OTC Adventures: Rocket Internet AG – Jump on this Rocket and get some Kalshi & SpaceX exposure for free ?
HEALTH WARNING & DISCLAIMER
This is not Investment Advice. The stock discussed in this post is a “Pink Sheet” OTC stock with limited liquidity and almost no reporting. The author may own, buy or sell shares in this company without pre-warning. DO YOUR OWN RESEARCH !!
As a change to previous write-ups, I will start with the sound track for this write-up. And of course it is “Rocket Man” from Elton John. It fits in more than one way to this Special situation and you maybe want to listen to it while reading the write-up.
Elton John – Rocket Man (Official Music Video)
As again, this write-up became a little bit longer, I’ll just show the “elevator pitch” here but will embed the PDF document.
0. Elevator Pitch
Rocket Internet AG, a former German Venture Capital super star company run by the Samwer brothers has gone “dark” and delisted in 2020. Since then, the stock price languished until more recently, when a German activist sent an open letter to Management and the auditors criticizing the “low balling” of accounting numbers. Diving a little bit deeper, some true gems are hidden in Rocket Internet’s portfolio, especially a participation in SpaceX and prediction market superstar Decacorn Kalshi. The current share price reflects most likely less than 50% the current NAV. In my opinion, the upcoming SpaceX IPO and further positive development of Kalshi could maybe act as a “catalyst” and lead to a higher share price. In addition there is a (low) chance that Rocket Internet might distribute another special dividend as they did in 2024.
value and opportunity 
Good find!Thinking about this a bit, is investors like you who usually can spot frauds investing in something like SpaceX which wants to put datacenters into space (which is obviously a money loosing venture) the top?
Kalshi is more of a gambling bet as well. So give up and bet on fraud? I’ve certainly thought about this as well, but am wondering if it is not too late to join the party.
Maybe one clarification: I would not invest in SpaceX directly. Never ever. Rocket Internet is a short term special situation which for many reasons looks undervalued. The SpaceX stake is basically the potential catalyst.
The main owner had 2 years to implement a DA or squeeze out the minorities at a bargain price. Does not add up that he didn’t do it and imo makes it less likely he would do it now. Hence, minorities are at his mercy. Bear in mind once Spacex etc are listed, you can buy the shares directly and people move on from derivates like Rocket.
How could he squeeze out minorities if he only has 83% ?
He had 2 years where he could have bought 7% sub-20.
In theory. In practice, a significant part of the free float is not for sale at that level.
i would never buy a Pink Shit.
That’s 100% ok. No one forces you to buy or even to read this blog
Thanks. Interesting Report.
How did you derive the number of shares? Per Bloomberg and the latest annual report, the number of shares was 136m (vs. 81m in your paper)?
The latest annual report from 2024 states that there are ~81,5 mn shares outstanding.
Nice analysis. I think the Scottish mortgage investment trust owns a bit of spaceX. Just fyi for anyone interested.
A friendly reader contacted me that I have not accounted for the 18,1% stake of Traveloka, a leading Asian Travel Portal. Traveloka’s last valuation has been 3 bn USD and it seems to be profitable. This would add up to 5 EUR per share to NAV if one would use the 3 bn USD.
Fascinating report, well written and a great find.
Your report also partially explains why the American stock market dominates vs the German one (for example) – who will invest in a market where minority shareholders are treated so poorly?