Quick overview
Trades under the ticker ACCMF
Download their most recent Investor Deck Here
See their last Quarterly Report Here
Mega Trendy Huge Growth Sector
Space sector is poised for massive growth and to get a lot more attention in the coming weeks months with Blue Origin and Virgin Galactic getting into space and high profile Space SPAC performing well and De-Spacing. Also these companies going public via spac in the space sector are seeing crazy valuations companies whose current revenues and projected growth equally comp that of AAC Clyde Space are going public at evaluations from 800 million to 1.3 billion see for example the CFV merger announced this past Tuesday. They project 7 million in revenue for 2021 and have a 850 mil evaluation, and yes the stock jumped on the merger news this company has current market cap at 70 million, yes 70 not 700! Which leads us right into our next criteria…..
Deeeeeep Value
Trading a third of book value
modestly projecting positive EBITDA by Q1 2021
holding more cash then debt on balance sheet
Growing rapidly but on verge of huge growth
In Q1 net sales grew 55% YoY
Earnings before interest grew 52% YoY
EBITDA improved 92% projecting EBITA positive in q1 ‘22
Order backlog currently (including the three recent acquisitions) 47 Million USD
Last week announced largest contract (so far) for their Space Data As A Service (SDaaS) with Wyvern for 11.7 Million dollars
In the month of June they have had multiple PR’s of contracts totaling over 20 million dollars
Yes the current mkt cap IS 70 million you read that right
Wide Moat
Although the company operates on multiple levels in the space industry
as shown here
After speaking with two people well connected in the space industry and listening carefully to the CEO presentation and investor calls there biggest growth point is their recent offering of Space Data As A Service they in house design, build, test, launch, operate and provide the data to the customer. So all the customer has to say to Clyde is “I need this data” and clyde does everything in house. The company has one contact that takes care of literally everything they just get the data, this allows the companies totally focus on what they do.
No other company is offering this now and they are seeing very strong interest including the recent 11.7 mil USD deal from Wyvern.
Given the insane that Morgan Stanley is projecting space data a TAM reaching 1 trillion by 2040 it’s easy to see why industry insiders and the ceo are so excited about being first to market with this offering.
The SDaaS program already has massive partners such as Orbcomm and is also funded by European Space Agency and the UK Space Agency
[Speaking of Orbcomm last august Orbcomm/ SaaB / AAC formed a consortium, ”in equal terms” ,
VDES (VHF Data Exchange System) a better AIS-system (Automatic Identification System) for the marine for military and commercial applications.Solid proven management team
Company has partnered with NASA and gets funding from ESA and the UK Space Agency
Clyde’s has evolved through numerous acquisitions but it is a long standing trusted name since 2005.
Their new CEO Luis Gomes successfully ran Surrey Satellite till a eventual buyout from AirBus
Designed and built the UK’s first spacecraft
Will Whitehorn co-founder and former president of Virgin Galactic sits on the board since 2018 and owns 330 thousand shares (hasn’t sold).
President of UK Space
He is also set to launch the Seraphim ETF a UK based space fund. (Possible catalyst)
Will was on BBC last week talking very bullishly about us being on the verge of a industrial revolution and referred to to AAC Clyde as “my company” you can watch the video here he mentions AAC at the 1:26 mark
112 employees across 4 HQ’s worldwide in 3 continents
Recent acquisition of SpaceQuest a highly profitable company according to a Edison Group analyst establishes a U.S presence as it has contracts with SpaceX, NASA, Air Force, and navy and also helps their SDaaS product.
Clyde has partnered with NASA in 2018 in launch of Spacehawk
There other recent acquisition Omnisys nailed a huge deal 2 weeks before the acquisition completed signed 38 Million USD deal with the European Space Agency.
This contract will net nearly 14 MIL USD to start with.
AAC Clyde Space trades on the swedish stock exchange under the ticker AAC and it also trades on the OTCQX under the ticker ACCMF
The disadvantages of this company not being traded on a major US exchange are obvious but there are advantages and that is namely being that it is a foreign company and it is not listed on a major exchange most (all?) institutions cannot invest in this company, also many investors simply won’t look at anything not on the big boards. However, that creates a large opportunity for the smart retail investor to get in on the ground floor of a huge opportunity at prices severely lower then when hedge funds and institutions will be paying in short term if the company follows through on its current very achievable business plan.
Also given that the financials are in SEK it is annoying and a barrier for people to dig in here having to convert everything into dollars.
There is also opportunity because of this in the near term that although this stock is very popular on Swedish exchange and there is indeed a wonderful discord server dedicated to this company of some wonderful very knowledgeable swedes being that there main HQs are in Sweden and the UK this company is virtually unknows at all in the US you can search twitter ihub yahoo msg boards far and wide you will barely find a peep about this company. But I feel that will change very soon.
Full Disclosure: I am long ACCMF and have no plans of selling any shares in the next 30 days from the publication of this post.