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Technology Stocks : Rocket Propulsion - Roton, Beal, Rotary Rocket, Kelly

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To: RocketMan who wrote (5)3/29/1999 1:23:00 PM
From: Sanjay Varma  Read Replies (1) of 10
 
Yeah, I appreciate the focus on realistic expectations, but I think we're both on the same page in this regard. I certainly don't have any short-term expectations of huge profits! I'm just hoping to create an exchange of information on this sector; an exchange that may bear fruit at some point in the future.

I agree that a comparison with Internet startups is a stretch, since Internet startups have few initial costs and a higher profit margin than any hardware oriented business.

But biotech companies have huge initial costs and deferred revenues. They must rent lab space, hired highly educated scientists, retain lawyers to navigate the FDA, stage laboratory and then clinical trials in a process that lasts several years, etc. As you can imagine, after years of effort a 'failure' might occur in that the drug is deemed ineffective or otherwise harmful to the patient, thus wasting those years of development costs! These biotech "startups" require lots of funding from the first day onwards. Often these companies bolster their fund raising efforts through an IPO and, while the success rate of biotech companies is shockingly low, some do succeed. Based on these similarities, I think that rocket propulsion companies could possibly IPO sometime in the future.

Thanks for the link to Orbital. Do you have any names of other publicly traded launch vehicle/rocket propulsion companies?
-Sanjay
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