KSS kleos space s.a
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Reddit DD

  1. Fain87
    14 Posts.
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    20/07/21
    04:44
    Post #: 54616546
    Some Reddit DD i saw on ASXBets subreddit.

    https://www.reddit.com/r/ASX_Bets/comments/onh65d/why_i_like_kleos_space_as_an_investment_dd_and/

    Why I like Kleos Space as an Investment (DD) and why it could 10x (KSS.ASX) (KESPF.OTC)

    W****hy I like Kleos Space as an Investment

    Tickers

    KESPF:OTC

    KSS: ASX

    KS1: FrankFurt

    Current Price: $0.97

    12 Month Price Target: $5

    About Kleos

    Kleos Space is a space enabled, activity-based intelligence, data as a service company based in Luxembourg, US, UK and Australia. Kleos Space aims to guard borders, protect assets and save lives by delivering global activity-based intelligence and geolocation as a service. The first Kleos Space satellite system, known as Kleos Scouting Mission (KSM), will deliver commercially available data and perform as a technology demonstration. KSM will be the keystone for a later global high capacity constellation. The Scouting Mission will deliver targeted daily services with the full constellation delivering near-real time global observation

    Huge Upside with 549 Billion Market

    Kleos operating in a HUGE market that allows room for many to grow. Even attaining a small sliver(e.g. 0.5%) of marketshare of the 549 Billion space market gives Kleos Big upside from their current 160M valuation.


    Source:https://news.satnews.com/2021/06/28/kleos-spaces-polar-vigilance-mission-smallsats-enroute-to-cape-canaveral-space-force-station-for-launch/

    Using Radio Frequency technology their satellites Geo-locate is a niche that sets it apart from other Space Industry firms and is very attractive as they can sell the actionable data to clients in the markets below.

    •Defense and Security Market

    • Maritime Intelligence Market

    • Insurance Market

    • Regulatory Market

    • Environmental Protection Market

    Piracy, Overfishing, Smuggling, Geo-Tracking, are big concerns from Governments and they devote a large portion of national budgets to combating these issues.

    Disrisked Downside with Cheap Valuation & Earlier Cash-Flow Breakeven

    Launching your own satellites implies alot of risk. It’s a binary event. Either it takes off successfully or it explodes. Kleos Space is a client of SpaceX and pays them for a successful launch. Downside is mitigated and the whole thing is insured for Kleos and doesn’t have the same risk an Satellite Manufacturers.

    Near-Term Catalysts

    Client Deal Announcements

    3rd Cluster of Satellites Launched

    4th Cluster of Satellites Launched

    Operating Break-evan reached (EST 2H 2021)

    US Expansion (Kleos pursuing over 30 US government customers).

    International Partnership Announcements

    NASDAQ Uplisting

    Peer Analysis


    Even though the 6 above are listed as a competitors. Kleos is not a manufacturer of satellites and doesn’t have the same risk as the above companies. Also the valuation of around 160 Million(not Billion) makes it attractive investment wise as they can recover their CAPEX costs with only a couple client contracts.

    Conclusion

    Attractive Valuation of only 160Million, Niche Focus on Radio Frequency Geo-Location services and successful cluster launches deliver a strong likelihood of Kleos Space being an attractive investment. Existing successful cluster launches improve the data quality,

    ESTIMATE

    2021 Expected Revenues: $7M

    2022 Expected Revenues: $50M-125M

    12 Month Price Target:$5.00

    Disclosure: I own shares in Kleos Space and love this stock.

    KSS Price at posting: 98.0¢ Sentiment: Buy Disclosure: Held
    Likes Created with Sketch. 5  Upvote
    lightbulb Created with Sketch.  Great analysis
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