One of the best performers on the market this year has been the SKY and Space Global Ltd (ASX: SAS) share price.
The communications infrastructure company's shares have gained over 114% so far in 2017.
Why have its shares rocketed higher?
This year Sky and Space Global has made significant progress with its 3 Diamonds nano-satellites.
The 3 Diamonds were successfully launched into space in June and are part of a much wider plan to launch a full Equatorial constellation of 200 nano-satellites.
Most recently, the company announced that its transmission operation had been completed successfully on multiple testing runs over a period of a few days via the company's proprietary smartphone application.
Management described this as its most critical technical and operational milestone which it believes demonstrates the capability of the constellation to deliver a full suite of communication services.
Ultimately, according to management's estimates, 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.
Should you invest?
With estimates of that nature it isn't hard to see why investors have been snapping up shares in a hurry this year.
But it is worth remembering that there is still a long road ahead for the company before it generates revenue of that magnitude.
For now, I intend to keep Sky and Space Global on my watchlist until it is generating revenue.
In the meantime, I would suggest investors consider tech shares such as Nextdc Ltd (ASX: NXT) or Appen Ltd (ASX: APX).
