What Are the Biggest Risks of the SpaceX IPO?

**SPEAKER_1** (0:01)
This is Invest Talk from KPP Financial, helping investors make sense of the markets one day at a time. Here's your host, Justin Klein.

**Justin Klein** (0:16)
Good afternoon, fellow investors, and welcome back to Invest Talk. This is our Monday, June 29th, 2026 edition of Invest Talk. And there's a lot of moving parts in today's market. And understandably, you might have several questions, money-related, hopefully. It's maybe about the broader equity markets, a different asset class, particular company, a sector. We're here for all of it. So I'm Justin Klein, and my goal each and every weekday, long flukes, is to help you become a better investor, help you unpack the portfolio dynamics that are present in today's market. Now, in just a bit, we'll be answering some of your finance and investment questions. We'll give you some topics to keep top of mind for you so that you have better perspective within this market. A lot of hype, there's a lot of headlines. It's easy to get distracted.
Our job is to keep you focused with your feet on the ground, not high in the sky emotional decisions. So don't hesitate to give us a call. 888-99-CHART is the number to connect with us. 24 hours a day, seven days a week. Now, tomorrow we will be hosting our new Wealth Webinar. That's tomorrow, June 30th, 12 to 1 p.m. Pacific Time. You heard that right. Beyond the Yield, How to Invest for Your Income Needs. It's free to join, but you must register by heading over to investtalk.com. So make sure you're going to join. You want to go register right now.
Now in just a bit, we're going to talk about today's Mark Performance and run down the show topics for the hour. But first, let's tackle this caller question now.

**SPEAKER_3** (1:51)
Hi Justin, Luke, I'm calling today about ticker SBSW, I believe it's Sibanye Stillwater. I'm wondering if you think this is a good company to hold on to or if I should take some profits or sell out of it completely. Thanks for your time. Bye.

**Justin Klein** (2:06)
Looking at Sibanye Stillwater out of South Africa. This is mainly a gold miner, but they do mine for other minerals like nickel, chrome, copper, cobalt, et cetera.
They're fairly well diversified. They have some battery metals along with those precious metals. They have platinum, et cetera. It's fairly well diversified, like I said. Earnings this year are expected to be $2.86. That would be almost an all-time high earnings. All-time high was 2021 at $3.83.
It had a very large drawdown from those years when it was trading, let's say, 2021 It was trading up around $20.
Then it fell as low as $3 just recently, earlier last year. Rallied recently back to $20 and now back to $8.70. You can see that large volatility in the name. Market cap is about $6 billion. So kind of in that mid cap range, good cash flow, good profit margins. Let's look at their debt real quick.
Debt doesn't look too bad. I think this is a very high risk play within the material space. You're getting that foreign currency risk with obviously South America or South Africa, excuse me. And you can see how volatile can be from $21 all the way down to $8. But if it's going to make $2 and change even next year, that's about four times forward looking earnings. So overall, I kind of like it, but understand the risk. This is going to be wildly volatile. You need to be prepared for that. Because what happens in these types of situations is that you will get into it for the upside, but they don't understand that downside volatility. And then they start to realize that downside volatility. They get shaken out of it at the wrong time. Let me give you a major support level. Yeah, about $7.25, that would be the next major support level. That's at $8.62 today, so another 10, 15% potential downside before major, major support. So I'd be looking at that number to potentially get out if it gets well below that. But this is a good entry point based on the valuation, based on the fact that I like these exposure to these types of metals over the long term. They were at a great show on Friday. We looked into the story, should you hedge currency risk, dollar, yen, rupee, and the shift in global order. We also answered questions about applied materials, submitted through a comment over on our YouTube channel. And if you happen to miss out on the episode, the best way to get every show is to follow Invest Talk wherever you get your podcast. Now we have a lot of ground to cover over the next 45 minutes or so. Time permitting, we'll get to all of it. Our main focus point is about the biggest risk to SpaceX IPO. This is one of the most exciting events of this year.