I have been a Star Trek fan since I was a child and have always found space exploration fascinating. The investment world has gone bonkers lately as the SpaceX IPO approaches.
It is the biggest IPO in history and will probably happen sometime in June. Perhaps the market is going to be held up until this IPO is completed. It means massive fees for the Banksters.
MDA Space
Recent Price - CA$58.20
Entry Price - CA$40.45
Opinion – Hold
I have highlighted MDA Space Ltd. (MDA:TSX; MDA:NYSE) as a Buy several times in the last couple of months, with the latest on April 20 with a Buy on Weakness, and the stock did temporarily drop to CA$41.
Now it is time to ride the profits. It will probably run up into the SpaceX IPO.
The stock has been moving higher since they announced their new high-volume satellite manufacturing facility in Montreal on May 8. This marks a defining milestone in the company's growth as a satellite prime contractor. The 185,000-square-foot expansion was completed in under two years, from groundbreaking to operational clean rooms.
One of the world's largest and most advanced satellite manufacturing facilities in its class, the new facility doubles the company's manufacturing floor space, providing MDA Space the capacity and capability to meet the growing global demand for advanced satellite constellations.
The facility is specially designed to simultaneously and continuously assemble, integrate, and test multiple MDA Aurora satellites, the company's flagship line of digital satellite products. Designed to meet the changing and highly competitive technical and business requirements of the industry, the fully integrated MDA Aurora portfolio provides satellite operators with exceptional flexibility and functionality. These software-defined, dynamic beamforming satellites provide a new level of performance and efficiency in space-based networks for customers.
Mda Claims a New Era in Canadian Space Manufacturing
Augmented reality and automated equipment aid technicians with repetitive tasks, significantly improving manufacturing efficiency to enable the delivery of satellites at speed and scale. In addition, MDA Space has developed a proprietary test chamber and has integrated advanced technology that reduces validation time and enhances quality assurance processes.
Beyond this expansion, the facility represents a fundamental shift in how MDA Space operates. New engineering and manufacturing processes, as well as performance data collection mechanisms, have been established to maximize efficiency and agility, building the operational foundation required to take on and deliver constellation programs and up to 400 satellites per year.
In a Financial Post article today. They highlight that MDA has identified a US$40 billion pipeline of global opportunities over the next five years as countries enhance their sovereign space technologies amid rising geopolitical tensions.
"Canada's only so big. A necessary part of our company's future is to be able to export to the U.S., as well as Europe and the rest of the world," said MDA chief executive officer Mike Greenley. Canada accounts for 63% of MDA's revenue, while the U.S. and Europe contribute 30% and 5%. Mr. Greenley said he wants U.S. and European markets to make up a much larger share, and the company will likely set up subsidiaries there via acquisitions.
At the GEOINT Symposium in early May, MDA Space finalized nine early customer contracts for data from MDA Chorus, its next-generation Earth observation constellation expected to launch in late 2026. In addition, the company has received 32 letters of interest from customers across Asia Pacific, Latin America, Europe, North America, and the Middle East.
On the chart, we have a clear breakout above CA$49, and we are in uncharted territory.
Buckle up your seat belts as the warp drive takes hold.
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