I’m speechless…

Last Tuesday, a Reddit user named "Smellyfingernail" made a bold move.

He liquidated his Roth IRA and used the proceeds to buy 1,478 shares of SpaceX (SPCX) at $211 per share.

That's more than $300,000 invested in a single stock.

When asked about the move, he responded:

"There’s not much to it, if someone wanted to wait for a better valuation on SpaceX they are probably going to be waiting forever."

I've got a few thoughts.

1. Gross.

Of all the names you chose Smellyfingernail?

Gross.

Second, putting your entire retirement account into a single stock.

Also gross.

I don't care how much you love a company.

I don't care if it's SpaceX.

Concentrating your entire Roth IRA into one position is an enormous risk.

Especially when that position happens to be the most hyped IPO in history.

2. Price And Valuation Are Not The Same

Smellyfingernail argued that anyone waiting for a better valuation on SpaceX would be "waiting forever."

Wrong.

In fact, he's wrong on both price and valuation.

Remember, he purchased 1,478 shares at $211 apiece.

Today, SpaceX trades closer to $160.

So investors who waited for a better price have already been rewarded.

More importantly, SpaceX’s valuation will certainly get cheaper as revenue and earnings grow.

Wall Street is currently projecting SpaceX’s revenue to grow to $37 billion this year and $68 billion next year.

If the stock stays at its current $2.1 trillion market cap, that’s a price-to-sales multiple (P/S) of 57x and 31x, respectively.

That’s not cheap…

But it’s cheaper than SpaceX’s current 105x P/S valuation.

In other words, investors don't need the stock price to fall in order to get a better valuation.

Sometimes all they need is time.

As the business grows into its valuation, the stock becomes cheaper even if the share price goes nowhere.

That's why I disagree with the idea that investors need to rush into SpaceX today.

The company can remain phenomenal while the valuation becomes dramatically more attractive over the next year or two.

So… What Should You Do Instead?

I’m sticking with my original SpaceX IPO playbook.

Note that this prediction has nothing to do with me disliking the company.

Quite the opposite.

I think SpaceX is one of the most important companies in the world.

But we've seen this movie before.

IPO Hype → Insiders Sell → Retail Sells Out → Investors Lose Interest → Institutions Buy → Retail Buys Back In (Late)

The stock tickers change.

Human behavior doesn't.

Right now, we’re still firmly in the IPO Hype phase.

Remember, this was the most anticipated IPO in history.

That excitement doesn't disappear overnight.

And over the next few weeks, we'll see a massive wave of index funds buying SpaceX shares at virtually any price as the company becomes eligible for various benchmarks.

This is why I think the stock could remain volatile in the near term.

But eventually the hype will fade.

The headlines will slow down.

The forced buying will end.

And investors will begin focusing on the next shiny object.

This is when you should buy SpaceX.

Because the best long-term opportunities usually appear when nobody cares anymore.

Not when everyone is talking about them.

In my opinion, SpaceX will eventually become a phenomenal investment.

I just don't think we're there yet.

In fact, I'm willing to make a more aggressive prediction:

Before this cycle is over, I believe you’ll have the opportunity to buy SpaceX in the double-digits – below $100.

You just need to be patient.

Sorry, Smellyfingernail.