To say that I've been fascinated with space technology since I was a little kid is no exaggeration.
See, when I was in the first grade, I met none other than U.S. astronaut John Glenn, the first person to orbit Earth, and a man many will know about as an almost mythic figure in the book and movie The Right Stuff.
I got the honor of meeting America's hero because my dad, a Marine Corps officer, was escorting Glenn on a goodwill tour of our base.
Glenn would go on to become a distinguished U.S. senator and my dad later became the senior military editor of Aviation Week & Space Technology, the bible of the industry.
To this day, my dad and I still regularly discuss breakthroughs in military and space systems.
Just like this one…
So, you can imagine how excited I am as a tech investor to see the United States at the dawn of true commercial space travel, both for tourism and for industry.
It's that second item that I believe will hand investors outsize profits over the next few years. That's because we are starting to launch a new generation of advanced satellites.
In turn, these will be used for telecommunications such as broadband TV and Internet access.
And they will play a vital role in the Internet of Everything (IoE), a global system in which some 50 billion devices will communicate through the Web in just the next few years alone.
[Editor's Note: IoE is going to generate $7 trillion in new wealth – and we're going to get our share. It's a story Michael's following in his Strategic Tech Investor. You can subscribe by clicking here.]
Take the recent cargo flight by Space Exploration Technologies Corp. The company used its Falcon 9 rocket to launch six ORBCOMM Inc. (Nasdaq: ORBC) satellites for machine-to-machine communications that are a part of the IoE.
Though they haven't set a follow-up date, the two space leaders are already making plans to launch another 11 ORBCOMM satellites.
But as upbeat as I am about America's space leadership, I do see one major obstacle ahead…
Fact is, outer space has become something of giant floating junkyard of debris – much of it from damaged, dead satellites – that can rip space craft to shreds.
Scientists estimate that there are 21,000 pieces of wreckage the size of grapefruit or bigger, some as large as a school bus. Any piece of that debris could destroy a satellite or at the very least damage its expensive and sensitive gear.
But there's a big breakthrough on the horizon…
An Israeli start-up called Effective Space Solutions Ltd. has come up with a method of towing these satellites out of harm's way. The company is working to create a "DeOrbiter" Micro-satellite that can be thought of as tugboat for outer space.
Here's how the system works. The DeOrbiter starts by docking to a piece of space junk. It then essentially tugs it into a safe place in spaced known as the "graveyard orbit."
By clearing the debris, the process provides safe passage for all the new satellites that are regularly deployed, as well as the existing satellites currently used for telecommunications, surveillance, and defense purposes.
While Effective Space Solutions is not publicly traded, I've added it to my Space Tech Radar Screen. That way when the company does eventually go public, I'll be sure to let you know.
In the meantime, I want to talk to you about a way to profit from earth's giant space junkyard.
Ironically, this opportunity has essentially been "hiding" from tech investors because the company's technology in question has gotten very little attention from the mainstream media, despite recently receiving a nearly $1 billion U.S. defense contract.
The Junkyard Dog of Outer Space
About the Author
Michael A. Robinson is a 35-year Silicon Valley veteran and one of the top technology financial analysts working today. He regularly delivers winning trade recommendations to the Members of his monthly tech investing newsletter, Nova-X Report, and small-cap tech service, Radical Technology Profits. In the past two years alone, his subscribers have seen over 100 double- and triple-digit gains from his recommendations.
As a consultant, senior adviser, and board member for Silicon Valley venture capital firms, Michael enjoys privileged access to pioneering CEOs and high-profile industry insiders. In fact, he was one of five people involved in early meetings for the $160 billion "cloud" computing phenomenon. And he was there as Lee Iacocca and Roger Smith, the CEOs of Chrysler and GM, led the robotics revolution that saved the U.S. automotive industry.
In addition to being a regular guest and panelist on CNBC and Fox Business Network, Michael is also a Pulitzer Prize-nominated writer and reporter. His first book, "Overdrawn: The Bailout of American Savings" warned people about the coming financial collapse - years before "bailout" became a household word.
You can follow Michael's tech insight and product updates for free with his Strategic Tech Investor newsletter.