To The Moon

Hello everyone! Today i want to share some trading ideas with you!

1.

Here's a roadmap on why I believe $Rocket Lab USA, Inc.(RKLB)$ is one of the most underappreciated small-caps in the market 🧐

Introduction

• Rocket Lab has evolved from its origins as a niche provider of small satellite launches to become a major player in the global space industry that is growing ~20% CAGR to $1.9T by 2032.

• Leveraging its proprietary Electron rocket and Photon satellite platform, Rocket Lab offers cost-effective and reliable access to space, empowering small satellite operators with tailored services. This transformation is driven by innovative technologies such as 3D-printed engines and electric pump-fed propulsion systems -- which have not only carved out a unique position for Rocket Lab in the competitive small launch market but also demonstrated its continuous capacity for innovation.

• Despite facing giants like SpaceX, Rocket Lab is poised to potentially lead the space launch industry. It plans to debut its Neutron tech demo by late 2025 or early 2026, with its first customer launch expected shortly thereafter. This positions Rocket Lab ahead of its competitors, whose non-customer flights aren't anticipated until 2027, with customer launches likely delayed until 2028.

Two Primary Launch Vehicles: Neutron & Electron

• The Electron rocket has established Rocket Lab as a reliable player in the space industry, offering cost-effective access to orbit for small satellites at ~$8M per launch. With 38 successful missions under its belt, Electron has become synonymous with operational excellence and dependability -- attracting a diverse clientele in need of frequent and affordable small payload launches.

• Building upon Electron's success, Rocket Lab is developing the Neutron rocket to target a stronger market segment -- satellite mega-constellations. Designed for heavier payloads, Neutron will accommodate up to approximately 13,000 kg, making it suitable for a variety of missions, including cargo and crew missions to the International Space Station. With a launch price ~$60M, Neutron represents a significant revenue potential per launch -- reflecting its advanced capabilities and larger payload capacity.

• Neutron's strategic introduction is aimed at capturing the growing demand for large-scale satellite deployments. Its partial reusability aligns with the industry's shift towards sustainable and cost-effective launch solutions. Neutron’s timely entry into the market positions Rocket Lab to seize new contracts and expand its influence in the evolving space sector.

Complete End-to-End Space Solutions

• Rocket Lab’s comprehensive approach extends beyond launch services. The company has developed a deep vertical integration, managing everything from payload design to launch execution. This integration reduces reliance on third-party suppliers, thereby mitigating risks and enhancing operational control. Rocket Lab’s ability to execute complex multi-orbit missions showcases its advanced technical capabilities and operational flexibility -- further solidifying its market position.

• The company has a significant backlog that grew to $1B by the end of Q1 2024. Importantly, 42% of this backlog is scheduled for conversion into revenue within the next 12 months, underpinning strong near-term revenue visibility. The Space Systems segment, in particular, is poised to become a major revenue driver -- reflecting Rocket Lab’s successful pivot from purely launch services to comprehensive space solutions.

• The company continues to expand its customer base, securing substantial contracts such as the recent $14M deal with the U.S. Space Force and let’s not forget the $500M government contract secured at the beginning of the year. These contracts not only validate Rocket Lab’s capabilities but also indicate growing confidence among government and defense sectors in the company’s services.

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