One of the best performers on the market on Monday was the SKY and Space Global Ltd (ASX: SAS) share price.
Although the global communication infrastructure company's shares finished the day flat, at one stage its shares were up 9%. This brought its year-to-date return to an impressive 120%.
Why were its shares higher today?
Following the successful launch into space and subsequent testing of its 3 Diamonds nano-satellites, this morning Sky and Space Global announced that it has commenced discussions with strategic industry players.
According to today's release, these discussions include major telco and satellite industry players and relate to the development of its Equatorial constellation from late 2018.
This is great news for the company and its shareholders in my opinion. After all, the sooner these nano-satellites are developed and put into position, the sooner the company can start generating significant revenues.
The full Equatorial constellation will be made up of 200 of the company's nano-satellites and has the potential to generate between US$600 million and US$1 billion in annual revenues according to management.
Should you invest?
With a market cap of approximately $110 million, if Sky and Space Global can deliver on its forecasts then it will no doubt prove to be a very rewarding investment.
However, it is still a little too soon for me to part with my money. For now, I intend to keep a close eye on its development and see what deals the company signs.
In the meantime, traditional telco company Telstra Corporation Ltd (ASX: TLS) could be worth considering at the current share price.
