Virgin Galactic Holdings (NYSE: $SPCE) stock price has risen 46% over the past month as they have been creating ties with major world wide companies.
Last week Virgin Galactic Holdings named former Disney executive, Michael Colglazier, as their new CEO.
Colglazier’s responsibilities when he was employed at Disney revolved around managing the theme parks and customer experience.
It is fair to say that a man who was in charge of customer experience/service is not the ideal fit for a company who’s business model is launching people into space.
One would assume an individual with knowledge of space exploration would be a better fit. Or even someone with a college degree in Aerospace engineering.
So what was the reason for naming Colglazier as their CEO?
First off, Colglazier worked for Disney for over 30 years where he helped grow the company to the multibillion dollar super power it has become. This alone creates an attractive candidate for CEO of a fairly new company.
Next, the new Virgin Galactic CEO worked alongside Disney’s famous “Imagineers” for decades. These people’s role is to think up the creative new ideas Disney brings to the world and make them a reality.
Virgin Galactic needed a CEO with creativity as they are one of the first companies ever to create a business model that involves launching, basically untrained civilians, into space for entertainment purposes.
One of the most important features about Virgin Galactic’s new CEO is his strong passion for space travel.
Colglazier’s childhood dream was to become an astronaut, and he has been quoted saying “Space Mountain is actually my favorite attraction.”
With this information it is now fair to say that Virgin Galactic made a good choice naming Colglazier as their CEO.
And who knows, maybe Colglazier will bring the idea to create space travel themed amusement parks across the world.
Along with Disney, Virgin Galactic has linked itself to another multibillion dollar organization. Back in June, they signed a deal with the biggest space exploration company in the world, NASA.
The deal consisted of NASA aiding in the training program for civilian astronauts. From Virgin Galactic’s perspective teaming up with the most experienced company in the industry is setting them up for future success.
Together, the two companies will create a training system that will enable ordinary citizens to take on a few roles as astronauts.
The new training system will be called “private orbital astronaut readiness program”.
The last company to link with NASA was Elon Musk’s SpaceX. Both companies have prospered immensely from teaming up. Virgin Galactic is looking to do the same.
As Virgin Galactic does not yet have a spaceship capable of sending humans to space, partnering with NASA they will be able to utilize NASA’s spacecraft’s and technology.
NASA clearly foresees profit and promise in the idea of recreational space travel.
The future space missions will involve launching civilians into space and docking onto the ISS for a short period of time.
Virgin Galactic has set the path for a bright future for themselves as they have surrounded the organization with people and a company which has the exact experiences, intelligence and technology they need.
While Virgin Galactic’s stock price has been soaring over the past month it may not be time to jump on it yet.
All of the additions to the company revolve around future success and the stock price will likely take a hit due to current economic conditions before it makes anymore significant gains.
Overall, watch its stock price for a decent sized dip in price and then load up on shares.