SPCE No Earnings Burning Cash Swing ShortSPCE is losing money for 4 consecutive quarters showing that it is fundamentally
a losing proposition, perhaps destined for bankruptcy or alternatively share dilution
to raise cash which would prejudice present shareholders. Perhaps these scenarios
are baked into the price.
On the 4H chart the long downtrend dating back 2 years has continued. After
the turn of the calendar year SPCE got a little pullback from the downtrend but
has made a head and shoulders during the most recent earnings.
It is easy to see Virgin Galactic as a swing short opportunity while it is slowly
turning itself into a penny stock. Perhaps it will be Mr. Musk's next project
after finishing with Twitter and he will join it into Space-X which may or may
not reverse the slow demise. This is a clear case the interplay between
risk and reward. I will play this swing short until the week of the next
earnings.
