Maxar Technologies Inc is one of the advanced space technology solutions. This company is focused on delivering end-to-end capabilities in satellites, robotics, Earth imagery, geospatial data, analytics, and insights. The Company’s commercial space brands are including MDA, SSL, DigitalGlobe, and Radiant Solutions. These space brands are supplying vertically-integrated capabilities in satellite communications, ground infrastructure, Earth observation, advanced analytics, insights from machine learning and many more. It has the protection of space assets through cybersecurity and monitoring of space systems.
- Maxar Technologies (MAXR) is one of a small number of pure-play space stocks. They are covering in NYSE MAXR or MAXR stock news at https://www.webull.com/quote/nyse-maxr This company is highly leveraged towards growth in the business of space and we believe that’s a very good place to be.
- The space industry is in the early stages of a long-run growth curve, and we don’t think this is yet fully appreciated by the market at large.
- They have been highly critical of MAXR’s stock in their work on SA. These views changed recently as the fundamentals have improved.
- They have an attractive buy coming down the pike as this bearish market is still treating the company as if it were a busted flush.
Restructuring To Date
- Throughout 2019 you will find our MAXR coverage kept making the same point. Huge leverage, no cashflow.
- The potential downside outcome of that isn’t rocket science. Although Marx’s national security contracts likely insulate it from a full collapse, bankruptcy, and asset sale, it was easy to see a scenario in which lenders accelerated the loans.
- This is commenced the default process and a debt-for-equity swap took place, diluting those shareholders who were not also lenders.
Risk And Reward
- All through 2019, they felt that the stock was running away with itself, ahead of the fundamentals which remained weak.
- They stayed at Neutral as a result. They saw there could be upside but they also felt that balance sheet risk presents a binary downside that cannot be compensated for.
- This approach to investing is first, try to not lose money, second, try to make some. MAXR pre the MDA sale carried for this too much risk of losing principal to want to invest.
A Potential Acquisition Target
- They are believed the company had to cross were balance sheet risk reduced, the path to operating cashflow established, and the next-gen satellite fleet proven to perform.
- Now in March 2020, one is reportedly very much in progress and one is a consequence of the former two. You can also get Nasdaq cblk news at https://www.webull.com/quote/nasdaq-cblk