The SKY and Space Global Ltd (ASX: SAS) share price has certainly had a solid start to the week.
In morning trade the global communication infrastructure company's shares are up 7.5% to 21.5 cents.
What happened?
Earlier today the company announced that its 3 Diamonds nano-satellites have successfully completed inter-satellite links testing for data rates up to 2 Mega Symbols Per Second.
This is the first time that inter-satellite communication of nano-satellites has been performed with the satellites spread hundreds of kilometres apart.
Furthermore, management advised that the nano-satellites are in position and the customer satellite link is working and ready for ground-to-space testing to begin in approximately two weeks.
What this all means is that the company's plan to commence commercial demonstrations of the technology within the next few weeks is on track, and the 3 Diamonds will shortly be able to start generating revenues.
For those unfamiliar with its plans, management ultimately intends to create a full Equatorial constellation of 200 of its nano-satellites.
This has the potential to generate between US$600 million and US$1 billion in annual revenues according to its forecasts.
Should you invest?
I think Sky and Space Global is arguably one of the most exciting shares on the local share market.
Pleasingly, this game-changing technology has so far lived up to the high expectations of the market, somewhat justifying its year-to-date share price gain of 155%.
Should its commercial demonstrations prove successful, I wouldn't be surprised to see its share price climb even higher. This could make it a good option for investors with a high tolerance of risk.
For now, though, it is a little too high risk for me, so I intend to sit on the sidelines and watch on with a keen interest.
If you're like me and not ready for an investment just yet, traditional telecommunications company TPG Telecom Ltd (ASX: TPM) could arguably be a good alternative at the current share price.
