The world of publicly traded companies is a vast smorgasbord of investment opportunities, and yet it's just human nature to want the ones that are out of reach -- in other words, the privately held businesses. Eventually though, many of those do arrive on Wall Street via initial public offerings, and as Motley Fool Money host Chris Hill previews 2019, he queries senior analysts Ron Gross and Jason Moser about the ones they'd most want to see announced this year. Moser hopes for (but doesn't expect) a chance to buy stock in SpaceX -- and a chance to read its financial disclosures, too. Gross is more down to Earth in his desires; fast-casual Mediterranean restaurant chain CAVA looks good to him. In this segment from the podcast, they each explain why those are their picks.
A full transcript follows the video.
This video was recorded on Jan. 4, 2019.
Chris Hill: As I talked about with Matt Argersinger and Aaron Bush, it's interesting to see not only the companies being named in the private market as potential IPOs this year but the possibility that the recent volatility we've seen might accelerate those IPOs in the first six months of 2019. Whether it's the S-1 that you're eager to look at or a company where you just think, "I want this thing to go public now so I can get a few shares," what's on your radar, Jason?
Jason Moser: One that probably a lot of people are thinking won't end up by IPO-ing. I hope it does. SpaceX, Elon Musk's rocket company. They're set to raise $500 million at a $30.5 billion valuation shortly. To me, space is one of these markets, one of these trends that's going to open up a lot of fascinating investment opportunities over the course of the next decade and beyond. I think SpaceX is going to be a part of that.
One thing that SpaceX is doing today is this project called Starlink. Essentially, the idea is looking to build out a constellation of satellites all over the globe in low orbit that will basically be able to beam high-speed internet connection to every corner of the globe. It seems like he's getting buy-in from all the regulators. We've seen what he's been able to do here in the rocket launches that have taken place thus far.
I think this is a fascinating company. It's going to offer a lot of opportunities. If we do get a chance to see it go public, I more than likely would want to own a few shares just to be a part of it. But I'd really want to read that S-1.
Hill: Do you think Tesla shareholders are eager for the prospect of Elon Musk at the helm of yet another public company?
Moser: Maybe we save that for another show. [laughs]
Hill: Ron, what about you?
Ron Gross: A favorite company in my household is fast-casual Mediterranean restaurant CAVA. They recently acquired publicly traded Zoës Kitchen. I'll give them a little time to digest that acquisition, decide what they want to do with all the Zoës locations. But then, let's take the whole darn thing public. Some great capital that they can use for growth to take the world by storm and expand the concept.
Hill: Have they given any more color on what they plan to do with those locations? I remember, we talked about that acquisition on this show. The only thing that surprised me was the fact that they seem like, "No, we're not necessarily going to turn these all into CAVAs." I think our general reaction was, why not?
Gross: I've seen more along the lines of making some menu changes, changes to the way the kitchen operates to be more efficient and have offerings that are more appealing to the consumer.
Chris Hill has no position in any of the stocks mentioned. Jason Moser has no position in any of the stocks mentioned. Ron Gross has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tesla. The Motley Fool has a disclosure policy.