SPCE has gotten destroyed after the announcement that their first test flight is to be pushed back until May. Despite this massive downturn I want to buy the dip and hold through April and maybe May. One of the imminent risks with any aircraft stock is the potential of failure. This would likely cause even more selling of the stock. In part this is why I like the swing trade to April. It will give time for the market as a whole to recover as well as the individual stock. My target for this stock is $43.98 by April 20th.
I was looking at this too. We are still above the 200 MA on the Daily chart, which is currently still in an upward trend, and any good news would keep it in this trend. This is a risky bet though as the market is taking a dive this week, but this could still be a great long term hold. Terrible Long for short term trading though. I have bled a lot catching falling knives, but I can't imagine SPCE staying down for long. I would wait for a close higher than the previous day before jumping in though.
crawfordpaul
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@Brideax, I agree there is tons of long term value. I also agree that catching a falling knife is generally a bad idea, but if it does go any lower, I expect it will fill the gap and reverse up. Some analysts have $50 as fair value and I believe that price could be seen post-test launch. I like this stock recovering with the market, hopefully by the end of this month.
Brideax
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@crawfordpaul, The long term value is there for sure, I just don't know how soon you would realize any gains. (If I did, I'd be rich). I generally look for short term plays, so for me, this doesn't show a move in the right direction, yet. Let's see if it bounces off the 200MA. :)