Paul Mampilly’s Space Stocks – “The Race to Mars”

A look at the teaser:

centered around the investment opportunity that comes from space exploration & space tourism companies

Mampilly is a big supporter of the colonization of Mars and goes on a spiel about why he thinks it is our “Manifest Destiny” to become a multi-planetary civilization

Elon Musk, Jeff Bezos, Richard Branson, Mark Zuckerberg and others pouring loads of money into this emerging space

talks about how if you missed out on investing in Apple, Amazon or Microsoft, this is your chance to make up for it

states that “this will be the biggest economic boom most of us will ever see” and goes on to compare it to the railroad boom of the 1800s and automotive industry in the first half of the 1900s

• “you have the opportunity to make the biggest investing gains of your life”
• “investors who get in now could see these three stocks soar as much as 900% … 1,000% … 3,900% … over the next three to five years”

​

And the sales pitch:

A Fortune Made in Space: The 3 Hottest Space Stocks to Buy Right Now

The Space Opportunity

​

1. SpaceX is has plans of going to mars
2. NASA is planning on going back to the moon and set up a permanent lunar outpost
3. Hollywood’s Tom Cruise will be filming an action movie onboard the International Space Station

Mampilly’s Space Stocks – He Teases 3 of Them

Space Stock #1 – “A One of a Kind Space Company”

For this first stock he claims to be “absolutely convinced this stock can soar 3,900%… in just five years”.

Here are the clues we were given:

• It is “going toe-to-toe with the commercial space industry’s 800-pound gorilla … SpaceX”
• It’s “just a few years old”
• It is “building on its proprietary rocket technology”

Not much to say here. All the clues given are very vague and don’t tell us much.

There are a handul of companies that fit the vague description given, but most are privately held at the moment and there just aren’t good enough clues to really narrow in on this one.

Any guesses on what this stock is here are more than welcome.

Space Stock #2 – The Belle of the Big Money

This one Mampilly tells us it “could hand us a gain of 1,000% in the next three to five years”.

• It’s “another strong American company”
• They are “employing more than 2,000 people”
• it has “annual sales of around $600 million , and it’s valued at less than $1 billion”
• It is “at the center of the biggest revolution in manufacturing in decades” – which is what makes it so important for space ventures
• “Right now, the stock is trading under $15 per share”

So it’s some kind of new manufacturing tech that will be very important to space business, but it doesn’t sound like it’s directly linked to such.

We are also told that Elon Musk has stated that this technology is “going to revolutionize design and manufacturing in the 21st Century”.

Now if you do some research here you’ll find that Musk was talking about designing and engineering rockets for his SpaceX company using 3D immersive reality visualizations that designers and engineers can interact with in real time with natural hand gestures, as shown here…

But this isn’t the investment opportunity. Musk then went on to talk about 3D printing and it’s importance in the process of rocket design/manufacturing.

It makes perfect sense that Mampilly is teasing a 3D printing company here. And he’s been very bullish on them in the past. But which company?

Well, the startup Relativity Space has the largest 3D printers and plans on manufacturing rockets entirely with it. It’s a space/3D printing company combined in one, but this still isn’t publicly traded, so that’s off the list.

He tells us the company trades for under $15.

So what is it?

Well, my best guess is 3D Systems (DDD).

Not only does this stock trade for under $15 without trading for too low under $15, but it’s a 3D printing stock that Paul has teased in the past. In fact, this was his “America 2.0” stock pick.

All the other clues match up too. They employ over 2,000 employees (but less than 3k) and their annual revenue from 2019 (the latest data) was at $629 million – Mampilly mentioned this figure being “around $600 million”.

Space Stock #3 – “Our Play on ‘Digital Steel’ for Space”

And lastly, Mampilly’s third pick he tells us is “the biggest and strongest of my three favorite space stocks” and is “the perfect setup for a 900% return over the next five years”.

900% returns? Sounds good to me.

Let’s take a look at the clues he gives us:

• “It makes ‘digital steel’ products that solve its customers’ most difficult design challenges”
• Has been doing this “since the late 1950s”
• It “serves more than 120,000 customers in the aerospace, defense & security, communications and industrial markets”
• Its currect market cap is “a little under $40 billion”
• It makes tech products for missions to the moon and Mars, and these products are “qualified to the highest standards of NASA, the Defense Logistics Agency, and the European Space Agency”
• It has “3,765 government patents in the U.S. alone”, and more in other countries

First off, we need to know what he’s talking about with this “digital steel” jargon.

“Digital steel” is just a term he made up. What he’s actually talking about semiconductors. He’s used this term in the past to refer to them so this is how I know.

And the company being teased here is none other than Microchip Technology (MCHP), which was fairly easy to identify.

Microchip Technology is a semiconductor company headquartered in Arizona and most well-known for analog and flash-IP integrated circuits.

The company has right around 3,765 patents in the US (didn’t count them all, but my estimations are right around this number), their market cap is just under $40 billion, and they specifically mention that they “serve more than 120,000 customers across the industrial, automotive, consumer, aerospace and defense, communications and computing markets”.

A pretty solid match here.

Will You “Make An Absolute Fortune” Here?

As you know, I haven’t been able to identify the first space stock Mampilly is teasing here, which happens to be the one he’s most bullish on, but the other two I have.

Are they really 9x and 10x gainers like he says?

Well, as is often the case with investment teasers, these predictions are highly speculative and you certainly shouldn’t bet the house on future gains like these.

3D Systems is a top leader in the 3D printing space and Microchip Technologies is a major company in its own respective sector, but both have 12-month forecasts by analysts that aren’t very impressive and predicting 9x and 10x gains 5 years from now is certainly a difficult talk.

Investing in the emerging commercial space sector has a lot of potential, but neither of the 2 picks I’ve identified are directly in this space and it’s definitely recommended that you really do your homework before purchasing shares of either.

One of the problems for investors at the moment is that there just aren’t a lot of choices out there when it comes to publicly traded companies in this space. Much of the companies in the space sector are still private and off limits for the average retail investor. But it’s definitely an area to keep your eyes on in the near future and it’s worth mentioning that joining Mampilly’s advisory serivice (not saying you should) also provides a watchlist of private companies that he’s waiting on to go public within the next few years.

Quick Recap & Conclusion