Investment trust insider on Seraphim Space – James Carthew: Seraphim Space is coming good
Seraphim Space cratered soon after lifting but now seems to have momentum on its side.
I last wrote about Seraphim Space (SSIT) back in August 2024. At the time, the trust was trading on a 43% discount, but its fortunes have been transformed since then. Investors who took a leap of faith at the time, when the shares were trading at 55.4p, are now sitting on a 45% gain. However, with the company still trading on a 20% discount and excitement building within the portfolio, there could be more to go for.
The rally really took off in May this year. SSIT had been highlighting its exposure to the burgeoning defence sector for a while, but in April the trust published a white paper on the role of that SpaceTech could play in Europe’s defence, especially in the context of the US playing a smaller part in this. This appeared to be the moment when investors finally woke up to what this could mean for the portfolio.
SSIT identified eight European holdings with defence-related exposure and a further 16 outside Europe. It reckons that SpaceTech will account for a growing proportion of growing defence budgets. Applications include surveillance, secure communications, and navigation. SSIT pointed out that much of this technology can also be used for peaceful purposes.
Sadly, we can see the use cases for this technology demonstrated in Ukraine – from the use of Starlink (not in SSIT’s portfolio) as a communications tool, to the dramatic increase in the use of drones… read more here