Investing in the Space Race

Commercial space travel, space infrastructure, and satellite broadband are just a few of the areas where the space industry is foraying into the private sector today. And news of billionaires like Richard Branson and Jeff Bezos soaring into space has certainly caught the attention of investors worldwide.

There is a growing sentiment that space is finally opening up to commercial ventures. And for the smart investor, there are profits to be had. However, before you start switching up and shuffling your resources and portfolios, you need a good grasp of which stocks have the right potential.

With that note in mind, here are some of the most prospective space-related stocks that you should consider today.

 

Virgin Galactic Holdings (SPCE)

Virgin Galactic remains one of the biggest names as far as space tourism is concerned. With owner Richard Branson becoming the first man to visit space on a self-funded rocket, the company is holding its own against the biggest private players in the space industry. So, the potential for growth and possible returns on early investment certainly look good for many investors.

Prior to its first space flight back in July, Virgin Galactic (SPCE) shares grew by more than 200% in the preceding couple of months. But as Virgin announced their intention of selling $500 million in stock, they experienced about 17% drop in stock prices. Most analysts believe that this trend is a temporary shift that will change as the stock markets look ahead. And drops like these are inevitable because investors don’t want their existing positions diluted any further.

At the time of putting together this article, Virgin Galactic (SPCE) stocks closed around the $31.50 mark. At first glance, this initial figure appears to be a decrease if you compare it to the $60 highs they experienced earlier this year. But SPCE stocks were worth less than $18 around this time last year. So, the growth over the last year is clear and unmistakable. And if you consider how the market cap has grown to $7.41 billion, there’s no doubt that SPCE stocks are on a steady rise.

As the company is set to make commercial space travel a reality, celebrities and billionaires alike are seeking to buy the $450,000 tickets that Virgin Galactic plans to sell. So, for anyone looking to invest wisely in the space race, this one certainly looks good.

Astra Space (NASDAQ: ASTR)

Astra Space is a startup that’s rubbing shoulders with big players like Virgin in the market today. It has already secured contracts of over 50 launches to date. But a recent development has made a huge difference in the way investors see this company – a lucrative contract with the US DOD.

This particular contract was signed with Space Force, which is part of the US Department of Defense. It’s an agreement that includes multiple launches. As a result, Astra Space stock is experiencing increases of up to 30%. Of course, these are short-term bursts that may or may not sustain. But most experts expect a steady increase from here on out. Of course, there are no guarantees with space related stocks (like any other stock). However, Astra Space is surely worth looking into.

Stock prices for Astra Space recently closed at $10.20. And with an impressive market cap of over $2.1 billion, it’s no pushover in the space race. The Department of Defense is probably banking on low-cost, responsive launch capabilities from this space startup. And a few of the programs and tests are scheduled within this year. The first test payload launch for this contract should happen around late August. So, you can expect more developments in stock trends for Astra Space in the immediate future.

Astra Space, live Virgin Galactic, is leveraging the advantages of SPAC (Special Purpose Acquisition Company), which allows it to raise capital without really going public with the company. Whether or not it will guarantee returns remains to be seen, but Astra’s prospects look much better today than it did last year.

AST Space Mobile (NASDAQ: ASTS)

Investing in space related stocks isn’t just about space travel. High-tech space communications is another emerging sub-industry where the future looks bright. And AST Space Mobile is at the forefront of this niche. ASTS is creating the first-ever cellular network with its infrastructure in space. The aim is to give access to any standard mobile device eventually. This implies that the potential market is huge and ever-growing.

Today, AST Space Mobile has a market cap of over $2 billion, and current stock prices are averaging around $11. This stock price is much closer to the steady $10 or so that it enjoyed throughout 2020. The first half of 2021 was a mini-rollercoaster ride for ASTS. It peaked at over $18.61 during early February and plummeted to $7.3 in early June. But stock prices have rallied once again in the last months, and the steady $10-11 we see today is a much better indication of its reliability. Existing stock holders may expect more turbulence, but you can be sure that they aren’t going to abandon their stakes any time soon.

The world is in a relentless pursuit of data and communications technology. And any new infrastructure that can engage the global market on a better and faster network will do well in the future. There are analysts who still consider the ASTS to be a high-risk and high-reward scenario. So, make sure you get a grasp of the risks before putting big money here.

 

Iridium Communications (NASDAQ: IRDM)

Iridium Communications is another leader in the satellite communications industry. They’re currently run the biggest constellation of communications infrastructure. With 66 low-orbit satellites, their clients include big hitters like the Department of Defense and maritime industries.

IRDM has experienced consistent growth over a long period. There was a clear spike in early 2021 when the stock price almost reached the $50 mark. Other than that, the company has had a reliable and stable increase in stock prices. The price currently sits at $43.83, and the predictable increase has been going on for at least the last five years.

Today, IRDM’s market cap is estimated to be a whopping $5.78 billion, which beats any other space communications company. Given the steady increase in subscribers and clientele, there’s no doubt that Iridium is poised to scale bigger heights in the space race. With great prospects for the long term, investors continue to favor IRDM across the board.

 

Lockheed Martin (NYSE: LMT)

Lockheed Martin continues to be a long-time player in the defense contracts industry. As far as military-industrial names go, it’s among the biggest and most profitable stocks in the market. While aeronautics makes up about 40% of its sales, its space initiatives have also grown to occupy about 18% of sales. Their segment profits for space alone are only about 15%. But if you consider how over 70% of their sales are for the US government, even the space segment has a lot of potential.

Lockheed Martin (LMT) boasts of some of the most impressive stock figures in the market today. The price is currently hovering around the $360 mark. And with a market cap of over $100 billion, it’s up there among the most valuable military-industrial stocks today.

In the last one year, LMT’s lowest stock prices were about $327. The highest peaks during this period were above $390 during Sept-Oct 2020 and May-June 2021. So, you know that their experience and position in the industry give them stability even in the long run.

Investors who don’t want to be a part of military spending may avoid companies like Lockheed Martin. That aside, it’s a solid stock that has a relatively low price. And it could be a great addition to diversified portfolios that span across different industries.

 

Loral Space and Communications (NASDAQ: LORL)

Loral is another competitor in the satellite communications industry that’s worth looking into. Their wide range of customers includes corporate buyers and government clients. With over 15 geostationary satellites in orbit, their products include end-to-end communication infrastructure, DTH, satellite-ground networks, video distribution, etc. So, even at first glance, LORL looks like a stock worth owning for the future.

LORL’s stock is currently sitting at $36.09, which has been more or less stable for 2021. The company experienced some lows during 2020 owing to the pandemic and related changes in market trends. Stock prices for LORL went as low as $16.25 in March 2020. Other than this dip in 2020, LORL stocks have consistently stayed at the $30-40 mark for the last five years or so. Even at $36 per stock, the LORL’s market cap is an impressive $1.1 billion today.

In addition to satellite communication products, LORL also has a consultancy branch that deals with satellite control services, space and earth, and R&D solutions. So, the potential for further growth in the next few years is on the cards.

However, the real-world performance will depend on how they navigate this competitive industry. As with any stock, there are risks that come with LORL stocks. But with careful evaluation, you can diversify your investments with some shares in LORL.

 

Maxar Technologies (NYSE: MAXR)

Maxar Technologies was formed as recently as 2017 with the merging of MDA Holdings Company and DigitalGlobe. Although it’s not the biggest player, it certainly has a presence in on-orbit servicing satellites, satellite products, and earth observation. NASA selected Maxar as the supplier of power and propulsion for their Lunar Gateway.

After a steady price of about $41 in July, Maxar’s stocks experienced a decrease by early August. The company announced a postponement of its imagery satellites. The initial plan was to launch these Worldview Legion satellites by the 4^th quarter of 2021. But the launch date is now delayed to March-June of

 2022. With this development, Maxar stocks now sit at about $30.56.

However, if you consider the progress over a year, it’s still an increase from the $24 figure it hit in the middle and late 2020. And with a market cap in excess of $2.1 billion, Maxar is not going away anytime soon.

Also, the average investor may be worried about the $0.60 earnings per share that got in the 2^nd quarter of 2021. But the $4.94 earnings in 2020 was primarily because the company sold its MDA business. That was a one-time profit that you can’t expect every quarter. So, all in all, Maxar Technologies still looks like a good bet for anyone wanting a taste of space related stocks.

 

Vector Acquisition (NASDAQ: VASQ)

Vector Acquisition is drawing the attention of investors interested in space related stocks. And the recent surge is primarily because of its merger with Rocket Lab USA Inc. With the support of the private equity company, Vector Capital, VASQ raised over$300 million in September 2020. With the added funds, Rocket Lab intends to develop a specific launch vehicle that can send up satellite constellations, support deep space missions, and facilitate easier human space travel.

Compared to the other big space related stocks here, Vector Acquisition appears more modest in comparison. Their stock price currently sits at $10.22 with a market cap of around $408 million. VASQ has enjoyed a steady price of around $10 since December 2020. Excepting a $13.95 spike back in March 2021, their stocks have consistently been stable as far as the price is concerned.

For seasoned investors with space related stocks already in their portfolios, this one may not be the first choice. But with the prospects that come with Rocket Lab, it’s surely a stock worth considering.

 

Northrop Grumman Corp. (NOC)

Northrop Grumman Corp. is better known as a manufacturer of defense technology. But they have a subsidiary that is especially dedicated to in-orbit satellite servicing and space logistics. The company is frequently featured in the Fortune 500s and other lists of successful corporations.

As far as satellite services go, their Mission Extension Vehicle (MEV) is an innovative product. The MEV is at the center of the company’s space logistics program, and it’s a huge reason why investors are rallying towards NOC stocks.

NOC has a market cap of more than $57 billion, which puts most other defense corporations to shame. Their stock price last closed at $358, continuing its stellar run since May 2021. The month of February, this year, saw price dips that went below $290 in some cases. But the ascent began by early March, as the stock value started picking up.

Their second vehicle, the MEV-2, recently made a successful docking on April 12, 2021. Also, their next-generation systems like the Mission Extension Pods provide cost-effective solutions to extending the life of aging satellites. With these new developments, the company is set to make new inroads into the space investment race. And any investor keeping track of NOC’s progress will be on the lookout for investment opportunities.

 

Nokia Corp (NOK)

Most people will be surprised to see Nokia on a list of prospective space related stocks. The telecommunications giant is better known for its domination of mobile phones and electronics throughout the 2000s. But the primary reason it’s here on this list is that NASA has entrusted it with setting up the first lunar cellular network.

Nokia will set up LTE/4G technology that will enable the exchange of consistent, high-volume data on the lunar surface. And communications tech will be a core part of NASA’s Artemis mission which seeks to make human settlements on the moon by the decade’s end.

Nokia’s price has consistently ranged around the $5-6 mark for the last 5-6 years. That makes it an incredibly affordable stock if you consider the $34.6 billion market capitalization that the company commands. There were small dips in March, 2020, but nothing so persistent as to hurt the company’s worth or value.

Also, there has been a steady rise since October, 2020, when Nokia secured the LTE contract for building 4G mobile connectivity for astronauts to use on the moon. The contract is worth over $14 billion. And more importantly, it’s supposed to launch by 2022. So, this means the company’s market value will most likely go up in the next year or so (and subsequently too).

Given their existing hold on telecommunications and their new ventures into lunar mobile networks, any investor would be glad to own shares here.

 

Bonus Resources – ETFs

While individual companies and stocks are a good way to invest with pinpoint accuracy, diversifying your resources is just as important. And it becomes difficult to stay on top of every space-related development and investment opportunity over time. That’s where space related ETFs come in.

ETFs provide you with the opportunity to gain exposure to a variety of stocks in diverse market segments. And you can get it done without investing thousands of dollars on separate individual companies and stocks. With the space industry, it can make sense for investors to broaden their investments across big and small players so that future prospects are brighter and better.

With that in mind, here are two space related ETFs that you can consider if you prefer a more generalized approach to investing in the space race.

Procure Space ETF (UFO)

Procure Space uses UFO as its ticker (stock symbol). So, keep that symbol in mind because it can often appear unrelated to the company’s name. Procure Space has over 30 companies that deal in a variety of space-related industries. These products and services include equipment dependent on satellite services, satellite manufacturing and operation, satellite communications, space imagery, and intelligence, etc.

By its own estimates, Procure Space expects the space economy to grow to $600 billion by 2030. And their calculations extend it to over $1 trillion by 2040 and beyond. If these estimates do materialize, early investors stand to gain much higher rewards later on.

Procure Space’s holdings today include companies like Garmin LTD (5.51%), Iridium Communications (5.34%), VIASAT Inc (4.89%). With Garmin LTD making up the single biggest net asset at 5.51%, Procure Space offers an incredibly diversified and wide-ranging list of holdings for its clients.

UFO’s price experienced a dip of $7 during March 2020. But there has been a gradual but unmistakable rise in the past year or so. During the time of writing this article, UFO stocks closed at $30.02.

Since its inception, UFO’s net asset value has grown by over 26%. While the exact market cap is uncertain at this point, the steady growth over the last few years reveals that there’s a working formula behind it.

For investors who don’t yet have a good grasp of space technologies, Procure Space (UFO) may be a good place to start. However, like any ETF, remember that UFO is also subject to the fluctuations of the market.

 

SPDR S&P Kensho Final Frontiers ETF (ROKT)

 

This is another ETF that covers space-related industries in its wide variety of holdings. As the name suggests, it’s an ETF that invests in explorations and

 initiatives that push the boundaries and explore new frontiers. SPDR S&P Kensho Final Frontiers uses ROKT as its ticker.

You should note here that these ‘final frontiers’ include both space and deep sea technologies. So, if you want to invest exclusively in space-related holdings, you can go for individual stocks or an ETF like Procure Space. However, if that’s not an issue for you, SPDR S&P Kensho Final Frontiers offers more diversity in investments that cover both earthly (marine) and heavenly (outer space) avenues.

ROKT stocks opened at $41.35 when we last checked. And it’s a continuation of the steady rise that began back in late November 2020. It has experienced only one slump in the last three years, and that was in March, 2020 when most companies experienced a dip owing to the pandemic. So, worldwide diseases aside, ROKT stocks have consistently depicted a reliable rise in the past.

SPDR S&P Kensho Final Frontiers uses both quantitative methods of assigning weight and artificial intelligence to identify and capture companies that fulfill its aims. These are companies that primarily drive innovation and expand human understanding in the fields of unexplored oceans and space. So, it stands both as an investment and a means of increasing our understanding of the phenomena around us. Some may even say it’s a profitable philanthropic exercise, as contradictory as that sounds.

Freetrade penny stocks

In the world of the share market, penny stocks are some of the most unstable options. It is hard to predict their market trend as you never know what their prices will achieve. However, they are affordable, and many people pick penny stocks as their primary option for investments. Additionally, with some research, you can find the perfect penny stocks that will justify your investments.

So what are penny stocks? What do you mean by high-risk high-reward? Why should you invest in penny stocks? If you are new to the world of the share market and want to learn more about penny stocks, you have landed on the right page. This guide will help you to understand the concept of penny stocks and how you should invest in penny stocks.

The guide also provides a breakdown of some of the best penny stocks available on Freetrade with their share prices and market cap. Penny stocks can be highly beneficial if you invest in them with the right approach.

So without further ado, let’s dig deep.

What are penny stocks?

When we talk about investing in stocks, we usually think about big names, such as Tesla or Facebook. However, penny stocks concentrate more on investing in shares of lesser-known or smaller companies. In general, penny stocks are stocks of smaller companies that amount to less than $5 per share. However, you can also trade penny stocks on platforms, such as the New York Stock Exchange.

You can choose stocks from thousands of smaller companies listed on exchanges worldwide. However, it would be best to research and evaluate these stocks as you might incur a loss. Penny stocks are available in different segments and prices, making them an ideal investment for many people.

Where do you trade penny stocks?

Penny stocks are available in different stock exchanges worldwide. However, you will find the most popular ones on the US and UK stock exchanges. These exchanges sell penny stocks of thousands of small companies at a variety of different prices.

US options

 

In the US, you can trade penny stocks in the New York Stock Exchange and Nasdaq. Since penny stocks come with lower trading volumes, you may not all of them outside the US. However, you

 can access US penny stocks using the Over The Counter or OTC market, which allows you to select your preferred stocks.

You can purchase OTC stocks directly from financial services or brokers. However, it would be best to do some research before investing in these stocks as they carry a higher level of risk. Since companies issuing penny stocks on the OTC market don’t adhere to regularity standards, you cannot buy them from exchanges.

This irregularity makes OTC penny stocks vulnerable, and you should be very careful while purchasing penny stocks from these markets.

UK options

In the UK, Alternative Investment Market or AIM lists different penny stocks. AIM is a branch of the London Stock Exchange (LSE) that deals with penny stocks.

You can find thousands of stocks from different companies listed on the platform. AIM has been profitable for various companies and people but also shares some misfortunes in its bag. However, AIM has a different listing standard than London Stock Exchange, and it would be best to evaluate before investing in stocks listed in AIM.

What do you mean by High Risk, High Reward?

High Risk

Since newer and smaller companies lack transparency, we can characterize penny stocks as high-risk investments. These reasons make them highly unpredictable, and you may incur loss due to the lack of information.

Here are some of the things to avoid before investing in penny stocks:

• Unsolicited stock advice from spam mails
• Stock information from unknown messages or telephone calls
• Newsletter from various sources even though they provide the correct information about the stock progress
• Lack of listing standards

Since these companies don’t adhere to listing standards or follow the rules, you become vulnerable and incur a loss. Additionally, penny stocks don’t require minimum shareholders or assets, making them more vulnerable than regular stock investments.

High Reward

Although you have a high risk associated with penny stocks, they can be rewarding as well. Since finding accurate information about a new company is challenging, you can capitalize if you find it first. Additionally, you can gain higher rewards with minimal investments, making penny stocks an irresistible option for many investors.

You can assume penny stocks as the entry point to emerging companies before they turn lucrative. Furthermore, penny stocks are an excellent entry point into trading, especially for beginners. They serve as an ideal learning ground for stock market fundamentals without spending a fortune.

Penny stocks have seen a surge in demand in recent years, and people from different age groups prefer them for trading. If you choose the right penny stock, you can make the most out of it. However, it would be best to evaluate and research before investing in penny stocks.

How to invest in penny stocks?

You can buy penny stocks with most investment accounts. However, some accounts will allow you to buy more stocks than others based on liquidity issues. Since penny stocks have low trading volumes, brokers find it harder to offer them. It would be best to check a broker’s stock list before investing.

Here are the basic precautions that you need to take before investing in penny stocks:

• Evaluate the amount of money you can afford to lose if your plan does not work.
• Check for hidden commission charges levied by brokers.
• Conduct thorough research on the companies offering penny stocks before investing.
• Don’t expect long-term results. Penny stocks are excellent for short-term profits.

Why should you invest in penny stocks?

Although penny stocks are volatile and carry a higher risk than traditional stocks, they can be lucrative with the right approach. Here are some of the advantages of investing in penny stocks.

• Affordable: Unlike traditional stocks, penny stocks are inexpensive. They are the perfect entry point for beginners into the trading world. Since you spend less, you will have little to lose if something goes wrong. Additionally, you can divide your investments into different companies and see which one provides the best results.
• High reward: As we mentioned earlier, penny stocks can benefit you a lot if you plan your approach. If you invest in a new company that you feel will grow into a giant, you can reap higher benefits than your actual investment. You could discover a company that turns your fortune overnight and reap higher benefits.
• Ideal for beginners: Penny stocks are the ideal trading ground for beginners. For instance, if you have $500 to trade, you can only buy four to five shares of an established company, whereas the number could be in thousands if you invest in penny stocks. This ability will help a beginner or small investor to understand the stock market fundamentals more conveniently with minimal commitment.
• Faster results: Unlike traditional stocks, penny stocks derive more immediate results. You don’t have to wait years to reap benefits from your stock investments. If you plan and research, you can reap significant benefits within days of investing in penny stocks, making them a delight for beginners.
• Potential growth: Although there is a higher risk associated with penny stocks, they can promise potential growth if approached correctly. However, you will have to plan and research before investing in penny stocks and pick the right ones.

Investment tips for beginners

Penny stocks are the perfect platform for beginners to foray into the trading world. Since penny stocks are affordable, you can start with a minimal amount before expanding your reach. You can get familiar with stock market fundamentals and experiment with different companies with minimal commitment.

To help you get started, here are four tips that beginners should follow before investing in penny stocks.

• Invest in growth: Choosing the right industry is crucial for any investor to capitalize on their investments. It would be best to look for companies that have potential growth in the future to minimize the risk. For instance, Green energy is a promising sector in the future since the world is looking forward to natural resources as an alternate energy source. Other prospects can be pharma and precious metal companies.
• Company background: Planning and researching a company is a good start before investing in penny stocks. Background research of a company will reveal their experience and position in the real world, which will make it easier for you to decide before investing.
• Check the financial background: Although penny stock companies don’t follow the same listing regulations as their bigger counterparts, they have to make some of their accounts public. You can check these accounts for profits and debts to minimize risk. If they have dues, ensure that they have enough money to clear them.
• Don’t buy because it is cheap: As mentioned earlier, penny stocks are affordable and alluring to beginners. However, performing proper research will ensure that you remain on the safe side. If your research suggests that you are investing in the right one, you can go for it. Otherwise, it is better to evaluate rather than buying something cheaper than others.

Freetrade Penny Stocks

Freetrade is an excellent platform to buy penny stocks. Whether you are an avid investor or a beginner, Freetrade will help you grow your investments and savings. Additionally, its transparent charges/fees make it convenient for users to purchase stocks from the platform.

Why should you invest with Freetrade?

 

Like we mentioned earlier, investing in penny stocks is an effortless task on Freetrade. It has a simple design with an easy-to-use interface, making it one of the top choices for investors

 

 worldwide. Here are the benefits of investing with Freetrade:

• Easy to use interface
• Transparent charges/fees
• Lots of options for investment
• Affordable prices
• Excellent for beginners
• It covers different markets and sectors worldwide
• You can buy from UK and US stock exchanges
• Fast and friendly customer support

Freetrade has a lot of options for investments. However, not all of them provide the same results. While many customers may want to invest in upcoming companies, we recommend conducting research first before investing.

Like we mentioned earlier, choosing the right industry and market is vital for success. Likewise, it would be best to look for sectors and companies with potential growth in the future or stick with players that provide steady returns.

If you are still confused about your investment, here are seven companies and sectors that will provide you with steady returns.

1. SAR Sareum

SAR Sareum is one of the best options on the Freetrade platform, with a market cap of 79.242m (GBP). It is a UK-based company and has been growing consistently in recent years. If you are a beginner and want to invest, SAR Sareum is worth considering.

Company profile

Sareum Holdings PLC is a company engaged in the development and discovery of therapeutic drugs. They combine medicinal chemistry, biology, and computational chemistry skills to produce these drugs. It has a drug discovery platform known as the Sareum Kinase Inhibitor Library that helps develop these drugs.

The company produces three types of drugs, including TYK2/JAK1 Kinase, Aurora+FLT3 Kinase, and Checkpoint Kinase 1. The company also has collaborations with the Sierra Oncolgy, Inc. and the Medical University Biomedical Engineering Center.

Sareum Holdings PLC share price

The share price of SAR Sareum is 2.46 GBX. According to the latest report, its share opened at 2.42 GBX and closed at 2.46 GBX, gaining a 3.66% rise against its opening amount on 14^th May 2021.

Should I invest in SAR Sareum?

SAR Sareum has been consistently growing in recent years. If you are looking to buy shares and don’t know which company to invest in, Sareum Holdings PLC is worth considering.

2. PHE PowerHouse Energy Group PLC

The energy sector is one of the best options to purchase shares. If you consider buying shares in this sector on Freetrade, PowerHouse Energy Group PLC with a market cap of 200.017m is worth considering. It started its operations in 2000 at Bingley, United Kingdom, and has been lucrative for many shareholders.

Company profile

PowerHouse Energy Group PLC is one of the major suppliers of electrical energy and hydrogen systems in the UK and internationally. It is a company that designs plastic regeneration processes and delivers them across the world. It also provides Distributed Modular Generation technology to prepare synthetic gas from calorific waste streams. Additionally, it also offers customer testing and engineering services.

PHE PowerHouse Energy Group PLC share price

The share price of PHE PowerHouse Energy Group PLC is 5.10 GBX. According to the latest standings, its share opened at 4.89 GBX and closed at 5.10 GBX, gaining a 6.25% rise from its opening figures.

Should I invest in PHE PowerHouse Energy Group PLC?

Like we mentioned earlier, the energy sector is one of the fastest-growing sectors in the trading world. With a consistent rise in its shares’ value, PHE PowerHouse Energy Group PLC is undoubtedly worth considering.

3. NGHT nightcap PLC

Nightcap PLC is another profitable penny stock that you can buy on Freetrade. The company has a market cap of £35.8m and operates from the United Kingdom. It runs hundreds of restaurants and bars across the UK and has a reputation for doing well in the trading world.

Company profile

Nightcap is a company that deals in different kinds of drinks. It is a famous face in the UK’s bar and restaurant industry and operates in all the major cities of the United Kingdom. It has acquired significant recognition in the UK with thousands of happy consumers.

Nightcap has several reputed acquisitions under its belt, with London Cocktail Club being its significant and profitable cocktail bars. This club operates at nine different locations in London. The success behind this chain is its sophisticated cocktails, first-class service, and vibrant environment.

NGHT nightcap PLC share price

The share price of NGHT nightcap PLC is 26.62 GBX. According to the latest listings, its share opened at 26.80 GBX and closed at 26.62 GBX, maintaining a consistent performance in the trading world.

Should I invest in NGHT nightcap PLC?

Nightcap is consistently performing well in the stock market. With the company planning more expansions and acquisitions, the company will generate more wealth, making it an ideal option for investors.

4. PNPL Pineapple Power Corporation PLC

The Pineapple Power Corporation is a lucrative company based in the United Kingdom and one of the best on Freetrade. It has a market cap of 4.54m and has thousands of satisfied shareholders under its belt.

Company profile

The company listed itself on the London Stock Exchange as an acquisition company. The trading symbol of the company is PNPL and operates in the traditional market of the LSE. Its vision is to acquire clean energy or renewable companies across the world.

Clean energy investments have seen a surge in recent times, and this company intends to participate as a fund-raising platform for various enterprises. It is an ideal option for beginners to access the international capital markets.

PNPL Pineapple Power Corporation PLC share price

The share price of PNPL Pineapple Power Corporation PLC is 7.23 GBX. The latest standings opened at 7.75 GBX and closed in 7.23, maintaining a consistent run on the share market.

Should I invest in PNPL Pineapple Power Corporation PLC?

Clean energy is one of the best sectors for investments, and growing companies, such as the Pineapple Power Corporation, can be lucrative. It is one of the best penny stocks available on Freetrade and is undoubtedly worth considering.

5. PAF Pan African Resources PLC

Companies related to the exploration of precious metals are very lucrative and offer high value for their shareholders. If you are looking for a company that deals in precious metals, the Pan African Resources PLC is worth considering. The company has a market cap of 370.972m and operates from Johannesburg, South Africa.

Company profile

Pan African Resources PLC is a company that deals with precious metals. It explores potential sites for valuable metals. It operates from Johannesburg, South Africa, and the Barberton gold project is its principal property. This property consists of underground mimes at Fairview, Mpumalanga Province, and Sheba.

The company is operating since 2000 and has been a consistent performer in the trading world, making it a delight for investors.

PAF Pan African Resources PLC share price

The share price of PAF Pan African Resources PLC is 19.22 GBX. The latest standings opened at 18.74 GBX and closed at 19.22 GBX, offering an excellent value for shareholders.

Should I invest in PAF Pan African Resources PLC?

Companies dealing with precious metals have always been a lucrative option for investors. The PAF Pan African Resources PLC is a profitable company with a consistent performance in the share market.

6. BMK Fish Food

The farming and food industries have a proven track record of performing well in the trading world, and if you are interested in this industry, you can buy penny stocks of the Benchmark Holdings PLC on Freetrade. It has a market cap of 414.823m and has been a lucrative option for many investors.

Company profile

Benchmark Holdings PLC provides technical products and services for the development of farming and food industries globally. It operates through health, advanced nutrition, and genetics segments. The company’s genetics segment provides salmon breeding production facilities and technologies.

The company has an advanced nutrition segment that provides health and nutrition products. Benchmark Holdings PLC operates from Sheffield, United Kingdom, and works in the aquaculture industry.

BMK Fish Food share price

The share price of BMK Fish Food is 61.90 GBX. The latest standings opened at 59.05 GBX and closed at 61.90, gaining a 2.31% rise against its opening figures.

Should I invest in BMK Benchmark Holdings PLC?

If you are interested in the aquaculture industry, the penny stocks from Benchmark Holdings PLC are undoubtedly worth considering. The company is a delight for thousands of happy investors as it performs well in the trading world.

7. REDX Pharma PLC

If you want to invest in a pharmaceutical company with consistent growth, you can consider REDX Pharma PLC. It has a market cap of 186.243m and is one of the leading pharmaceutical companies in the United Kingdom.

Company profile

The company engages in pre-clinical development, licensing activities, and drug discovery in the UK. It develops drugs for treating fibrosis and anti-cancer for less developed areas. The company also develops inhibitors to treat various diseases, including pancreatic, gastric, colorectal, and biliary cancers.

The company also collaborates with other pharmaceutical companies, including Jazz Pharmaceuticals PLC, to develop drugs. It operates from Macclesfield, United Kingdom, and has been a consistent performer in the trading world.

REDX Pharma PLC share price

The share price of REDX Pharma PLC is 62.50 GBX. According to the latest standings, the company has been performing well in the trading world.

Should I invest in REDX Pharma PLC?

Pharmaceutical companies can be a boon for investors and have a proven track record of performing consistently in the share market. REDX Pharma PLC is one of the best options on Freetrade and is undoubtedly worth considering.

Final Thought

Freetrade is an excellent platform for investments in penny stocks. However, it would be best to plan, research, and evaluate your options before investing in penny stocks.

Is Investing In IPOs A Good Idea in 2021

Many of us dream of making life-changing money by trading on the stock market. Although very few people actually hit it big trading in a short space of time. It is possible to capitalize on an Initial Public Offerings or IPO. Gaining profits by investing in IPOs isn’t as simple as it may sound.

However, with a strategic plan and a few helpful tips to invest in an IPOs, you can find an opportunity to invest in an Initial Public Offering IPO. And doing so, you can also be confident that money will have some outstanding returns.

Several renowned companies have had amazing advances on the very 1st day of their IPO. But in a long term, they disappointed their investors. So, let’s now know in detail about investing in an IPO to find out whether it is a good idea or not.

What Is An Initial Public Offering IPO?

The initial public offering is also known as IPOs is the 1st opportunity to buy stocks/shares in a previously privately owned company. It’s essentially a company opening its doors to investors via the stock market.

For this reason, within the first few moments of trading, the stock can spear by 20%-50% or even more. This means, although you placed a purchase order before the stock market opens, you could still be paying a higher price.

NOTE:
An IPOs suggests that a corporation’s rights are shifting from private rights to public rights. Therefore, the IPOs procedure is from time to time mentioned as “going public”.

An Overview Of What An IPO is

The initial public offering Or IPO is the interaction by which a privately owned business can open up to the world by offering its stocks to the overall population. It very well may be another, youthful organization or an old organization that chooses to be recorded on trade and subsequently opens up to the world.

Organizations can raise value capital with the assistance of an IPO by giving new offers to the public or the current investors can offer their offers to the public without raising any new capital.

A privately-owned company can only grow so much before the capital for continual growth turns scarce. For instance, their foremost sources for capital throughout the early phase of growth may be bank loans or even capital from private investors. But there is a limit to how much cash can be retrieved from those sources.

It is only a matter of time beforehand a fast-developing company requires going public to get the needed capital injection. By going public, that company can stop the debt responsibility that accompanies bank funding and the regulating issues that may be forced by venture financiers.

To know whether it is a good idea to invest in IPOs or not, we should know how many types of IPOs are available in the market. So, there are 2 common kinds of IPO available in the market right now. These steps are as follow:

Book Building Offerings
For the book building offerings, a company starting an IPO proposal a 20% IPO price band on its stocks to its investors. So, the concerned investors offer on the stocks before the ultimate IPO price is finalized. Here, that investors have to lay down the figure of stocks they plan to purchase and the total they’re eager to pay for each share.

The lowermost share IPO price is mentioned as ground price as well as the uppermost stock value is recognized as the cap value. The final decision about the IPO price of the stocks is decided by individual investors’ offers.

Fixed Price Offerings
The Fixed Price Offering IPO shares can be mentioned as the “issue value” that few corporations set for the preliminary sale of their stocks. The individual investors being aware of the worth of the stock market that a company chooses to make it public for “Go Public”.

The request for the IPOs shares in the stock market can also be recognized when the issue is locked. In case the investors participate in these IPOs, they must confirm that they are paying the full amount of the IPO shares when creating the application.

A List Of Recent IPOs

Are you interested to invest in IPOs? Then let’s know where to capitalize on the IPO. IPOs connect economies and companies with investment to enlarge their businesses, retain top employees, create jobs, and also raise their brands. It is a procedure that fuels modernization drives growth as well as encourages a healthy race.

The NYSE is the leading setting for global wealth raising, as well as the exchange of optimal for issuers. It is the place for 75% of every U.S. tech profit raised, with businesses including Twitter, Uber, Spotify, and Slack. Some unique blend of human proficiency and leading-edge tech confirms the achievement of your IPO.

Despite an epidemic, 2020 driven out to be a good year for the IPOs, with approximately 494 IPOs growing a shared $174 billion, establishing innovative accounts on both amounts. Rock lowest interest charges and sustained post-pandemic expenditure correspondences should keep mandate for new matters high, and there is no lack of eminence private companies searching to tap the public marketplace. Here are 5 of the greatest IPOs to look after in 2020-2021. So, here is a list of recent IPOs…

Coinbase

Coinbase, a foremost cryptocurrency exchange, is well worthy of its position amongst the highest 2021 recent IPOs to take a look. As currencies for instance Ethereum and Bitcoin hit record highs in the recent few months. Coinbase, such as Roblox, will as well go public through a through the entry.

The company will incline on Nasdaq and recently has permitted pre-IPO stocks to trade on the Private Market such as Nasdaq. It is fetching estimates between $50 billion & $75 billion. It makes a spread of around 0.5% on each deal and a fee of a minimum of 1.49% per transaction.

That means the business directly gets profits from not just the rising acceptance of cryptocurrency, but also from the higher insignificant values of cryptocurrencies. Probable 2021 IPO estimate: among $30 billion to $75 billion

Airbnb

Established in 2008 as a site to take appointments for rooms during meetings, Airbnb’s posting was perhaps the most expected U.S. Initial public offerings of 2020, which has effectively been a record year for securities exchange postings.

Portions of Airbnb Inc dramatically increased in their financial exchange debut on Thursday, esteeming the home rental firm at simply more than $100 billion in the greatest U.S. first sale of stock (IPO) of 2020 and covering a guard year in which financial backers rushed to tech stocks.

Airbnb opened at $146 on the Nasdaq, far over the IPO cost of $68 per share that raised $3.5 billion for the organization. The stock hit a high of $165 and shut at $144.71.

The IPO is the zenith of a shocking recuperation in Airbnb’s fortunes after the company’s business was vigorously harmed by the COVID-19 pandemic recently.

Snowflake

The software start-up silently filed for the IPO a few months back, a contribution that could spread its estimate to $20 billion. Begun in 2012, Snowflake’s cloud information warehousing and examination administrations have encountered flood popularity in the previous year.

Truth be told, the organization created more than $100 million in income in 2019, a 174% increment contrasted with 2018. The organization, which is clashing with any semblance of more settled veterans like Amazon, Google, IBM, Microsoft, and Oracle, has raised more than $1.4 billion in VC financing, with a current valuation of around $12.8 billion.

One financial backer, Salesforce, will be especially vital, on the grounds that Snowflake’s information can be joined with Salesforce information, showing up consequently for Salesforce clients. Money Street financial backers are intently watching the Silicon Valley organization, and its imminent IPO has been designated “perhaps the most expected tech postings of the year.”

DoubleDown Interactive

Cooper DuBois, a Seattle designer began this mobile gaming business in the year 2009 with its sign DoubleDown gambling games for Facebook. 3 years later, DuBois traded it for around $500 million. At present, the Korea-based proprietor of DoubleDown has 4 social gambling club games that have been introduced in excess of 100 million times and log in excess of 3 million players every month.

That is directed to a sound main concern: DoubleDown procured $36.3 million in benefits on $273.6 million in income in 2019. The organization, which documented to open up to the world in June, was required to open up to the world on the Nasdaq trade once it abruptly delayed the IPO after previously downsizing the size of the contribution and diminishing the normal posting cost.

Some had anticipated a public presentation this late spring could carry the organization’s worth to $1 billion, however, it is indistinct whether the organization will attempt again this late spring.

Infobird Co. Ltd.

Infobird is a SaaS, or software-as-a-service, benefactor of advanced artificial intelligence-enabled, or AI-powered, customer assignation keys in China. Leveraging the

Self-developed cloud computation assembly
Machine learning and AI capabilities
Original VoIP or Voice over Internet Protocol
Application technologies
In-depth industry expertise and
No-code development platform
They primarily deliver holistic software explanations to aid the corporate customers proactively send and succeed end-to-end client engagement actions at all phases of the auction’s procedure together with sales activities and pre & post-sales client support.

The company presently specializes in serving company customers in the economics trade and also shelter a broad collection of other trades, including the public services, education, healthcare, and also consumer products trades.

They are one of the long-standing and leading domestic SaaS benefactors in helping large innovativeness in the investment industry in client engagement with more than 10 years of involvement.

The company continues to modernize by evolving technologies that allow them to send a sequence of explanations and facilities which address the developing and changing requirements of their corporate customers.

As stated by the Statement on the SaaS’s Industry Trend in China issued by Business Partner Referring in March 2020, the SaaS trade is a fast-growing marketplace in China, rolling from around $2.3 billion in 2019 to around $3.3 billion in the year 2020, and is predictable to produce to around $6.9 billion in the year 2022.

A List Of Upcoming IPOs

The initial public offering or IPO market overwhelmed a lightning-speedy stand market in the year 2020 to recuperate to statures not seen in the interim the website flourishing. However, there is as yet a wash rundown of the impending IPOs for the year 2021, as a mass of the organization’s methodology on tapping Wall Street for most required speculation.

In February, bits of female-drove dating application director Bumble (BMBL) took off above and beyond 60% higher in their public presentation. In March, web gaming stage Roblox (RBLX) took pleasure in a 54% first-day bounce after its commitment. Besides, in April, internet tutoring provider Coursera (COUR) assessed at the high completion of its span and still wrapped its first day up 36%.

You can thank a quick snap-back show and outright base financing costs for reestablishing Wall Street’s wheeling and dealing. Notwithstanding, we should now look at the significant 5 forthcoming IPOs in the U.S

Robinhood Markets

Robinhood forwarded in the year 2013 to fabricate a stage that democratized the monetary business sectors with no-expense stock exchanging. Recent college grads hopped on the application, beating 10 million clients a year ago.

The organization has endured glitches of late: When the monetary business sectors were in bedlam this spring, the exchanging stage went down, leaving furious clients to watch their stock qualities drop without having the option to do anything about it.

In spite of this, client development has kept on moving as stock exchanges have maybe made up for the betting shortcoming left by the shortfall of sports wagering and club. Financial backers have been hanging tight for an IPO for a very long time after the organization was preparing for one.

All things being equal, Robinhood raised $373 million from private financial backers in the year 2019 and $280 million more in May of this current year, getting an $8.3 billion worth. So, the upcoming IPOs plans are as yet uncertain.

Bumble

Among just 2 names on a year ago’s rundown of profoundly expected IPOs that didn’t open up to the world in the year 2020, Bumble has entered the year as apparently the single most sultry organization tapping public business sectors in the year 2021.

The parent organization to the eponymic Bumble dating application – which flaunts in excess of 100 million clients – is looking to increase over $1 billion from the 2021 IPO that will see the organization record on the Nasdaq listed under the image “BMBL”.

One sure sign for the Bumble IPOs: It’ll twofold the current choice of dating application shares, where the MTCH (Tinder parent Match Group) has ruled as the lone alternative for financial backers bullish on the area.

Instacart

The unicorn staple getter application has been blasting recently. Interest for the assistance flooded this spring, as a huge number of individuals who protected set up arranged staple conveyances. In March month, the order volume developed 500% more than the year earlier, with customers burning through 35% extra per request.

What’s more, in April alone, the organization made money of $10 million, because of manages Kroger, Walmart, as well as Costco, and a help region that arrives at 85% of the U.S and also 70% of Canada. At the point when the remainder of the economy halted, Instacart declared it would welcome 300,000 new customers more than a quarter of a year.

The memorable development was a help contrasted with 2019 when the organization ran into issues with its independent customers. In January, it paid $4.6 million to settle a legal claim recorded by labourers who said that they lost tips due to the organization’s approaches. Instacart has hushed upon whether it will IPO this late spring.

The private business sectors keep on giving required capital: Venture financial backers put $225 million into the startup toward the beginning of June, a speculation round that drove Instacart’s worth to $13.7 billion, up from $7.9 billion.

Ascensus

The Ascensus is not the most energizing organization on the planet, yet it has the size to be treated appropriately. Ascensus administrations 401(k) strategies, IRAs, 529 strategies, and wellbeing investment accounts, with over $347 billion in resources under the organization.

As of now, it’s seeming as though a medium-2021 IPOs is likely. Goldman Sachs and Barclays will complete as 2 of the financiers on the forthcoming contribution.

Ascensus administrations the records of in excess of 12 million Americans as well as has over 40 years in the business, so when it could be another substance to the public business sectors, it is a stable, long-running business that can be relied on. Possible 2021 IPO worth: more or less $3 billion next time.

ThoughtSpot

The play on large information, ThoughtSpot is an innovation and investigation organization that could open up to the world later in the year 2021. There are still no official financial values for financial backers to go over, yet the latest publicly-announced income numbers motto top-line development slow down from 108% in the year 2019 to around 88% in the monetary first quarter a year ago.

The organization hasn’t fund-raised from August 2019, once it has grown $248 million at the $1.95 billion estimates. Clients incorporate enormous companies such as Walmart (WMT), corner shop 7-Eleven chain, as well as Disney’s (DIS) Hulu.

Another forthcoming IPO in the year 2021 with amazing administration, fellow benefactor Ajeet Singh as of now has experience dispatching a public organization, having established distributed computing and innovation framework organization Nutanix (NTNX). Probable 2021 IPO worth: over $2 billion.

Is Investing In An IPO Worth The Money Or Not

Market specialists feel that investing in IPOs is not a valuable service for retail stakeholders, who should rather look for basically strong, well-known companies in the sectors of high-growth. “These days companies do not leave anything for retail stakeholders and just go for supreme probable worth.

Likewise, in case of matters that see levels of high subscription, stakeholders get few stocks in share and that does not worth the blocking of investment and effort for ten days. Rather than lining up for investment in IPOs, stockholders should explore companies with durable basics in growth areas and thus capitalize on them.

Retail stockholders must also comprehend that these days investment financiers fight for the IPOs command, and the company/promoter goes for any banker that offers the uppermost worth. Intrinsically, there’s not abundant consent for the stockholders.

So, a higher worth suggests the IPOs would be valued at the best. It’s similarly one of the explanations why there’s an overflow of IPOs when the market worths are ironic — as investment financiers can then drive for the advanced worth of the IPOs.

For Example
Alibaba’s IPO
Visa’s IPO

Alibaba’s IPO on the New York Stock Exchange

History was made on 19th September 2014. The major IPO of all time unlocked on the NY Stock Exchange. Once Alibaba Group or NYSE: BABA had registered on the NYSE, it had a moment symbolic of the truthfully global nature of the investment market.

The nearby association that is critical to the IPO cycle, the permeability openings that range the globe, and the converging of legacy and advancement were all necessary pieces of a functioning relationship that had been deliberately developed in the former months.

At Alibaba’s base camp in Hangzhou, China, and on the floor of the NYSE, cheers ejected when the principal exchange ringer rang. The second all the while denoted the summit of numerous long periods of difficult work and the start of another stage in the connection between Alibaba and the New York Stock Exchange; a relationship dependent on proportional affirmation and certainty.

As Jack Ma, Alibaba Group CEO, said of the posting day, “What we collected today isn’t cash, it’s the trust. The duties we have.” The opinion was repeated by NYSE Group President Tom Farley. “We keep on driving the discourse available design for our backers to lessen intricacy and increment market steadiness.”

Visa’s IPO

NYSE: V or Visa is a U.S.-based technology company for payments, enabling electronic capital transfers internationally. Visa offers fraud guard, payment security, cross-border deal services, and also processing facilities to more than 200 countries as well as territories all around the world.

Stocks of Visa have fully-fledged vastly from the very 1st day of exchanging on the NYSE (New York Stock Exchange). Let’s now see how much a $100 venture into Visa’s IPO would have cost nowadays. Visa’s IPO was among the ones that made history.

The biggest IPO in U.S. history at that point, portions of Visa opened at $44 per share on 19th March 2008 – directly in the center of the Great Recession. Visa shares performed well indeed – shutting the principal day at $56.50 per share (or $14.13 adapted to parts – more on that in one minute).

An investor putting $100 in the $44 per share IPO would have two offers with a $88 esteem (the NYSE would not permit partial offer buys in the year 2008).

Prior to deciding the current worth of these offers, we should initially figure the 4-for-1 stock split on 18th March 2015 – which just implies that Visa weakened the absolute basic offers remarkable by four, bringing down the offer cost, and giving investors four offers for each offer in a portfolio.

After the offered split, an investor would have a sum of eight portions of Visa. As Visa’s offer cost presently exchanges at $203.56, an investor would have a benefit of $1,540.48 prior to representing profits – a 1,751% profit from speculation. Representing profits of $34.70, an investor would have an absolute addition of $1,575.18 – a 1,790% return.

BOTTOM LINE

IPO leans towards gathering plenty of media consideration, several of which are intentionally cultivated by the business going public. Commonly speaking, IPO investments are prevalent among stockholders for the reason that they tend to produce unstable price actions on the first day of IPO investment and shortly afterward.

This can infrequently produce great gains, even though it can similarly produce huge losses. Eventually, depositors should investigate each IPO as stated by the list of the business going public and their monetary situations and risk acceptance.

FAQ Regarding Invest In An IPO:
Q. Are IPO’s a good investment?

A. Initial Public Offering can be hyped — in case a business is a decent investment, it will be a decent venture well after the IPO. Although it may be better to wait until after the IPO and let the dust settle, once the value of the stock drops or stabilizes as the anticipation dies down.

Similarly, make sure you do not get caught up in the hype when investing in IPO. Limit contribution to not over 10% of your portfolio. In case the IPO goes in contradiction of your beliefs, the loss will not be disastrous.

Q. Can you make a decent profit from IPOs?

A. The IPO can support one to receive revenue in a short time quickly. It is a procedure where a privately-owned company provides its stocks to the public for the very first time. Capitalizing in an IPO of a business that has the latent to nurture into a further prominent business can make you rich. But for that, you need to invest wisely

Investing in Supercar Companies – What to Expect

Savvy investors all over the world are on the constant hunt for the best investing opportunities. Investing in supercar companies is a heady combination of glamour and exponential risks that few investors can resist. A couple of decades ago, only the elite and the ultra-rich had access to such luxurious names as Ferrari and Porsche. 

But these days, the supercar investment club is a diverse mix of those with high to moderate budgets. Nevertheless, similar to any investment plan, understanding the basics and nitty-gritty about a company’s finances is crucial. This post gives you a low down on the top three supercar companies to invest in – Ferrari, Aston Martin, and Porsche. 

Later on in the post, we take a look at McLaren and Lamborghini and their possible IPO.

Let’s ride!

Ferrari

Ferrari or Ferrari S.p.A, is a manufacturer of luxury sports car from Italy. The company was originally a part of the Alfa Romeo race division until founder Enzo Ferrari took over as a separate company in 1939. However,

 the first official Ferrari car hit the market only in 1947. The supercar company has its headquarters in Italy and trades as RACE at New York State exchange, NYSE, and Italian Bourse, BIT. 

As recent as 2014, FCA or Fiat Chrysler Automobiles owned 90% of shares in Ferrari. However, a spin-off took place in 2015, which gave birth to Ferrari N.V, the holding company of Ferrari S.p.A. group. Furthermore, this separation is also partly why 10% of Ferrari shares went up in IPO with a listing in NYSE. 

The company is world-famous for racecars, particularly in Formula 1. However, Ferrari also has a good selection of road cars, albeit expensive and luxurious. In addition, the supercar company is also into producing concept cars, bio-fuel, and hybrid cars. The company has 4,164 employees as of 2019. 

The net worth of Ferrari is $36.41B as of March 23, 2021. 

Financial breakdown of Ferrari 

Investors who want to look underneath the gleaming metal of Ferrari cars need to have a piece of good knowledge about their financial status.

 

Note: The figures in this post are from the 2020 Annual Report from Ferrari NV published on February 26, 2021. All financial information is presented in $ USD. 

• Revenue – Ferrari’s annual revenue in 2020 was $3.952B, which was about a 6% decrease from 2019. However, for the quarter ending December 31, 2020, the company’s revenue stood at $1.257B, which is an impressive 22.35% increase year-over-year. 

• Gross profit – The gross profit for Ferrari for the quarter ending December 31, 2020, was $0.655B, which is an increase of 20.69% year over year. 

• Profit margin – The net profit margin of Ferrari is 17.8% as of December 31, 2020. 

• Operating income – $0.290B, which is an increase of 19.29%, year over year. 

• Adjusted EBITDA – $3.7M

Market cap of Ferrari 

Historically, the market cap of Ferrari has always been outstanding. As of March 26, 2021, Ferrari’s market cap is $37.74B, which puts it comfortably among the elite large-cap companies. 

Growth

Over the last five years, shares of Ferrari rose by about 433%, which is a staggering return on investment. This instance of gaining impressive gains is one of the primary reasons that attract long-term investors to credible companies such as Ferrari. 

In addition, the EPS or earnings per share for Ferrari are about 11% per year. For some, this percentage is less than stellar when you compare to the 40% of a standard average increase of share price. However, the compound earnings per share and the high PE ratio of nearly 63% are a clear indication that investors hold Ferrari in very high regard when investing. 

Apart from the investors’ confidence, Ferrari also projects impressive growth results in the current fiscal year. Take a look at the 2021 outlook presented by the company:

• Projected revenue – $5B  

• Adjusted EBITDA – $1.7B, which is a growth rate of 33.7% to 34.9%.

• Industrial Free Cash Flow – $0.41B

Of course, this is assuming that trading conditions are not affected by unprecedented conditions such as the Covid-19 pandemic of 2020. 

If you look at TSR or the total shareholder return over the last 12 months, it stands at 24%, which is not very promising. However, if you consider the long-term benefits, Ferrari’s share price is about 41% annually, which is very good. 

Future of Ferrari  

According to the officials at Ferrari, the supercar company plans to expand its catalog by adding as many as 15 new car models by 2022. Two of the supercar models were scheduled to be on the road by 2020. However, the plan was blown out of the water by the coronavirus. 

In addition, Ferrari also has plans to enter the SUV market very soon. The first Ferrari SUV is supposed to be named Purosangue and is scheduled for an international debut in 2023. Experts in the auto industry predict that the Purosangue will be a stiff competitor for rivals, including the Aston Martin DBX and the Lamborghini Urus. 

Furthermore, the supercar company has also revealed that they are working on a new engine for the 2021 F1 season. Head of the Formula 1 division, Mattia Binotto, says that the new engine has very promising results. The team also revealed their plan to change the company’s F1 car’s name from SF1000 to SF21 for the current race season. 

So apart from its steady performance in the share market, Ferrari shows no sign of slowing down, which is always a great confidence booster for investors and shareholders. 

Aston Martin

Aston Martin Lagonda Global Holdings plc, or simply, Aston Martin, has long been an icon of British luxury in the automobile industry. Its association with the glamorous James Bond also works like a charm for its popularity. The luxury sports car founders are Lionel Martin and Robert Bamford, and it was founded in the year 1913. 

Aston Martin has its headquarters in Warwickshire, UK. However, they serve a worldwide clientele. As of 2021, Aston Martin has 1997 employees worldwide. The company trades as AML at the London Stock Exchange. 

This independent luxury car manufacturer has a Royal Warrant as well as the Queen’s Award for Enterprise. In terms of honor and prestige, few supercar companies can measure up to Aston Martin. But ironically, Aston Martin has filed for bankruptcy seven times since its inception. 

Financial breakdown of Aston Martin. 

Note: The financial figures of Aston Martin in this post are from the investors’ annual report 2020.  All financial information is in $M

• Revenue – $843.7

• Gross profit – $153.2 

• Profit margin – 18.2%

• Operating income – $477.4

• Adjusted EBITDA – $96.67

Market cap of Aston Martin.

As of March 2021, the market cap of Aston Martin stands at $3.04B.

Growth of Aston Martin in the last five years. 

Despite running into financial woes multiple times in its history, Aston Martin has managed to stay afloat and even perform well in terms of growth. This is largely due to the fact that the billionaire Lawrence Stroll acquired about 25% of its shares in the supercar company. 

According to some reports, Stroll invested about $600 million into Aston Martin at the time of his association with the company. But apart from this fantastic turn of fortune, the company also raised its short-term working capital to $104 million. 

In terms of growth, Aston Martin’s sales performance was far from spectacular in 2020 due to the covid-19 pandemic. However, at the turn of Q4, the overall performance improved drastically due to the DBX SUV sale’s resurgence. This is a fantastic piece of news for shareholders and investors alike. 

Future of Aston Martin

Along with Lawrence Stroll’s input and his billions, Aston Martin has impressive plans for the future. The supercar company plans to roll out electric cars as early as 2025. According to the company’s chairman, plans to drop an SUV and a sports car with electric power are also in the pipeline. 

In addition, Aston Martin also plans to continue producing their iconic cars with internal combustion engines for decades to come, beyond 2030, to be specific. 

It gets even more exciting in the Formula 1 front. The first F1 car, AMR21, from Aston Martin is set to hit the road during the 2021 F1 season. This is an impressive achievement as it is the first F1 car from the company in more than half a century. 

Furthermore, Mercedes also increased its stake in Aston Martin’s share to 20% in the last financial year. This means that the German automaker will contribute not only its finances but car and electronic technology to Aston Martin, which is excellent news. 

Overall, Aston Martin is set to drive into a very bright future. So if you are an investor that is eyeing the stocks and the future of Aston Martin, it looks like you won’t be disappointed. 

Porsche 

Dr.-Ing. h.c. F. Porsche AG, or simply Porsche AG, is one of Germany’s car manufacturers. The company specializes in high-performance racing cars. In addition, the company also deals in sedans and SUVs and serves a worldwide clientele. Ferdinand Porsche founded Porsche in 1931. However, a new corporate restructuring in 2007 took place, which also resulted in renaming the company to Porsche Automobil Holding SE. 

The headquarters of Porsche is in Stuttgart, Germany. Volkswagen AG is the parent company that owns a sizable number of shares with Porsche. Porsche SE trades as PAH3 at FWB or Frankfurt Stock Exchange. According to the 2020 annual report, Porsche employs 948 people all over the world. 

Financial breakdown of Porsche.

Note: The financial figures of Porsche in this post are from WSJ Markets. All financial information is in USD thousands. 

• Revenue – $30.63B

• Gross profit – (20,023.20.0)

• Profit margin – -15.89%

• Adjusted EBITDA – 183.95

Market cap of Porsche 

As of March 19, 2021, the market cap of Porsche is $ 31.68B

Growth of Porsche in the last five years. 

Looking at the numbers, you would be forgiven for assuming that Porsche does not show good growth. However, Porsche has strong ties with Volkswagen, which is one of the largest car manufacturing companies. In addition, Volkswagen is just behind Toyota in terms of revenue. So it is hard not to consider that one company’s financial success will not affect the other. 

According to data on Statista, Porsche’s revenue between 2011 and 2019 increased significantly, which is fantastic news for investors. If you’re looking for specifics, Porsche’s revenue in 2011 was $12.95 billion. However, in 2019 it rose up to $30.62 billion, which is a significant figure. 

Although the automotive industry has taken a massive hit in the last couple of years, Porsche’s cars sales have been very steady. All this information points to the fact that Porsche’s stocks are growing. Furthermore, Porsche’s overall earnings are forecasted to grow by 16.86% per year, which is a good percentage. 

Future of Porsche.

As auto consumers’ attention goes towards electric cars, Porsche is also poised to produce electric SUVs by 2022. This is also sparked thanks to the unexpected popularity of Porsche Taycan, especially in North America. By 2030, Porsche aims to make up to 80% of its cars carbon neutral by going electric. 

The company also plans to develop and manufacture batteries exclusively for their EVs. However, the supercar company has no plans to halt their iconic cars with an internal combustion engine, which will please its clients. 

Furthermore, the car lineup from Porsche is nothing short of stellar. Among others, the 911 GT3 is set to get a redesign, with rumors of a hybrid version. During the fall of 2021, Porsche fans can also expect the Taycan Cross Turismo. In addition, the Macan EV that is part of the electric SUVs will hit the roads by spring next year.

For in-depth information about the Porsche Model listing and pricing for 2021, visit this link. 

Apart from Porsche’s fantastic efforts, the supercar company is also striving towards a zero-impact company. According to its CEO, Oliver Blume, Porsche is set to pump up to $17.66 to achieve its sustainability as well as digital transformation. 

In spite of the glitch of 2020 due to coronavirus, Porsche has been impressive about predicting their future performance. With such a good lineup for the future, whether it is in the form of cars or other plans, it would be interesting to see where this supercar company goes and achieves in the coming days. 

IPOs of McLaren and Lamborghini

McLaren 

McLaren Automotive or McLaren is a producer of supercars. It was founded in 1985 by Ron Dennis. Initially, it started out as McLaren cars but later changed to McLaren Automotive in 2010. McLaren Automotive’s parent company is the McLaren Group that owns 100% of its shares. The company has two divisions, which are McLaren GT and McLaren Special Operations. The headquarters of McLaren is in Surrey, UK. 

Here is a brief look at the financial breakdown of McLaren’s Q3 results of 2020. The financial information of McLaren is from the company’s website.  

• Revenue – $ 237.20 M

• Percentage of revenue growth – 60%

• Adjusted EBITDA – $ 46.99

McLaren and IPO listing.

As part of the restructuring and economic recovery step, rumors of McLaren going public in 2021 through a reverse takeover has been doing the rounds. Furthermore, according to some reports, McLaren also seems to be considering making a deal with SPAC or Special Purpose Acquisition Company in order to go public. 

Towards the end of 2020, one of the major funding groups, MSP Sports Capital, along with others, acquired stakes in McLaren. The group is also said to have plans of investing up to $255.97million in the McLaren GT division, which concerns racing. This is a smart move for McLaren to pay its debts and also maintain a front as the ravages of the covid-19 pandemic eases. 

Besides, McLaren also has plans to raise between $414.76 and $691.27 to pay down its debts through equity injection. Apart from this step, the supercar company will also attempt to refinance its bonds in 2021, according to reports.

Why is McLaren going for the public through a reverse takeover instead of taking the IPO route?

Reverse takeovers or RTOs are not uncommon in the business world, especially where when it comes to large companies. For the uninitiated, a reverse takeover is when a private company merges with a company that is already public or buys a large number of shares enough to control a public company. 

When the shareholders exchange their shares with the public company, the private company qualifies as a public company. The other name of reverse takeover is reverse IPO or reverse merger. 

There are many reasons why companies choose the reverse takeover. The process of RTOs happens a lot quicker than an IPO. For a company to undergo the IPO route, a lot of regulatory scrutiny takes place. This means that for a company to complete an IPO, it takes a lot of time. 

Reverse takeovers also do not warrant a lot of expenditure as an IPO. This can be a fantastic option for those companies who do not want to spend a fortune in an effort to go public. For McLaren, the deal with MSP Sports Capital is a surefire way to reduce its debts while getting a guaranteed public listing. In addition, a deal with SPAC means that McLaren can also raise funds without a lot of burdens. 

Essentially, reverse takeovers allow a company to go public using a shortcut. For McLaren, the decision to go public without a conventional IPO is as smart as it gets. 

Lamborghini

Automobili Lamborghini S.p.A. or simply Lamborghini is a luxury sports car company. The company’s best offerings are sports cars and SUVs. Its founder is the Italian magnate Ferruccio Lamborghini in 1963. The headquarters of the supercar company is in Sant’Agata Bolognese, Italy. Volkswagen Group presently owns and is also the parent company of Lamborghini.

As the world reeled under the Covid pandemic of 2020, Lamborghini had its best sales record in more than 50 years. The sales record hit more than $2.2 billion, which is an impressive figure. Experts say this is due to the fact that Lamborghini clients love and place orders for unique and bespoke cars and don’t mind paying a high price for them. 

2021 also started on a similar note as the supercar company recorded massive orders for the cars. In fact, the orders for Lamborghini cars in the first three months of 2021 are enough to keep the production facilities busy for the next nine months, according to its Chairman & CEO, Stephan Winkelmann.

What about Lamborghini and talks of IPO? 

Ever since the last year, talks of Lamborghini going public has been doing the rounds. As briefly mentioned above, Volkswagen Group owns Lamborghini. So as far as reports go, it looks like Volkswagen has plans for Lamborghini to go public.  

This talk stems from the fact that the German auto company is considering making Lamborghini more independent. In addition, steps to make a long-term deal of supplying cars also means that it will be easy for Lamborghini to list in the public domain. 

Currently, Lamborghini is not offering an IPO, which means you cannot buy its stocks yet. However, if the reports do come to fruition, Lamborghini going public through IPO will be a great move for the company. 

Read more on this topic here. 

Why is Volkswagen Group planning to make Lamborghini public?

For any company, outsiders can only speculate since no one is privy to classified information. However, there are advantages when a private company such as Lamborghini goes public. 

Take the example of Ferrari. After Fiat Chrysler put Ferrari on the stock market, the stocks of Ferrari have sharply increased very quickly. Although the sales and the overall performance of Lamborghini are not suffering, putting it on the stock market can be a turning point for the Italian supercar company.

As the parent company, Volkswagen is expected to control major stocks in Lamborghini after its listing. Nevertheless, if you are an investor with a taste in luxury, you might want to keep an eye out for this one. It looks like Ferrari might be racing other supercar companies on the stock market very soon. 

 It certainly is an exciting time to Investing in Supercar Companies!