Momentus Stock – A Pure Play on Space Transport

October 12. 2020. 5 mins read

Investing in a company with no revenues is like fronting some guy you don’t know 50 bones for a sack of chronic. First, you need to trust that he’ll actually return with your product. If he does return, you’re hoping it’s the skunk he promised, and not some Mexican brick weed. If he does return with sub-par product, you’re not getting your money back. In other words, you need to trust someone pretty well to give them money for something sight unseen. The same holds true for companies with no revenues today, but promises of revenues tomorrow.

To make matters even worse, we now have pre-revenue companies going public through special purpose acquisition companies (SPACs) where proper due diligence of the type found in an IPO S-1 filing document is substituted with a forward-looking glossy investor deck which is generally a copy-paste job that has the same look and feel as the rest. Today, we’re going to look at the proposed SPAC deal between space startup Momentus and Stable Road Acquisition Corp.

Stable Road Acquisition Corp

What does cannabis have to do with space? Not much, which is why we’re puzzled that Stable Road Acquisition Corp pivoted from cannabis to space. “While our efforts to identify a target business may span many industries and regions worldwide, we intend to focus our search for prospects within the cannabis industry,” said the SPAC’s S-1 filing which goes on to talk about how helpful Stable Road Capital’s pr

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