Once again the SKY and Space Global Ltd (ASX: SAS) share price has been a big mover on the market today, rocketing almost 7% to 23.5 cents.
This gain means the communications infrastructure company's shares have now rallied by a massive 180% year-to-date.
Today's jump is in relation to an announcement out of the company this morning regarding the successful testing of its ground and space communications system.
According to the release all functional communication capabilities of its 3 Diamonds nano-satellites have been tested successfully. These include the transmission of voice calls, instant messaging services, data transfers, and the uploading of software upgrades.
As a result the company believes its ground station and software are "space ready" ahead of the launch of the nano-satellites in May.
Should you invest?
I must admit to being very impressed with SKY and Space Global's plan to deliver affordable mobile coverage to an estimated four billion people that are currently without it.
Management has previously estimated that its full Equatorial constellation of 200 nano-satellites has the potential to generate between US$600 million and US$1 billion in annual revenues.
Clearly there is a huge opportunity for the company and if it can deliver on its promise the sky is the limit. But there is still a long way to go until that happens.
Its talented management team are certainly capable of making it a reality, but for now I would suggest investors keep the company on their watch list.
After all, should the 3 Diamonds launch not go as planned, its shares could come under significant selling pressure.
So for now I would suggest investors stick to traditional telco companies such as Amaysim Australia Ltd (ASX:AYS) or Vocus Group Limited (ASX: VOC).
