Have You Heard Of LEO Stocks?

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Whoever figures this out will likely become the world’s first trillionaire… This startup plans to mine an asteroid… Why LEO stocks need to be on your radar… A simple way to profit…

511 Davida

  1. The most valuable known object in our solar system is called 511 Davida…

It’s worth an estimated $27 quintillion—or roughly 67,000X the value of all real estate on Earth.

511 Davida is an asteroid. Like many asteroids, it’s densely packed with vast amounts of valuable minerals, including nickel and cobalt.

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Whoever figures out how to access these treasures of space will likely become the world’s first trillionaire.

AstroForge's First Mission

  1. Last week, asteroid mining startup AstroForge announced its first missions…

In April, AstroForge will test how its refining technology works in space. A customized rocket will carry an “asteroid-like” material to orbit, vaporize it, then sort out and collect metals from the debris.

For the second mission, planned for October, AstroForge will complete a fly-by of a small near-Earth asteroid and scan it for resources.

If successful, AstroForge will be closer to mining an asteroid than any company before.

Of course, there are still plenty of hard problems to solve.

For one, only about 8% of asteroids are rich in metals. The rest are worthless piles of rock. And there are hundreds of thousands of them in our solar system. So, you have to pick the right ones.

Then, there’s the extraction process. Unlike on Earth, where minable minerals tend to be concentrated in one area, resources tend to be scattered all over an asteroid. This will require processing an awful lot of material.

The final challenge is bringing the valuable minerals back into the atmosphere. You can’t simply parachute tons of minerals down to Earth’s surface.

Here’s the most exciting part: Many small companies are working on solving these problems. I expect they’ll create many incredible investing opportunities for us in the years ahead.

A Space Opportunity

  1. Here’s one space opportunity you can profit from immediately…


Traditional satellites orbit 20,000 miles or more above Earth. That’s mainly because Earth’s gravitational pull is weaker the farther out you go—so large satellites can stay up for longer.

But satellite technology has improved by leaps and bounds. Satellites that used to be as large as a bus are now the size of a shoe box.

These satellites can easily be deployed in LEO—or Low-Earth Orbit—just 100 miles to 600 miles from the Earth’s surface.

  1. LEO satellites are great for taking ultra-high-definition pictures...

Older, higher-orbiting satellites can only take an image of a certain location once a day, at the same time every day.

That’s fine for mapping the planet. But it doesn’t work for monitoring events around the world as they happen.

LEO satellites are the answer. They can circle the Earth about every 90 minutes and take images of the same location many times throughout the day.

Also, getting LEO satellites into orbit is a lot cheaper. It costs about $2,300 per pound to launch an LEO satellite compared to $14,000 per pound for an older one.

And, because they’re closer to the ground, images have a much higher resolution.

  1. LEO satellites serve many different industries…

When Russia was preparing to invade Ukraine, the Kyiv government used real-time data from LEO satellites to prepare its defenses, spot military convoys, and track enemy movements.

Other governments could use the same techniques to monitor border crossings or to support humanitarian aid initiatives.

Shipping companies can use LEO satellites to track and manage port traffic.

And since images are so precise, mining companies can rely on them to monitor stockpiles of commodities.


Gaining Exposure To LEO Stocks

  1. An easy way to profit from the LEO opportunity...

An easy way to gain some exposure to LEO stocks is to buy the Procure Space ETF (UFO).

However, the ETF also includes companies like Virgin Galactic, which offers space travel... Viasat, a satellite internet provider... and Dish Network, a TV company.

So, just understand you’re not getting a “pure play” on LEO stocks through the UFO ETF.

Article by Chris Wood, Chief Investment Officer, RiskHedge

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