I have finally opened a position in Virgin Galactic.
This is clearly still a speculative investment at the moment. They are still very much in development and are not up an running. This makes it very hard to calculate the value of this company and so what price is good value. I have got these wrong in the past.
I was hoping to get into a position a lot earlier than I have. However due to some changes I was making with my Interactive Broker account I didn’t want to open a position with them. Freetrade doesn’t have Virgin Galactic (SPCE) in it’s catalog yet either.
Fortunately I have recently found Trading 212 which is another commission free platform that does have Virgin Galactic available to invest in!
Virgin Galactic looked to find a steady price at around $10.50 for a decent amount of time. After a little spike up it dropped to about $7.25. This should have been the entry point, but I missed it. It then rallied up to almost $20 in just over a month. Being nervous of speculative investments I was fighting with myself as to weather to get in or wait for the drop. The types of stocks are prone to rising beyond their value because of hype and excitement. My sensible investor voice is saying “it’s speculative, it’s bound to drop back down again”, but it’s hard to ignore the other voice saying “a bit of good news and this thing is going to the moon”.
I decided I would take a small position when the price came back down a bit, and I bought at $17.10. This way I have a position but I’m not over exposed. I will now monitor this and if the stock has another dip I will try to average down from $17.10.