Speaker 1: 0:00

The proposed Trump administration new regulation on drones is going to put this sector on super speed at least according to Tabitha, who's a trainee analyst around here, aren't you Tabitha? And it's going to make it much, much easier to allow drones to fly outside of sight, and at the moment that's insanely complicated. So they're making that easier, which is very, very good for the industry and it's a huge opportunity for you and me. I'm going to give you all the key US drone stocks that could benefit bigly we're talking the pure play manufacturers and operators, and also the supply chain stocks think components, electronics and aerospace suppliers, because the shovel makers often make more than the gold hunters. And we have stocks tailored for beginner investors seeking low-hanging, safer fruit with stability or high upside opportunities, if you're one of those degenerates. So I give you their fundamental growth stock metrics to download for free at phoenixfriendsorg slash drone. You can see all of their data and it's going to be very, very useful so you can actually judge them. We're also going to look through this in a bit more detail in just a second and, for those of you who are actually serious about your stock portfolio, I will do you one better A live training this Saturday that will shake you up. Get your free seat now at phoenixfriendsorg slash training. It's the first link in the description and no, there'll be no replay If you don't show up live. You're not ready for it.

Speaker 1: 1:36

So let's start with the US drone stocks the lowest hanging fruit for beginners. We have Amazon. Amazon leads in drone delivery via Prime Air. This flying out of sight rule enables scaled package deliveries targeting 500 million annually. I'm not kidding. Amazon, if you look at our list here, is also one of the companies not only with a high gross profit margin, which just means it's hard for someone to compete with them, so they can charge what they charge. They actually seem to be making money. They've got some free cash flow and well, they're not growing that quickly. They're growing at like 10 or 11%, which is why it's a safe sort of low-hanging fruit. I mean, obviously there's risk in everything. We'll look at some of the other metrics in just a second and I'm going to run through the fundamentals here and then, towards the end, we're going to do a whole chart session on good entry spots for each one of these. So if you want to watch that as well, make sure you stick around.

Speaker 1: 2:36

Now Google is the second low-hanging fruit, why their wing unit focuses on commercial drone delivery, which is set for major US expansion under this new regulation. And do no evil, google sits on our list with the highest gross margin, which generally means it's one of the safer businesses. They have a very nice free cash flow margin, which means they're actually producing cash from their business. They don't know what to do with it, which is pretty extraordinary. And they're growing at 13%, so faster than say, amazon.

Speaker 1: 3:07

The third low-hanging fruit and we're going to get to the sexy stuff in just a second is Walmart. Yeah, they're investing in drone delivery partnerships and again, the flying out of sight thing is going to ease the acceleration of their logistics growth. And never count out the Walmarts, because, well, while margins are not brilliant I mean it's a retailer they do have the same cash flow as Amazon, which is kind of interesting without a cloud business attached to it. And well, really, weirdly, it's more expensive than Amazon on a P-E ratio basis, which is a bit odd really. It's growing much more slowly Amazon on a P-E ratio basis, which is a bit odd really. It's growing much more slowly. Their net income, their profit margin, is much lower, so it doesn't really make a lot of sense, does it? Well, I'll leave that up to you. This isn't financial advice. You've got to come up with your own thinking and decision-making here as well.

Speaker 1: 4:01

But let's jump into the stuff that's a bit more interesting, which is the actual real pure plays in this, and the first stock we have is AVAV AeroVironment Inc. They are the leading US maker of military and commercial drones. They gain from defense contracts and also just domestic production. Push and again easier for them to do stuff and test stuff. They don't have to get one of these pesky permissions every single time.

Speaker 1: 4:32

Now, avav is an interesting one because they have a really nice gross profit margin, almost as good as Amazon's. They're not making any money like no money at all. They seem to have no intention of doing so, and there is one thing that I'm slightly worried about they're cutting back on R&D spend. So when you're looking at a growth stock, you can't really say that much about their margins and so on, because it's kind of early stage. You want them to just grow revenue. Well, revenue went down 3% last year, which is not brilliant, but it could accelerate significantly. But they're also spending less on R&D, so it sounds to me a little bit like they might have a cash flow issue. Their interest rate coverage is negative because they're not making any money. It's a little hard to judge. So, yeah, it gets a bit more challenging to judge these high potential plays, right.

Speaker 1: 5:21

Well, I've got another one for you, though, which is Kratos. Kratos Defense and Security ticker symbol K-T-O-S. They specialize in affordable unmanned systems, strong growth from military demand and again this regulatory support coming in, and for some reason, kratos fell off my list. I will add the details for you so you can make sure you download this, felixrenzoorg. I'll add KratosOS in here, I promise, so you get the full data.

Speaker 1: 5:50

Red Cat Holdings is also one talked about a lot. Rcat is the ticker military-focused drones with NDAA compliance, high upside from acquisitions, and also the export improvement reforms. And Red Cat? Well, they're not making any money, right? None whatsoever. Negative numbers on absolutely everything, but they're going to make money. How do you know that? Because you look at the current PE, it's negative, which means there's no profits. You look at the profits in two years, as predicted, and they're actually going to have a positive number there. They will break profitability in the next two years, according to analysts, and they are growing their R&D spend their research spend by almost 60%, which I like.

Speaker 1: 6:34

One of the things, as I said, for growth stocks. If they're not growing their R&D expenditure and it's a tech business well what the heck are they spending their money on? Right, they need to be spending loads on R&D. That's the one place you want to be throwing money at. We also have Ondas Holdings, which is an autonomous, flying sort of out of sight system for industry and government. It's a subscription model which drives a nice revenue and well, it's going to be very, very good for them because basically, their business is now much, much easier to sell, which should take their revenue back into growth territory, because it was falling last year and might make them look a little bit less insanely overvalued.

Speaker 1: 7:16

We then have AgEagle Aerial System, ticker symbol UAVS, and they basically do agricultural and surveillance drones with blue UAS certification. Again, they benefit from farming innovations, supply chain focus and again, farmers love drones because not only can you survey your land and say look, honey, how much land we own, you can actually spot problems, you can apply lovely pesticides to make the world a better place and make buyer a little bit more money, and all that kind of good stuff. Obviously, drones just make sense if you have very, very large agricultural areas, like good old Bill. Right, you know Bill Clinton. No, not Bill Clinton, the other Bill, the other island friend, he's the largest agricultural landholder in the US. That should make you sleep well at night, shouldn't it? He's only got the? It greatest interest of humanity at, ha-ha-ha-ha-ha. I always got that out, anyway.

Speaker 1: 8:12

Uavs great margins. Not so good at making money with it, though. Why is that? What are they spending the money on? Well, certainly not research and development. So, again, these are all early stage companies, and my hope here is that you realize that these pure plays everyone's going to be talking about. They have significant risk, right. They have shrinking sales, they have falling revenue, they have bonkers valuations that make very little sense right now unless they deliver. So there is a management execution risk with all of these.

Speaker 1: 9:05

Well, boeing, thinking of safety, you think of Boeing first, don't you? We lose wheels, we lose airplanes, we lose doors, we lose I was going to say employees, but they don't lose those. They just decide to suddenly jump off a chair into a loop and then hang themselves by accident and leave a note. It's actually not funny, is it? It's not funny. And, of course, there are no accusations whatsoever. The people at Boeing are the kindest, sweetest, gentlest people in the world and we love them all very dearly. Hopefully that'll save my neck.

Speaker 1: 9:21

Now they're, of course, the aerospace giant. They have unmanned systems like the MQ-25, which looks very cool, and again they benefit from the domestic supply chain strengthen and the very cool. And again they benefit from the domestic supply chain strength and the defense priorities and again, much easier for them to put stuff out if they can get these permits easily. Now, every time they sell something, they lose money. Whoops, they burn through cash every time they sell something. They burn through cash every time they sell something. Well, they're going to make some money in the next two years. We hope. Revenue is growing at 2.4% growth stock and they're spending just T money on R&D. Well, it's a very big company, so maybe they can get away with that. So, yeah, it's not my favorite company in the world. I actually did own it for a little while, very recently, because it was looking very bullish and made some money out of it, and that's really all we care about.

Speaker 1: 10:15

This one is a bit more exciting L3Harris Technologies, ticker symbol LHX. They provide sensors and electronics for drones and there is growth from security sectors, industrial applications. Actually, I'm thinking of getting a drone, one of those things in a box, put it in your roof, flies around the parameter and when someone crawls over the fence, it goes over there and says oi, what do you think you're doing? Climbing over my fence, right, and then saying that there are wild animals and dogs at bay, which is true. It doesn't need to know that it's a golden retriever, but that sort of thing and that's going to be something that most people are going to want to have, who have more than a shoebox that they live in.

Speaker 1: 11:01

So what do we make of L3 Harris's numbers? Well, look, the gross profit margin isn't the greatest, but at least they're converting that into profits and into cash flow, which means management actually knows a thing or two about running a business, which can't be said for all of these companies. The only thing I don't like is that Wall Street at the moment has this PE ratio of 30. And it's saying in two years it's going to be 24, which implies there's going to be very, very little growth in profits, which I don't like. But the Muppets on Wall Street? I'd be wrong. They might be high, they might have just not read the documents, so it's entirely possible that they're wrong on this. But yeah, I like them because they're making money and I like companies that make money, and while the growth isn't great, this could be the growth kicker for them to do a lot more.

Speaker 1: 11:52

We also have unusual machines. Umac is the ticker. These are ndaa compliant motors and engines, which supports the us drone supply chain because they want to buy less foreign stuff. So, umac, if you want an unusual machine, not a great gross profit margin, making no money whatsoever, can't afford to pay for interest. We expect their profits to fall, but revenue is growing at a thousand percent Now. It could, of course, be that they sold one drone last year and this year they're selling 10. It could also be that they had $1 revenue and now it's a little more than that. They're also spending a lot more money on R&D. Now you need to look at the exact numbers they're actually spending to put that into perspective. But it is also kind of the most expensive stock on our list here, and that's often for a reason right. So I think there's a whole world here that we might want to dig deeper Now.

Speaker 1: 12:58

I actually made a video on this the other day. The next one, which is Heiko how do you Americans pronounce it? Obviously, being German, I say Heiko Corp. H-e-i is the ticker Aerospace parts supplier. They support, again, dry manufacturing with components for more production and so on. Expected there, and these guys, decent margin, pretty good profit margin, very good pre-cash flow margin actually the best on this list here and profits expected to grow. Revenue growth 17%, which is pretty decent and not insanely expensive and very profitable. So there is one that's a little bit more sane. So shall we have a quick look through these? I actually pulled up Palantir as well because you could argue that also benefits from this, because Palantir will power a lot of the kind of smarter drones out there with software. But let's start very quickly at we'll do this in a sort of fire. You know quickly.

Speaker 1: 13:58

If you want to get all the news and all this stuff on all these stocks, you can get that in Trade Vision. It's a link down below Google. Do we like Google here? Look, google has just done something rather textbook and if you really want to understand this stuff, come and join me Saturday and I'll walk you through a little bit more of this in detail. Links down below. But we have that sort of pattern up here, right, and we've basically entered that same zone here and we did the same thing again, because the market moves in patterns surprise, surprise. So we're in a pretty good place.

Speaker 1: 14:25

Ideally, we might want to knock this zone out of the park, which would mean we'd want to be at sort of 200. So 200 is going to be a little bit your resistance. You break out above 200. On Google Could be kind of interesting. Amazon is actually doing reasonably well, despite Bezos selling everything to afford his new wife. That's a joke. Rumors are he's buying more media companies, because it's always good when our billionaires own all the media companies. It makes the world better. Maybe, maybe not Amazon. Nice big gap down there, but it's recovering here on a great bigly green candle, which is quite positive actually. So that's a good one. You just want to close above that yellow line here, which is the 50-day moving average, and I'm doing this quite quickly because if you want to learn, if you're serious about this, come and join me Saturday. So this looks starting to look interesting again, especially if volume picks up.

Speaker 1: 15:23

And then we're going to run through AGEagle Also ticker symbol for AGEagle UAVS, uavs. There we go, go, and I quite like these sort of setups because it means they've destroyed more money than um anybody with a conscience ever has. Stocks down by 99 percent. Um, buy and hold. They say, yeah, uh, good luck with that. It works on the index by the S&P or something. It doesn't work on individual stocks, but there is a sign of life. After several years in a coma, the patients appear to be waking up, and we quite like setups like that. So this is obviously a higher risk one.

Speaker 1: 16:14

But if it does blow up or we need a little bit more volume, then it's entirely possible that we could have a. You know how much is it to go back to all-time highs? Let's just do that for fun. To go back to all-time highs, you would make about 15,000 or 16,000%. I'm not promising you those returns, so don't chuck all your money at this. Don't be a nitwit. We haven't insulted the audience yet today.

Speaker 1: 16:43

What about AVAV? Avav, that's a little bit further ahead because it's actually gone up relatively respectably. Nice gap up here. That was a good entry point and then, as all gap ups usually, we usually come back down, we consolidate, and now, right now, we're in consolidation. So for me it's a question of breaking out of that zone. You pop your head above that, things are going to look potentially very, very good.

Speaker 1: 17:16

So I actually quite like this one. Here we have heiko, which actually sounds like a german sweets manufacturer, which is sort of the same thing, isn't it? Bomb children in gaza, or sweets? I'm not saying we have anything to do with bombing children in gaza. I'm not saying that anybody is bombing children gaza, and there might be very good reasons to bomb things in gaza, or they may not be. I have no strong opinion on one way or the other. Now I'm going to get hatred from both sides of the conflict.

Speaker 1: 17:42

Yay, so okay, not brilliant that we dropped below this yellow line here, which is the 50-day moving average line 50. 50-day moving average. But it could also just be one of those bounce offs and you see, like here we did that sort of bounce off. So these bounce offs are worth watching because if they hold and we bounce back above that line, it actually strengthens the the rally. So I'm still liking it from where it's sitting if it bounces back up, if it doesn't run forest run, uh, umac, unusual machines, which is a. At least the founder has a sense of humor. You got to give him that. That is um, yeah, it's, it's actually looking all right. I mean, it's bounced off here, it's support a few times.

Speaker 1: 18:33

The only thing is the highs we had of late are trending down, so you want to break out of that zone. You kind of want to go to at least 1250 or something for this to start looking interesting. In my opinion. Lhx and then we've got just four more is that's been on our radar for ages. Like we had an entry point down here at 15th of May. I made a video on that, I think in early May, and that was a good call, by the way, and that wasn't sort of randomness, that was just rules, good old fashioned rules, because it's how we make money. But we've broken out and still looks good.

Speaker 1: 19:10

Things that go break out like that and go up in a straight line are usually pretty good. Now you could wait for a little pullback like we've had a few little pullbacks and buy it on the next pullback, and maybe that might be the smart thing to do. Again, I'm telling you what to do. I said could. I didn't say you should, which I never do. If you pay attention, I never give you advice or recommendations, I just give you stuff to think about. Walmart. We like it why? Because we've had this nice little recovery here. We've broken above all these recent highs. Volume is speeding up Now. Earnings are going to come up at some point when in 21st of August. So pay attention to that. That's a little bit of a risk item always, but it is actually looking pretty decent that it's broken out of its zone. So something worth looking at.

Speaker 1: 20:02

Ondas Ha ha ha. Too late, felix, too late. No, actually, bang on time and I'll tell you why. Because, yes, you could have bought it here, which would have been a reasonable thing to do, but you still had the concern, the worry, that we would hit the high from January or whenever that was, and we would hit that and then we would then come back down. So, given where you are right now, you might as well wait an extra day and see if we're actually going to break above that or if it is going to go back down. In which case, wait for the next dip and then maybe think about it down there. So it is not too late, my friend, it is never too late, it is always just right, boeing.

Speaker 1: 20:46

Boeing is just down here. What I was referring to earlier. You know, one bounce off, second bounce off the 50-day moving average line there. So, despite being probably one of the worst run companies in the world, allegedly, we do love everybody, though, who works and runs Boeing, especially senior management. We don't want to end up, you know, committing suicide now, do we? You hear Ghislaine Maxwell has been moved to a low security institution. I hope she doesn't trip and fall. I really hope she doesn't trip and fall, because those things can apparently happen in lower security institutions.

Speaker 1: 21:25

So, yes, not the cleanest of entries, but at least if it takes out the recent highs here, which would be scientifically at about 235, that could be a little bit of a one. Or if you just strongly believe in the magic that is Boeing, then dip away Again, not telling you what to do. And then we have Red Cat RCAT, which is one of the more coaster, and well, if you like a lot of risk, if you like sleepless nights, here is one for you that could potentially make you a lot of money or just cause you, you know, ulcers. It is sort of just below the recent highs, certainly below the mid-month highs. So for me it's not a brilliant setup. I would wait to break out a bit above that and maybe even above that. Wait for some nice big green candles down here and then it could be worth a look at. But you might be one of those diehard buy the dip folks, in which case hats off to you.

Speaker 1: 22:35

Your stomach lining is stronger than mine. So I hope this was useful for you. Make sure you download the document, you get all the data and I will add KTOS to it. And if you are actually serious about making money with all the jokes and so on set aside, then come and join me on Saturday. Felixfriendsorg slash training. And if you're asking whether there'll be a replay, no, there won't be. And if it's for you one in the morning, well, someone said that yesterday. It's my one in the morning. I can't attend. I'm like, are you six, or your mother didn't give you permission to stay up at one in the morning on a Saturday night. It's just a question of whether you're ready for it.