Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche

Hyperloop

How you can invest in Hyperloop One’s Global Challenge

It is possible for almost anybody to invest in Hyperloop One’s Global Challenge. The partner in the challenge; AECOM (NYSE: ACM), is a publicly-traded company that anyone can buy stock in it.

AECOM is an engineering, design, architecture and construction-management firm that specializes in building large transportation projects and systems. AECOM is providing the construction, design and engineering expertise for Hyperloop One’s test track in North Las Vegas, Nevada, and the Global Challenge.

This means that AECOM and Hyperloop One are the first two companies with experience designing and building a life-sized working Hyperloop system. Unlike Elon Musk’s testing apparatus at SpaceX, Hyperloop One has built a full-sized system and pod with AECOM’s help. That system is now being tested in Nevada, and the two companies are laying the groundwork for the first commercial Hyperloop.

First Commercial Hyperloop Planned

The Global Challenge was a contest designed to find potential locations for Hyperloop lines. Hyperloop One and AECOM have chosen finalists which are likely candidates for an alpha test (real-world demonstration) of a working system.

The potential routes for the first commercial Hyperloop are:

  • Midwest Connect. Plans a Chicago to Columbus to Pittsburgh route. 488 miles (785 kilometers) in length.

  • Texas Triangle. Plans three lines connecting Laredo, San Antonio, Austin, Dallas, Fort Worth, Houston, and other cities in Texas. 640 miles (1040 kilometers) in length.

 

  • Rocky Mountain Hyperloop. Plans three lines connecting Cheyenne, Fort Collins, Denver, Colorado Springs, Pueblo, and Vail. 360 miles (580 kilometers) in length.

 

  • Miami/Orlando Hyperloop. Plans a line connecting Orlando and Miami and other cities in Florida. 257 miles (414 kilometers) in length.

  • AECOM India. Plans line connecting Bengaluru and Chennai. 208 miles (334 kilometers) in length.

 

  • Hyperloop India. Plans a line connecting Chennai and Mumbai (Bombay). 685 miles (1,102 kilometers) in length.

 

  • HypED. Plans a line connecting London and Edinburgh. 414 miles (666 kilometers) in length.

  • Northern Arc. Plans a route connecting Glasgow and Liverpool. 339 miles (545 kilometers) in length.

 

  • Mexloop. Wants to build a route between Mexico City and Guadalajara. 330 miles (532 kilometers) in length.

  • HyperCan. Plan for a route between Toronto, Ottawa, and Montreal. 400 miles (640 kilometers) in length.

 

These plans are pretty ambitious and if just one of them works out it would mean a lot of business for AECOM. Simply getting working Hyperloop up and running would undoubtedly lead to lots of new contracts for AECOM.

How Hyperloop Can Grow AECOM’s Business

Just the experience of working on one of these projects would enhance AECOM’s business. Getting Hyperloop operational would demonstrate AECOM’s engineering expertise and position it to work on all manner of next-generation transportation projects.

The projects outlined above would lead to lots of new business because there would quickly be demands for new Hyperloop lines to connect with those already built. There would undoubtedly be demands for lines to Detroit, Indianapolis, Saint Louis, Cleveland, Milwaukee, and Washington DC to hook to the Midwest Connect for example.

A line connecting the Texas Triangle with the Rocky Mountain Hyperloop is another logical extension. So would a line connecting the Texas Triangle with the MexLoop. In the United Kingdom, it would make a lot of sense to build several lines connecting the HypED with the Northern Arc.

You Can Invest in AECOM Right Now

Best of all you can buy AECOM stock right now. Hyperloop One is a unicorn; pre-IPO company, that only connected Silicon Valley insiders and the rich can buy into. If you have a brokerage account you can ACM.

More importantly, AECOM is generating revenue and making right now. It reported $17.67 billion in revenues and a net income of $258.11 million on June 30, 2017. The net income has grown dramatically over the past year; it was $89.96 million in June 2016.

There’s some other evidence that AECOM makes money including $808.26 million in cash from operations on June 30, 2016, $812.46 million in cash and short-term investments on June 30, 2016, and $13.84 billion in assets on the same day. Not the best company around, but from the worst.

AECOM even managed to demonstrate a few value characteristics – that included a low stock price of $34.99 on 19 September 2017. It was also undervalued, with a market capitalization of $5.483 billion and an enterprise value of $8.669 billion on the same day.

Investing in Hyperloop

If you want to invest in Hyperloop, AECOM is the best choice; because it is already working with the technology, and making money right now. That way you can invest to take advantage of Hyperloop without taking a serious risk.

AECOM is well-positioned to take advantage of other massive infrastructure projects; such as the $1 trillion President Donald J. Trump (R-New York) wants to spend in the U.S. Not to mention other Hyperloop plans such as Elon Musk’s New York to Washington tunnel, and Hardt Global Mobility’s proposal for a line between Amsterdam and Paris.

Therefore, AECOM can be an average person’s entry point to Hyperloop investment. There is a stock which can help you get a piece of this next-generation transport system.