Negative Revenues Disappoint the Investors

Seraphim Space Investment Trust Plc (LON: SSIT) is an investment company that operates as a closed-end fund. Its primary objective is to invest in a diversified portfolio of early and growth-stage Space Tech businesses globally. The company was established in May 2021 and currently.

The Dark Side of Startup Investing

Since the company is investing in startups, this involves high risk. The data shows that out of 100 startups invested in, generally, only 5 are able to be successful, covering all the losses. It makes startup investing the most risky asset class out there. The above 5 out of 100 analysis is also proven right in the case of SSIT, as it is showing negative revenues because of realized investment losses.

The consequences

In the half-yearly report of December, the company reported a total revenue of -£1.9M. The negative figure was quite concerning to the stakeholders as it indicated that the company was not generating enough revenue to cover its expenses. Moreover, the company also had to bear selling and general expenses of £13.7M in the same period, which further added to its losses.

The net income of the firm was reported to as a negative £17B, which was a significant decline. The company’s management had to face tough questions from the general partners who invested in the pools.

Technical Analysis and Prediction of SSIT Share Price

The SSIT share price started a particular downtrend in September of last year and after the stock touched its high of £63.2. The SSIT stock has just broken this trend line back in mid-July of this year (shown in the picture above).

At the press time, the SSIT share price is trading at £39.5, which is just above the immidiate Support level of £35.5. Meanwhile, the immidiate resistance is situated at £49.6. The 52-week high is £55.9, while the 52-week low for the SSIT stock is at £26.

The price prediction for SSIT stock will be bullish. The stock has reached a high of £49 and is currently near the support level, which is the immidiate low. The RSI is also just above the oversold level of 30. It gives the uptrend boost to the investors.

Conclusion

Seraphim Space Investment Trust Plc (LON: SSIT) engages in the investment of certain types of startups. The company has not been performing well as the revenues are negative. Currently a downtrend has been broken and the prediction is bullish.

Technical Levels

Support: £35.5 and £26.4

Resistance: £49.6, and £58.8

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks comes with a risk of financial loss.