Nikola, Kleos Space, Xiaomi - Earth is not enough

Dense network for better data

The industry is enormous. While comparable companies such as Rocket Lab, with around EUR 3.5 billion, or Spire, with EUR 1.1 billion, have already achieved unicorn status, Luxembourg-based Kleos Space is still moderately valued with a stock market value of EUR 75.43 million. The Data-as-a-Service company launches satellite clusters, each consisting of four units, into space to scan the Earth for radio transmission signals for geolocation. The Scouting Mission satellites are launched into a 37-degree inclination and collect data over key areas on the high seas such as the Strait of Hormuz, the South China Sea, East and West Africa, the Southern Sea of Japan and the northern coast of Australia.

The data obtained is then processed and packaged using algorithms developed in-house. For coastguards, navies and maritime security companies, the sensitive data is essential to detect illegal and covert activities such as piracy, drug and human smuggling, illegal fishing and border violations. Insurance companies and regulatory agencies are also important clientele. Kleos Space offers companies a subscription model and collects recurring revenue as a result. According to company sources, the Australian-founded Company is on the verge of signing 170 "qualifying contracts" for its services, including 48 "signed contracts with clients that include a free trial period to evaluate data products prior to revenue generation."

Further expansion, big goals

Raising USD 9.4 million from a private placement, Kleos Space is working on expanding its satellite network. Two clusters have already been launched into space. Number three is to follow in January in conjunction with the next SpaceX transporter rideshare flight. Successful funding has enabled the fourth group of satellites, known as the Observer Mission, to be ordered. ISISPACE and Spaceflight already supported Kleos Space's second satellite cluster, which was launched into sun-synchronous orbit by SpaceX's Falcon 9 Transporter-2 mission on June 29, and is responsible for the next order. Like the second and third clusters, the Observer Mission satellites are expected to deliver an additional 119 million square kilometers of data collection capacity per day.

In total, Andy Bowyer, CEO of Kleos Space, plans to launch up to 20 satellite clusters into space. Each new cluster will improve satellite data and increase the number of checks in key areas, leading to solid growth in customer demand. Kleos Space's stock, which is traded in Frankfurt and Sydney, was able to form a bottom in the EUR 0.50 range after a correction of around 25%. In the long term, the business model appears more than attractive.

Successful comparison

The share of hybrid truck developer Nikola is also working on bottoming out at the moment. The prospect of a settlement with the US Securities and Exchange Commission (SEC) in the dispute over statements made by the Company's founder, Trevor Milton, caused the share to set off fireworks and increase in value by around a quarter to EUR 15.56. A settlement with the SEC also boosted the share price. Although Nikola lost around half of its value again the following trading day, the long-term chart picture has brightened considerably. A renewed breakout above the EUR 14 mark would generate a new buy signal.

In addition to the settlement with the SEC, in which Nikola reportedly pays USD 125 million, the figures for the third quarter were also announced. As expected, no sales have been reported yet. The Company's operating income for the third quarter of 2021 was minus USD 271.83 million. Earnings per share were minus USD 0.68. Operationally, things are going according to plan after the new management was put in place.

Nikola's new CEO, Mark Russell, commented accordingly, "Validation of the Nikola Tre BEV is progressing, and the vehicles are now being tested and driven on public roads. We have also inaugurated our joint venture production facility in Ulm, Germany, and entered into further strategic partnerships with TC Energy and OPAL Fuels to advance our hydrogen refueling system."

Still in silver place

Once again, the Chinese technology group Xiaomi was able to push ahead of the US giant Apple in smartphone sales. Overall, Xiaomi sold 50% more smartphones in Europe compared to the same period last year. Xiaomi's smartphones also include the Redmi and Poco devices. However, top dog Samsung still took first place with a market share of 30.4%. However, the South Koreans lost around 16%. Xiaomi is getting closer with 23.6%. In contrast, with a drop of 94% YOY, Huawei is running away from the buyers.

Despite the numerous successes, Xiaomi's chart remains battered. If the support at EUR 2.25 does not hold, a further drop into the region around the EUR 2 mark is imminent.

New technologies with the use of satellites make life on Earth safer but also more controllable. Kleos Space is becoming more interesting by expanding its satellite fleet. Nikola is working on bottoming out, while Xiaomi is technically not yet expected to ease.