TeamViewer, Kleos Space, Palantir - New opportunity after correction

Battle of the billionaires

The space industry is booming, not just because an arms race is taking place between the richest of the rich, Elon Musk with SpaceX and Amazon founder Jeff Bezos with BlueOrigin. They are joined by the founder of the Virgin group of companies, Richard Branson, who made a successful flight into space last year, even before Bezos. However, in addition to space tourism, several beneficial activities can serve humanity in the future in terms of safety, pollution and economy.

Currently, analysts estimate that satellite-based Earth observation has a potential of around EUR 4 billion, with an annual growth rate of 6%. Kleos Space, an Australian-founded and Luxembourg-based company, has positioned itself as a data-as-a-service provider in this space and is looking to grow significantly through a recent successful placement of USD 9.4 million to scale its data and thus its offering to clients.

The data is geospatial data obtained from satellites flying around the world. Kleos Space is the first company to fly clusters of four satellites, each receiving radio transmissions from the ground. The focus at the moment is on the maritime domain. Data is being recorded and analyzed from the South China Sea, East and West Africa, and the northern coast of Australia. When the data is received from each satellite, multilateration, a mathematical calculation, is performed that allows radio activities to be accurately located.

Project postponed

So far, 2 clusters have been launched into space, with the third scheduled to go up in conjunction with the next SpaceX Transporter Rideshare flight as early as January. However, problems with the transport vehicle caused delays that management says will not have a long-term financial impact on the life of the mission. The new launch date for the third cluster has been set for April when the satellites will be part of the SpaceX Transporter-4 mission.

Kleos' fourth satellite cluster, the Observer Mission (KSF3), was not affected by the patrol mission delay and is still scheduled to launch in mid-2022. CEO Andy Bowyer stated the medium-term goal is to launch 20 clusters into space. Due to the current market correction, in which peer group companies from the US such as Rocket Lab and Spire lost significantly more value, Kleos Space corrected from highs of EUR 0.72 last year to currently EUR 0.44. Its market capitalization is currently EUR 70.64 million, while its competitors are already more than USD 3 billion.

The innovative company will present itself at the International Investment Forum (IIF) on February 17, 2022. Interested parties can register free of charge at ii-forum.com/kleos-space-sa-cdis.

Countermovement started

The TeamViewer AG share has moved against the negative market trend since the beginning of the year. The share of the Goeppingen-based company, which had been in free fall since October of last year, was able to break away from the lows of EUR 10.71 and is currently trading at EUR 14.99. A sustained breakout above the EUR 15.15 mark could generate a new buy signal once again. The 200-day line is already at EUR 22.13.

After two forecast reductions in the past year, the preliminary result met the revised target. On February 2, the MDAX stock will present its preliminary, unaudited figures. The share is currently experiencing a countermovement in a downward trend and will have to continue to deliver during the course of the year to achieve a trend reversal.

Under the wheels

The share of data analysis specialist Palantir Technologies was also hit hard. Despite promising deals in the private sector, including a large contract with South Korea's Hyundai Heavy Industries, and solid business with the public sector, the stock has lost about 30% since the beginning of the year. The long-term outlook remains positive, with projected growth of more than 30% per year.

However, from a chart perspective, the situation looks negative in the short term. After breaking through several support zones, the value is currently quoted at USD 13.53. A test of the next support at USD 11.42 is not unlikely.

Currently, the technology sector is correcting due to the fear of several interest rate hikes by the FED. Palantir and Kleos Space fell significantly, but the long-term outlook is positive. TeamViewer was able to buck the trend.