The SKY and Space Global Ltd (ASX: SAS) share price has been a huge mover in early trade.
At the time of writing the communications infrastructure company's shares are up a massive 16% to 21 cents.
Why have they rocketed higher?
This morning Sky and Space Global announced that it has successfully completed full capability tests for phone calls, instant message, voice recording, and image transfers through its 3 Diamonds commercial demonstration nano-satellites.
These three nano-satellites were launched into space in June and are part of a much wider plan to launch a full Equatorial constellation of 200 nano-satellites. This constellation will ultimately deliver cost-effective communications infrastructure and services to the telecommunications and international transport industries.
According to today's release, the successful transmission operation has been completed on multiple testing runs over the past few days, via the company's proprietary smartphone application.
Management believes this is the most critical technical and operational milestone which demonstrates the capability of the constellation to deliver a full suite of communication services.
Should you invest?
Previously the company has estimated that the quantum of bandwidth generated by the full constellation of 200 nano-satellites has the potential to generate between US$600 million and US$1 billion in annual revenues.
So with a market cap of around $120 million, the Sky and Space Global share price certainly does have a great deal of potential if all goes to plan.
Whilst it is a little too soon for me to part with my money, investors with a high risk tolerance could do well from a patient buy and hold investment. Though I would suggest that an investment is restricted to just a small part of a portfolio.
