What impact will the Pentagon’s UFO report have on space stocks?
- The US Pentagon will soon release a report on UFO sightings.
- According to the operator of a space ETF, this is a conversation that "needs to be had”
- Space debris poses a potential problem for the space industry.
The US Pentagon is expected to release an unclassified report detailing UFO sightings. An early copy of the report was already sent to US lawmakers who confirmed it doesn’t rule out the prospect of a hostile alien force, although there is no evidence to suggest this to be the case.
Who better to discuss what impact the upcoming report will have on space exploration stocks than Andrew Chanin, the CEO of ProcureAM and operator of the Procure Space ETF (NASDAQ: UFO)?
UFO conversation ‘needs to be had’
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Fox Business News host Stuart Varney asked Chanin if the Pentagon report would bring unwanted attention to space and space stocks. The executive answered this is a “conversation that needs to be had” in order to address the hundreds of documented first-hand UFO sightings from military pilots.
In theory, it is possible that the UFO sightings are aircraft piloted by rival nations that are 100 years more advanced than anything in the American military arsenal. It could also be that these sightings are very much “another lifeform,” he said.
Meanwhile, the CEO is more concerned with the issues associated with space debris. There are already nearly 3,000 orbiting operational satellites while some companies want to launch tens of thousands of new satellites into low Earth orbit.
That can cause additional debris and traffic. These are potential risks.
However, space debris challenges could also open up opportunities for a new emerging sector associated with space. Innovating companies can figure out ways of removing and potentially even re-using pieces of debris, he said.
UFO ETF offers exposure to space revenue
Chanin explained his firm’s ETF mostly includes companies that derive most of their revenue from space activities. Some of the more familiar names in the ETF include Virgin Galactic Holdings Inc (NYSE: SPCE), Maxar Technologies Inc (NYSE: MAXR), and Orbcomm Inc (NASDAQ: ORBC).
At least 80% of the underlying index includes companies that generate a “majority” of their revenue from space related businesses, activities, or services. The other 20% include aerospace behemoths like Boeing Co (NYSE: BA) that have a “large presence” in space activity.