SpaceX (Nasdaq: SPCX) jumped another 10% yesterday.
The stock is now up 57% since the IPO.
Elon is preparing to unveil his Ultimate Master Plan. And my research discovered 5 hidden partners that could see triple digit gains.
Get details right here – before the big move.
has been public for a few days now. The next chapter is about to begin.
Over the next few weeks, SPCX gets added to a series of major market indexes. And each inclusion triggers a wave of forced buying from passive funds.
Here's how it works. When a company joins an index, every ETF and index fund that tracks it is required to buy shares. It's not a choice. The fund has to own the stock to match the benchmark.
For a company the size of SpaceX, that adds up fast.
Here's the schedule that I’m expecting:
June 18: CRSP index inclusion. Estimated $4–7B in forced buying.
June 18: FTSE Russell inclusion. Estimated $6–9B in forced buying.
June 26: MSCI inclusion. Estimated $3–5B in forced buying.
July 6: Nasdaq 100 inclusion. Estimated $8–12B in forced buying.
That last one is the big one. The Nasdaq 100 is tracked by the QQQ — one of the largest ETFs in the world. Inclusion there alone could force up to $12 billion in buying.
Add it up, and you're looking at potentially $20 billion or more in mechanical buying within about three weeks.
Did you miss the SpaceX IPO at $135 / share? If the answer is YES, please click here.
Now here's what makes it interesting.
SpaceX released only a small slice of its shares in the IPO. Only 4% - 5% of the company’s stock is free trading.
When you combine heavy forced buying with a limited float, prices tend to move sharply. There simply isn't much stock available to absorb that kind of demand.
This is why I think index inclusion could spark a move to the upside for SpaceX stock
There's a flip side worth knowing. Insider lockups begin expiring later this summer, gradually adding shares to the market. The schedule is staggered on purpose to avoid a single flood of selling. Elon's own shares are locked up for a full year.
And as the float grows from those unlocks, the indexes rebalance again in September and December — likely forcing passive funds to buy even more to match SpaceX's higher weighting.
I’m “long” SpaceX and plan to own the stock forever.
Yet my research suggests that 5 hidden SpaceX partners stand to deliver the biggest gains. And I’m prepared to share the details with you.
Ian Wyatt
Editor, IPO Watch