Xterax II (XTER)
Market Price (11/6/2026): $9.77 | Market Cap: $266.9 MilSector: Financials | Industry: Multi-Sector Holdings
Xterax II (XTER)
Market Price (11/6/2026): $9.77Market Cap: $266.9 MilSector: FinancialsIndustry: Multi-Sector Holdings
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Low stock price volatilityVol 12M is 1.3% Megatrend and thematic driversMegatrends include Advanced Aviation & Space. Themes include Commercial Space Exploration. | Trading close to highsDist 52W High is -0.7%, Dist 3Y High is -0.7% Weak multi-year price returns2Y Excs Rtn is -35%, 3Y Excs Rtn is -84% | Key risksXTER key risks include [1] failing to complete an initial business combination and [2] intense competition for attractive acquisition targets within the space, Show more. |
| Low stock price volatilityVol 12M is 1.3% |
| Megatrend and thematic driversMegatrends include Advanced Aviation & Space. Themes include Commercial Space Exploration. |
| Trading close to highsDist 52W High is -0.7%, Dist 3Y High is -0.7% |
| Weak multi-year price returns2Y Excs Rtn is -35%, 3Y Excs Rtn is -84% |
| Key risksXTER key risks include [1] failing to complete an initial business combination and [2] intense competition for attractive acquisition targets within the space, Show more. |
Qualitative Assessment
AI Analysis | Feedback
Xterax II (XTER) stock has remained largely at the same level since it went public on 8/27/2026 because of the following key factors:
1. The stock price remained anchored to its Initial Public Offering (IPO) price due to its nature as a Special Purpose Acquisition Company (SPAC) and the security provided by its trust account. Xterax II (formerly Karman Line Acquisition Corp.) completed its IPO on August 19, 2026, at $10.00 per unit, raising gross proceeds of $200 million. These proceeds are held in a trust account, which acts as a fundamental floor for the stock's value, limiting downward movement and keeping the price largely stable near its IPO value since it began trading on August 27, 2026.
2. The absence of a definitive business combination announcement throughout late fiscal Q3 2026 and early fiscal Q4 2026 prevented significant price fluctuations. As a SPAC, Xterax II's primary objective is to acquire a private operating company. Without the announcement of a specific merger or acquisition target during this period, the market had no operational business or future growth prospects to evaluate, consequently causing the stock to trade around the cash held in trust rather than on potential earnings or strategic developments.
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Xterax II (XTER) stock has remained largely at the same level since it went public on 8/27/2026 because of the following key factors:
1. The stock price remained anchored to its Initial Public Offering (IPO) price due to its nature as a Special Purpose Acquisition Company (SPAC) and the security provided by its trust account. Xterax II (formerly Karman Line Acquisition Corp.) completed its IPO on August 19, 2026, at $10.00 per unit, raising gross proceeds of $200 million. These proceeds are held in a trust account, which acts as a fundamental floor for the stock's value, limiting downward movement and keeping the price largely stable near its IPO value since it began trading on August 27, 2026.
2. The absence of a definitive business combination announcement throughout late fiscal Q3 2026 and early fiscal Q4 2026 prevented significant price fluctuations. As a SPAC, Xterax II's primary objective is to acquire a private operating company. Without the announcement of a specific merger or acquisition target during this period, the market had no operational business or future growth prospects to evaluate, consequently causing the stock to trade around the cash held in trust rather than on potential earnings or strategic developments.
3. A notable lack of analyst coverage and specific price targets has contributed to the stock's stable, undifferentiated trading pattern. Throughout its public trading history since August 27, 2026, Xterax II has not garnered analyst ratings or consensus price targets. This absence of professional valuation and outlook from financial analysts has meant limited external impetus for price discovery, further reinforcing the stock's tendency to trade consistently near its IPO price without significant upward or downward momentum based on investment recommendations.
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Stock Movement Drivers
Fundamental Drivers
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Market Drivers
7/31/2026 to 11/5/2026| Return | Correlation | |
|---|---|---|
| XTER | ||
| Market (SPY) | -1.9% | 3.9% |
| Sector (XLF) | 1.0% | -14.4% |
Fundamental Drivers
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Market Drivers
4/30/2026 to 11/5/2026| Return | Correlation | |
|---|---|---|
| XTER | ||
| Market (SPY) | 2.3% | 3.9% |
| Sector (XLF) | 10.7% | -14.4% |
Fundamental Drivers
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Market Drivers
10/31/2025 to 11/5/2026| Return | Correlation | |
|---|---|---|
| XTER | ||
| Market (SPY) | 8.4% | 3.9% |
| Sector (XLF) | 11.1% | -14.4% |
Fundamental Drivers
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Market Drivers
10/31/2023 to 11/5/2026| Return | Correlation | |
|---|---|---|
| XTER | ||
| Market (SPY) | 81.3% | 3.9% |
| Sector (XLF) | 85.5% | -14.4% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| XTER Return | - | - | - | - | - | -1% | -1% |
| Peers Return | 38% | -17% | -7% | -6% | 165% | 43% | 276% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 12% | 105% |
Monthly Win Rates [3] | |||||||
| XTER Win Rate | - | - | - | - | - | 25% | |
| Peers Win Rate | 52% | 45% | 53% | 35% | 57% | 60% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 45% | |
Max Drawdowns [4] | |||||||
| XTER Max Drawdown | - | - | - | - | - | - | |
| Peers Max Drawdown | -52% | -48% | -53% | -55% | -51% | -45% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: VSAT, IRDM, GSAT, PL, BKSY.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 11/5/2026 (YTD)
How Low Can It Go
XTER has limited trading history. Below is the Financials sector ETF (XLF) in its place.
| Event | XLF | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -15.5% | -18.8% |
| % Gain to Breakeven | 18.4% | 23.1% |
| Time to Breakeven | 80 days | 79 days |
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -10.7% | -9.5% |
| % Gain to Breakeven | 12.0% | 10.5% |
| Time to Breakeven | 26 days | 24 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -16.1% | -6.7% |
| % Gain to Breakeven | 19.1% | 7.1% |
| Time to Breakeven | 270 days | 31 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -22.3% | -24.5% |
| % Gain to Breakeven | 28.6% | 32.4% |
| Time to Breakeven | 467 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -42.8% | -33.7% |
| % Gain to Breakeven | 74.8% | 50.9% |
| Time to Breakeven | 289 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -19.7% | -19.2% |
| % Gain to Breakeven | 24.5% | 23.8% |
| Time to Breakeven | 123 days | 105 days |
In The Past
State Street Financial Select Sector SPDR ETF's stock fell -15.5% during the 2025 US Tariff Shock. Such a loss loss requires a 18.4% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
XTER has limited trading history. Below is the Financials sector ETF (XLF) in its place.
| Event | XLF | S&P 500 |
|---|---|---|
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -22.3% | -24.5% |
| % Gain to Breakeven | 28.6% | 32.4% |
| Time to Breakeven | 467 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -42.8% | -33.7% |
| % Gain to Breakeven | 74.8% | 50.9% |
| Time to Breakeven | 289 days | 140 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -21.4% | -12.2% |
| % Gain to Breakeven | 27.3% | 13.9% |
| Time to Breakeven | 272 days | 62 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -26.1% | -17.9% |
| % Gain to Breakeven | 35.3% | 21.8% |
| Time to Breakeven | 162 days | 123 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -78.3% | -53.4% |
| % Gain to Breakeven | 359.8% | 114.4% |
| Time to Breakeven | 2329 days | 1085 days |
In The Past
State Street Financial Select Sector SPDR ETF's stock fell -15.5% during the 2025 US Tariff Shock. Such a loss loss requires a 18.4% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Xterax II (XTER)
Xterax II (trading as XTER), legally known as Karman Line Acquisition Corp., is a special purpose acquisition company (SPAC) or "blank check" company. Its core business is to raise capital through an initial public offering with the express purpose of acquiring an existing private operating business, thereby bringing that company to the public markets. As a SPAC, XTER currently has no material operations, products, or services of its own, nor has it identified a specific acquisition target.
The company's investment strategy is primarily focused on the aerospace and defense sectors, specifically targeting businesses that are developing or expanding services and capabilities for space-based infrastructure. This includes hardware manufacturers, software and analytics providers, and other space-related service companies. XTER aims to capitalize on its management team's decades of experience in areas such as wireless communications, remote sensing, earth observation, and data analytics to identify and acquire a business poised to benefit from the rapidly evolving space industry.
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- Business Combination Facilitation: The company's primary service is to identify and acquire a private operating business, facilitating its public listing through a merger or similar transaction.
AI Analysis | Feedback
Xterax II (XTER) is described as a blank check company, also known as a Special Purpose Acquisition Company (SPAC). It was formed for the purpose of effecting a business combination with one or more businesses. As such, it has no material operations of its own and does not currently sell products or services to customers.
Therefore, Xterax II does not have major customers in the traditional sense of an operating business that sells goods or services to other companies or individuals.
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Richard Davis, Chief Executive Officer, Director
Richard Davis is the founder and Managing Member of ArgoSat. He has also served on one other Special Purpose Acquisition Company (SPAC).
Vikas Mittal, Chief Financial Officer, Director
Vikas Mittal is the Managing Member and Chief Investment Officer of Meteora Capital. He demonstrates a pattern of managing companies backed by private equity firms through SPACs; Meteora Capital's previous SPAC, GSR II Meteora Acquisition, completed its merger with crypto ATM operator Bitcoin Depot in 2023. He has also been involved with three other SPACs.
Graeme B. Shaw, Chief Technology Officer, Director
Graeme B. Shaw has served on one other SPAC. He is part of a team with decades of experience in space and wireless industries, encompassing strategic, technical, mergers and acquisitions (M&A), operating, advisory, and investment expertise, with backgrounds in space infrastructure, satellite projects, remote sensing, communications, defense, and SPAC transactions.
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Share Issuance
- On August 19, 2026, Xterax II (formerly Karman Line Acquisition Corp.) completed its Initial Public Offering (IPO), issuing 20,000,000 units which generated gross proceeds of $200,000,000. Each unit included one Class A ordinary share and one-half of one redeemable warrant.
- Concurrently with the IPO, the company sold 650,000 private placement units, raising an additional $6,500,000.
- As of September 15, 2026, there were 27,316,667 ordinary shares outstanding.
Inbound Investments
- The company received $200,000,000 in gross proceeds from its Initial Public Offering in August 2026.
- An additional $6,500,000 was generated from the sale of private placement units at the time of the IPO.
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 31.22 |
| Mkt Cap | 4.4 |
| Rev LTM | 378 |
| Op Inc LTM | 13 |
| FCF LTM | 244 |
| FCF 3Y Avg | -15 |
| CFO LTM | 395 |
| CFO 3Y Avg | 374 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 4.1% |
| Rev Chg 3Y Avg | 15.3% |
| Rev Chg Q | 3.8% |
| QoQ Delta Rev Chg LTM | 1.0% |
| Op Inc Chg LTM | -3.5% |
| Op Inc Chg 3Y Avg | 11.2% |
| Op Mgn LTM | 2.4% |
| Op Mgn 3Y Avg | -5.7% |
| QoQ Delta Op Mgn LTM | 0.0% |
| CFO/Rev LTM | 34.4% |
| CFO/Rev 3Y Avg | 24.2% |
| FCF/Rev LTM | 12.5% |
| FCF/Rev 3Y Avg | -0.4% |
Price Behavior
| Market Price | $9.77 | |
| Market Cap ($ Bil) | 0.1 | |
| First Trading Date | 08/27/2026 | |
| Distance from 52W High | -0.7% | |
| 50 Days | 200 Days | |
| DMA Price | $9.80 | |
| DMA Trend | ||
| Distance from DMA | -0.3% | |
| 3M | 1YR | |
| Volatility | 1.3% | 1.3% |
| Downside Capture | ||
| Upside Capture | ||
| Correlation (S&P 500) |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 0.01 | 0.01 | -0.01 | -0.01 | 0.00 | 0.00 |
| Up Beta | 0.11 | -0.05 | -0.02 | 0.01 | -0.09 | 0.06 |
| Down Beta | -0.02 | -0.03 | -0.03 | 0.01 | 0.01 | 0.02 |
| Up Capture | 3% | 1% | 1% | 0% | 0% | 0% |
| Bmk +ve Days | 12 | 18 | 28 | 62 | 130 | 427 |
| Stock +ve Days | 2 | 7 | 8 | 8 | 8 | 8 |
| Down Capture | 2% | 4% | 4% | 2% | 1% | 1% |
| Bmk -ve Days | 10 | 25 | 36 | 64 | 121 | 325 |
| Stock -ve Days | 2 | 11 | 12 | 12 | 12 | 12 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with XTER | |
|---|---|---|---|---|
| XTER | -0.9% | 1.4% | -8.70 | - |
| Sector ETF (XLF) | 11.1% | 15.2% | 0.47 | -17.1% |
| Equity (SPY) | 9.5% | 13.6% | 0.41 | -2.8% |
| Gold (GLD) | 3.6% | 28.7% | 0.11 | 12.5% |
| Commodities (DBC) | 37.7% | 21.2% | 1.40 | 36.8% |
| Real Estate (VNQ) | 12.0% | 14.2% | 0.55 | 0.7% |
| Bitcoin (BTCUSD) | -20.8% | 43.3% | -0.42 | -16.1% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with XTER | |
|---|---|---|---|---|
| XTER | -0.2% | 1.4% | -8.70 | - |
| Sector ETF (XLF) | 9.1% | 18.4% | 0.36 | -17.1% |
| Equity (SPY) | 11.3% | 17.3% | 0.48 | -2.8% |
| Gold (GLD) | 17.5% | 19.1% | 0.74 | 12.5% |
| Commodities (DBC) | 8.0% | 19.6% | 0.29 | 36.8% |
| Real Estate (VNQ) | 1.2% | 18.9% | -0.05 | 0.7% |
| Bitcoin (BTCUSD) | 5.9% | 51.5% | 0.29 | -16.1% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with XTER | |
|---|---|---|---|---|
| XTER | -0.1% | 1.4% | -8.70 | - |
| Sector ETF (XLF) | 13.3% | 22.1% | 0.54 | -17.1% |
| Equity (SPY) | 14.9% | 18.0% | 0.70 | -2.8% |
| Gold (GLD) | 12.0% | 16.5% | 0.59 | 12.5% |
| Commodities (DBC) | 7.6% | 18.1% | 0.33 | 36.8% |
| Real Estate (VNQ) | 5.7% | 20.7% | 0.23 | 0.7% |
| Bitcoin (BTCUSD) | 61.3% | 66.2% | 1.01 | -16.1% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 10/01/2026 | 10-Q |
| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 10/01/2026 | 10-Q |
Industry Resources
| Financials Resources |
| Federal Reserve Economic Data |
| Federal Reserve |
| FDIC Data |
| American Banker |
| The Banker |
| Banking Technology |
| Multi-Sector Holdings Resources |
| McKinsey & Company Insights |
| Harvard Business Review |
| ValueWalk |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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