Astrotech Corporation (NASDAQ:ASTC)

CAPS Rating: 1 out of 5

The Company develops and operates space flight hardware assets, a provider of manned and unmanned payload processing services, and an entrepreneurial force in space commerce and developing space utilization applications such as microgravity processing.

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Player Avatar szett27 (88.71) Submitted: 5/22/2014 4:41:46 PM : Underperform Start Price: $2.40 ASTC Score: -19.60

Reading through the latest 10-Q, liquidity concerns as well as debt arrangements are risk as long term debt may be accelerated as current debt. Reliance on U.S. government contracts especially through 2016 with current budget uncertainty could be especially problematic for Astrotech. For a company that has been around for a long time the balance sheet is strikingly sparse of assets. Cash flow is weakening as well. When commercial crew gets to the Cape with routine missions revenue may improve. Therefore while this price may be attractive for a trader, as a long term investor I would stay away for at least the next 3 years and continue to read the companies statements to see if a turnaround is in their future.

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