The SKY and Space Global Ltd (ASX: SAS) share price has easily been one of the biggest movers on the market in the last week.
During this time the shares of this exciting communications infrastructure company have risen a remarkable 71% to 18 cents. This is an incredible 800% higher than its listing price of 2 cents in July of last year.
What does Sky and Space Global do?
The company has ambitions to use its nano-satellite technology to provide affordable mobile coverage to an estimated four billion people that are currently without it.
The company's nano-satellites will form a full constellation that services equatorial countries in South and Central America, Africa, and Asia, as well as airliners and shipping companies in the coverage area.
The testing process has now completed and its first three trial nano-satellites are now expected to be launched in the second quarter of 2017 from the Innovative Space Logistics launch integrator facilities in the Netherlands.
What caused the recent rally?
The rally in the last week appears to be a combination of its nano-satellites being designated as ready for launch and yesterday's news that the company has selected Denmark-based GomSpace to develop and deliver its full Equatorial nano-satellite constellation.
GomSpace will deliver up to 200 nano-satellites for the company at an estimated total cost of between $50 million and $75 million.
The company then plans to launch them into space from the middle of next year using Virgin Galactic's LauncherOne orbital launch vehicle, pending a successful trial of its first three nano-satellites.
Should you invest?
I have little doubt that Sky and Space Global has enormous potential. If its nano-satellites are a success then the company and its vastly experienced management team could revolutionise global telecommunications infrastructure.
But in my opinion an investment at this stage is a little high risk for the average investor. So for that reason I think it would be best to just keep it on the watch list for now and wait for news on how its trial goes.
In the meantime traditional telecommunication companies such as Amaysim Australia Ltd (ASX:AYS), Vocus Group Limited (ASX: VOC), and TPG Telecom Ltd (ASX: TPM) might be better options for investors.
