DOMINATION REPORT

SpaceX Reduces the Cost of Space Travel



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SpaceX recorded another first, successfully relaunching a used 1st stage of their Falcon 9 rocket. This historic event occurred on April 8th of 2017. What is so noteworthy about this event is that it enabled SpaceX to offer discounted fees for those who wanted to use SpaceX to send their latest technologies orbiting around the globe with a used rocket versus a new one.

The cost to launch a satellite with a new Falcon 9 rocket is about US $60 million, versus approximately $40 million with a used rocket, cutting $20 million dollars of cost is substantial indeed. Along with a 7,000 pound payload of supplies for the NASA Space Station, SES S. A.,Société Européenne des Satellites (SESG.PA), successfully deployed a satellite with the latest technological advances to serve the  world's leading satellite operator. SES operates more than 50 satellites in Geostationary Earth Orbit (GEO) and 12 in Medium Earth Orbit (MEO). SES focuses on value-added, end-to-end solutions in four key market verticals (Video, Enterprise, Mobility and Government). SES was also extremely proud of bragging to its industry rivals through the media about the successful deployment of its newest satellite with a used Falcon 9 rocket.


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What gets me excited about monitoring the activities and successes of SpaceX is that they literally go where no man has gone before. A new industry is being developed, which I like to call Space Technology. SpaceX's advances also help visualize the global presence of the leaders in communication networks today, and the global opportunities for investments as well. As far fetched as it may sound, SpaceX has also unveiled strategies and plans for the colonization of Mars. They also hope to make their reusable rocket available within 24 hours after its return to Earth. SES's latest satellite was also equipped with technology that can explore mining possibilities on nearby asteroids. This isn't science fiction any more.

The successful deployment of satellites from this year's 2 successful launches from SpaceX with the Falcon 9 have brought the names of communication entities Iridium Communications Inc. (IRDM) and SES into my focus. They both are making moves to improve their services and create communication networks with features still to be unveiled to the consuming public. Right now IRDM proudly boasts that its communications network can reach every corner of the Earth, and the latest report of financials illustrate how they can boast with heads high and chests out.

 

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Iridium reversed their losses from a year ago with net income of $24.1 million, that translated into earnings of $0.19 per share. That value was $0.01 less than the consensus forecast but up 35% from adjusted earnings per share in 2015's fourth quarter, reports the Motley Fool. The recent increase of 3 percent in IRDM's stock value expresses the enthusiasm of investors after the 4th quarterly earnings report as well.

Iridium Communications Inc. (IRDM) Currency in USD

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IRDM successfully deployed 10 satellites with SpaceX in January of this year and announced the formation of their NEXT network. The company expects to have 8 of the 10 satellites launched, fully functional in the month of April 2017. With the network in place, the potential for IRDM to see its growth potential materialize is becoming a reality. They plan to launch more satellites for the NEXT network later this year and if the launches are successful, the opportunity to invest in this new network in its infancy exists right now.

SESG is a stock listed on the Luxembourg Stock Exchange and The Paris Stock Exchange. SpaceX's successful launch of SES's satellite opens my eyes to the global opportunities for investment in communication networks. SES may not be a name we are familiar with in the West but they are a dominant leader in global communications networks.

SES S.A. (SESG.PA) Currency in EUR

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The successful launch of the SES-10, which will provide television and other communications services to Latin America leads many to eagerly wait for the launch of the SES-17 already designed and fitted with the components to make the satellite even more attractive to customers in the highly competitive mobility market, and other enterprise markets.

 

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The SES-17 satellite was created in September 2016,  and will cover North America, South America, Central America, the Caribbean and the Atlantic Ocean. SES-17 has been jointly optimised by SES and Thales Alenia Space over the past year, reports Business Wire. SES has plans to launch 9 more satellites this year.

Although SpaceX and Thales Alenia Space are privately held, research into these companies discloses some interesting relationships with publicly traded companies. SES’s portfolio includes the ASTRA satellite system, which has the largest Direct-to-Home (DTH) television reach in Europe, and O3b Networks, a global managed data communications service provider, these two firms are privately held by SES and are definitely entities within the conglomerate that add to the SES's bottom line. The SES subsidiary MX1, which is the firm that got my attention, is a leading media service provider and offers a full suite of innovative digital video and media services. Founded in 2016, this company is publicly traded on the Australian Stock Exchange. The stock is rated by analysts from Reuters as 'outperform' and the company has already become involved in some lucrative deals in regards to broadcasting sporting events.

Micro-X Limited (MX1.AX) Currency in AUD

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It is important to see the globalization of the communication industry as it moves hand in hand with the advancements and activities of SpaceX. Everytime SpaceX successfully deploys a functional satellite, the owners of that amazing piece of technology are able to optimize the services they are providing to their customers and increase the range of distance that can be managed here on Earth. This gives them an even greater opportunity to grow their revenues.

There is now a very strong relationship between SpaceX and the communication industry as they develop space technology. As investors, we now have to embrace the globalization that these firms are creating for our markets here on Earth,  and to consider the investment opportunities every time the Falcon 9 is on the launchpad with new technology headed for space. Reuters notes that SpaceX has a backlog of 70 missions worth $10 billion, which could provide a nice menu of firms to monitor for the future.