Virgin Group announced late yesterday that they would be selling a 12% stake in Virgin Galactic (NYSE: SPCE), the conglomerate’s space focused venture that develops commercial spacecraft and aims to provide retail spaceflights to space bound travelers.
“It’s a scam,” said Sir Richard Branson during our virtual interview with him this morning. “The whole company is a scam. In 2003, I had an idea that we could claim space travel could be a real thing, and market it like no one has ever seen. It’s like selling real estate on the moon.”
Branson, a notorious and successful British business magnate, who was knighted by Prince Charles in March of 2000, stated “At the time I thought ‘Hmm, it can’t do any worse than Virgin Cola.’”
Shares of Virgin Galactic ($SPCE) traded sharply lower on Tuesday, falling 9.28% from Monday’s close.
“It really is an idiotic idea. I can’t believe we have taken this far. I thought for sure someone would have called our bluff, but here we are. Promising to take people to space. Haha.”
Virgin Galactic’s market cap was down to $3.7B as of Tuesday’s close of business.
When asked about what the proceeds of the liquidation would be used for: “I need money to fund my coke habit, and to buy another island so that my weirdo grandsons Phenol and Star can go there and hunt without hurting anyone else,” claimed Branson. “I have also been turned onto this new sort of sex-meditation, but ladies of the night don’t cost what they used to,” Sir Branson continued.
Suvretta Capital Management is the largest outside investor in the company, with a 2.61% stake. When asked for comment, Suvretta’s senior portfolio manager Patrick Royce stated “Look, we know the whole company is a scam. But who cares. The financials look good, and does it really matter that there isn’t a real business in place? Plus, look at the way chart is trading right on the 45 day MVA. Looks bullish to me.”
Suvretta’s 5.5 million shares, valued at nearly $97M, are just above the 5.2M shares owned by The Vanguard Group. “We believe in Sir Richard,” added Royce.
“I’ve been high or drunk for 60 years,” said Branson. “I’ve made love to more women and men than you even know in your life. I was in the TV show ‘Friends’ for god’s sake. If I want to start a fake company, and then sell a large part of it, that is my right. I’m a knight! Like King Arthur! And don’t forget I am a tax exile, so I won’t be paying any taxes on this either,” referring to his 2013 dissolution from British residency which nearly stripped him of his knighthood.
“I mean, sure. I would love to get to space one day. But, who says we’re not in space right now? And in that reality, isn’t Virgin Galactic a real company and worth…whatever,” Branson pondered.
Shares of Virgin Galactic were up in after-hours trading.
Source of featured image: Flickr
Written by Caveman Capital