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2026-08-01 10:17 • The Motley Fool Neutral Axe Cap view: Selective

A $10,000 investment in Rocket Lab three years ago would be worth approximately $81,000 today, despite a 61% drawdown from its peak of $151. The company has demonstrated strong operational growth with revenue increasing from $245M (2023) to $602M (2025), a record backlog of $2.2B, and a major $266M Space Force contract. However, the pending $8B acquisition of Iridium Communications raises concerns about financing costs and dilution, with the company still unprofitable and trading at over 50x trailing revenue.

Axe note: Rocket Lab’s 8x return masks risks from a pricey Iridium deal and big losses.

2026-08-01 10:15 • The Motley Fool Positive Axe Cap view: Selective

Ares Capital (ARCC) offers a 10%+ dividend yield, significantly higher than the S&P 500's 1.1%. As a BDC required to distribute 90% of taxable income, the high yield is justified. The company has maintained or raised its dividend for 17 consecutive years with minimal losses on its $73 billion in cumulative investments. Despite recent core earnings dipping slightly below dividend payments, realized gains have more than compensated, and the company carries forward $1.38 per share in taxable income from the previous year.

Axe note: High dividend yields like Ares Capital’s rarely come without trade-offs, but here’s why it still makes sense.

2026-08-01 10:06 • The Motley Fool Positive Axe Cap view: Selective

Rocket Lab announced an $8 billion acquisition of satellite company Iridium, with an expected mid-2027 closing. The combined company is projected to become profitable and free-cash-flow-positive by 2027, with analysts forecasting $137 million in earnings and $425 million in positive free cash flow. The acquisition positions Rocket Lab as a vertically integrated space company offering satellite communications, positioning/navigation/timing, and IoT services—markets where SpaceX has limited presence.

Axe note: Rocket Lab's $8bn Iridium buy may turn the company profitable by 2027, reshaping satellite services with global reach.