Yes, we saw the piece during research. We think the contracts are not going away, they're moving from SDA to SDN. The network demand from satellites will only grow. The idea that SpaceX will take funding away from players like York is also unlikely.
Congress is very likely to insist on competition (as it has before), SDA was initially created to ensure competition and prevent the DoD from depending on just one Prime. So while SpaceX will be the largest player, I really doubt Congress will allow SpaceX to take any funding away from smaller players (who are cheaper too).
Also, the product offering is completely different. SpaceX offers access to their satellites but still controls and owns them, while York sells satellites and allows the DoD to do whatever they want with them, including running their own software on them.
Keeping control of assets in orbit will be a national security issue. Letting only one or a select few Primes have this, especially if it means losing ownership is unlikely.
What a SpaceX IPO will do is push up average multiples in the industry, which will push up the price of YSS. The workplace culture issues are not verifiable, and angry ex-employees are rarely a trusted source. Even so, it is not an integral part of the thesis.
And as for quality, YSS is 50% cheaper than its closest competitor, and they are active in acquisitions while making their offering stronger and cheaper. So we think the market fit there is very strong.
I’ve been looking for research for York for a while, thank you!
Thanks
Love this. Thanks for highlighting. It’s going on my watchlist!
It's definitely a very attractive name. It's also so under-covered.
Great work - really enjoyed this.
thank you
Any thoughts on this report from Wolfpack? They appear to be short.
https://www.wolfpackresearch.com/items/yss%3A-lost-in-space-%E2%80%94-the-pentagon-just-killed-96%25-of-york%E2%80%99s-revenue-
Yes, we saw the piece during research. We think the contracts are not going away, they're moving from SDA to SDN. The network demand from satellites will only grow. The idea that SpaceX will take funding away from players like York is also unlikely.
Congress is very likely to insist on competition (as it has before), SDA was initially created to ensure competition and prevent the DoD from depending on just one Prime. So while SpaceX will be the largest player, I really doubt Congress will allow SpaceX to take any funding away from smaller players (who are cheaper too).
Also, the product offering is completely different. SpaceX offers access to their satellites but still controls and owns them, while York sells satellites and allows the DoD to do whatever they want with them, including running their own software on them.
Keeping control of assets in orbit will be a national security issue. Letting only one or a select few Primes have this, especially if it means losing ownership is unlikely.
What a SpaceX IPO will do is push up average multiples in the industry, which will push up the price of YSS. The workplace culture issues are not verifiable, and angry ex-employees are rarely a trusted source. Even so, it is not an integral part of the thesis.
And as for quality, YSS is 50% cheaper than its closest competitor, and they are active in acquisitions while making their offering stronger and cheaper. So we think the market fit there is very strong.
Thx for sharing
Thank you for sharing this
ty hopefully you found the research useful
Thoughts after SpaceX SDN award?
Great article man, actually interesting
Subscribed, would love to have you along too🙂🙌