A little under a year ago I posted some DD on Redwire as it sat at $8.88 after a poor earnings call. I had 2800 shares at the time (\~25k), with intention to add to the position.
Today it sits at $14, and is still undervalued.
I currently hold 6000 shares (\~84k), with intention to add more as long as space continues to gain interest, specifically orbital datacenters. With SpaceX IPO on the horizon, I think this is currently the best company to benefit from the sector growth, without needing to worry about IPO valuation skews.
In my last post I talked about how they had a backlog of contracts, and their losses were mainly due to their aggressive acquisitions rather than poor execution.
Well, looks like I was right. Revenue is up 57.9% YoY and the backlog book-to-bill ratio grew even MORE to 1.92 from 1.57, which was already high. They literally have tons of work coming in and even have Alphabet and SpaceX agreements in the pipeline for SPACE DATACENTERS.
Yes, they are currently still losing money, but only because they keep making profitable acquisitions to fulfil their backlog. They are in a rare scenario where they can go look for talent already knowing the job they will be doing next year. Most companies have to make acquisitions, then go find work.
This is the picks and shovels play for space infrastructure (starting with datacenters), which doesn't sound real, but will be very soon. Everything is pointing to it, and it's real. This is going to be a massive player in any space infrastructure play. It's not a matter of if, but when (which is why I have shares and not options). We WILL be building shit in space, and when we do, this is the best positioned company to benefit from it.
This is still accumulation phase for me, so I will be buying more over the next months. I look forward to another update if anything materially changes with the company
(Previous post: https://www.reddit.com/r/wallstreetbets/comments/1mr0app/redwire\_rdw\_the\_oversold\_space\_winner/ )