Virgin Galactic Holdings (SPCE) long term investment ideaMy view on Virgin Galactic Holdings.
The reason for the stocks to drop from $62 was mainly because of virgin group selling shares to keep the business alive. Since there it was in a downtrend.
-After the Italian air force flight virgin galactic disclosed that they want to sent the mothership (the plane which carries the spaceship) to maintenance and upgrade for a 8 month period. In this period you cannot fly the spaceship because you need the mothership. The benefits of this longer maintanace period: They will be able to fly the mothership 100 times without maintenance, instead of only 10 times with short maintenance. This will be great when they will open commercial flights which is expected to be in Q4 2022.
- Things were delayed abit because of the FAA situation.
"Virgin Galactic may not return the SpaceShipTwo vehicle to flight until the FAA approves the final mishap investigation report or determines the issues related to the mishap do not affect public safety," the agency said.
This problem with the FAA is solved but this delayed the flight.
I waited out for the stock price to bleed out during the maintenance period to buy more shares.
I try to compound at prices where it is depressed and where nobody wants to buy them or hear about the stock anymore, thats usually a good spot to buy. My lowest compound price: $7.18 and highest compound price : $24.10.
Virgin group has sold shares in virgin galactic and also Richard Brandson just to help their airline business . When the business do better they wont need to cash out out of virgin galactic to try to make the other businesses survive.