanding its wireless internet offerings.

The first thing it did was buy Helios Wire Corp., a company that specializes in making satellite internet connections to terrestrial devices – the often-mentioned Internet of Things.

Today, EchoStar has interests in 10 satellites that are orbiting Earth, with two more expected to go up in the next six months.

More importantly, the company’s management has made its goal clear:

We plan to leverage our innovations in technologies and services to pursue strategic opportunities for long-term growth – whether organically, by acquisition or through strategic partner alliances.

In other words, EchoStar plans to make 6G a reality.

Its wealth of experience and know-how will appeal to Apple, Amazon, Tesla, Google and any company trying to ramp up its 6G system capabilities.

And EchoStar’s stock will soar when it does!

So I suggest adding it to your portfolio today.

Action to Take: Buy EchoStar (Nasdaq: SATS) at market. Use our standard 25% trailing stop.

A 6G Future

My goal is to get you ahead of the curve as 6G rolls out.

Just keep in mind that when it happens, it will take most investors by surprise.

People will suddenly rush to buy stocks on the cutting edge of the 6G industry… pushing prices up in a hurry.

To beat the rush, you should get into position now while stock prices are still relatively cheap.