The fact you’re justifying buying RDW with what happened with RKLB and ASTS means you’ve no idea what these three companies even do.
The only thing in common is that they all make things that go (or go inside of other things that go) above the ground, that’s about it.
Not saying RDW is a crappy company, I’ve been personally following it for a while, but I definitely don’t feel it’s the next big play.
https://preview.redd.it/lvv2pc3pf7tf1.jpeg?width=1290&format=pjpg&auto=webp&s=ff9b05b3496349c80fc307dcf76ee79b5e61986e
Maybe not the best time to jump in on RDW. They’re in some trouble it seems. They were cooking the books early on to gain investors buy in. They got caught and now they have to pay. Forget that the amount is low, the trust is now shaky with retail investors. Yea maybe this prints down the road but it seems risky at the moment. Good luck to all.
This is a terrible pick. Way better space companies out there. RDW is backed by PE and leadership is shit.
This company is a stinking shitco through and through.
Not even close. I can show you my port which is 3.5 million.
Can’t you show us where you bought RGTI, NBIS, RKLB early? And where you sold. That would show me you actually spot stocks early, your portfolio balance doesn’t show me anything.
I’m not denying it nor do I care too much I just think it would add a lot of credibility to your conviction in RDW.
Magic Signal analysis for RDW
Key Highlights:
Major Contract Wins: Secured pivotal agreements, including building solar array wings for Axiom Space's first commercial space station module and a $25 million NASA IDIQ contract for biotechnology facilities on the ISS.
Strategic Expansion: Opened a new facility in Albuquerque focused on space-based defense systems, signaling a significant push into defense markets.
Subsidiary Success: Edge Autonomy unit continues delivering advanced unmanned aircraft systems (UAS) to European NATO countries and Ukraine, showcasing enhanced relevance in current geopolitical contexts.
Volatility & Sentiment: Year-to-date (YTD) share decline of -36.17%, but recent breaking news and contract wins have triggered short-term rallies. Stock is highly volatile, with >5% moves occurring frequently.
Analyst Consensus: "Moderate Buy" rating with a price target near $18.07, but sentiment is mixed due to recent insider sales and select downgrades.
Key Interpretations:
RSI signals the stock is technically overbought, increasing the near-term risk of a pullback or consolidation phase.
Price trading 14.29% above its 20-day SMA and bullish MACD readings indicate strong, potentially unsustainable momentum.
Options market demonstrates heavy bullish sentiment, with call volume and open interest far outpacing puts.
Elevated implied volatility underscores the potential for sharp and unpredictable price movements.
Market Analysis:
Robust Contract Backlog: New multi-million dollar agreements with NASA and Axiom Space reflect RDW's increasing mindshare in commercial and defense space infrastructure.
Emergence in Defense Market: The Albuquerque facility launch and Edge Autonomy’s presence in Ukraine/NATO integrations position RDW at the intersection of two expanding government spending cycles: defense and space.
High Volatility Environment: YTD share price decline (-36.17%) and a wide 52-week range ($6.61 - $26.66) reflect investor uncertainty, execution risks, and sensitivity to contract flow.
Mixed Analyst and Insider Signals: While the consensus leans positive, divergent analyst price targets and large insider sales create ambiguity in broader market conviction regarding long-term execution.
Investment Outlook:
Short-term (1-3 months): BULLISH | Confidence: 75%
Supporting factors: Recent contract wins and commercial expansion drive positive sentiment. Technicals (momentum, above-SMA price, bullish options flow) point to continued strength, but overbought RSI signals a potential need for consolidation.
Catalysts/risks: Sustained buying interest from new contracts and media coverage, but risk of profit-taking or correction if momentum stalls or macro/geopolitical shocks occur.
Medium-term (3-12 months): NEUTRAL | Confidence: 60%
Longer-term factors: Execution of new contracts, continued focus on space and defense infrastructure, and realization of revenue targets are critical. Investor scrutiny will remain high due to historical losses, margin risk, and dependence on lumpy contract timing.
Growth drivers: Successful ramp of new facilities, further contract wins in defense and commercial space, and progress on biotechnology initiatives. Watch for margin stabilization and positive cash flow trends.
Risk Assessment:
Financial Risk: Continued quarterly losses, high cash burn, and ambitious financial projections carry risk if revenue ramp stalls or costs rise unexpectedly.
Execution Complexity: Reliance on large, technically complex contracts introduces project timing and margin risks. Failure to deliver on commercial or defense agreements could puncture future growth assumptions.
Volatility & Liquidity Risk: Sharp daily moves make RDW vulnerable to sentiment shifts and could trigger forced selling or margin calls.
Geopolitical Uncertainty: Exposure in Ukraine and NATO theaters brings operational and reputational risks as conflicts evolve.
Insider Selling & Divergent Analyst Views: Recent large insider sale and split analyst ratings may further pressure near-term sentiment if performance falters.
Summary:
Redwire Corporation (RDW) is an emerging leader in next-generation space and defense infrastructure, distinguished by recent high-profile contract wins and active expansion into both commercial and government markets. Despite a sharp YTD selloff, positive technical momentum, a strong options market bias, and a robust contract backlog set up a constructive short-term backdrop—albeit with risks of over-extension and pullback given lofty RSI readings and sector volatility. Medium-term performance will rest on Redwire’s ability to execute complex projects profitably and deliver on ambitious revenue goals. Investors should weigh near-term momentum against execution and financial risks, monitoring contract progress, margin trends, and industry developments closely.
I’m thinking of a different ticker forget you read that. RDW seems like an interesting LEAP play, I’m in when I have more available funds (hopefully after monday)
I’d love to make the argument about company specifics and niches and all of that, but OP’s argument is literally just that they’re down from ATH by a lot and some hedge funds are buying in. Literally the same case with LUNR.
In terms of space exploration, LUNR focuses on moon-based orbital and exploratory infrastructure. Except both IM1 and IM2 have failed.
RDW has a shit ton of different niches, but one of their main ones is deployable technology in earth orbit. Now that would be really great and interesting in 2023, but unfortunately Gateway is practically dead.
Now, if you genuinely think RDW has upside, be my guest and “invest”. But to me, until they have some actual workable technology that they’re dominant in and not just a company that gobbles up random ass startups, I’m not buying. Even if it’s at 50 cents.
my RDW leaps are +30% right now and I'm confident that they will double...sell or hold?
with the cash I could start an APLD position or add to my existing NBIS or ASTS...