Cuba’s Drone Threat And The Hook

SPEAKER_00 0:00

Cuba has acquired more than 300 military drones and has discussed using them against American targets. It is confirmed that Cuba has stockpiled hundreds of attack drones that can reach US soil. And while that sounds terrifying, there is an opportunity in this very strangely. Most defense stocks are down 30 to 40% this year. A handful of companies could be sitting on the investment opportunity of the decade. And the best part, well, most investors have no idea this is happening yet. So I'm going to show you exactly which stocks could explode when Washington finally wakes up and opens the checkbook, which I believe they will. But more importantly, I'll show you which ones to avoid because three-quarters of these stocks are traps that'll cost you money. And honestly, it's the same playbook that led me to buy oil service companies six months before the Iran War. And here's one of those, for example, you know, Weatherfoot, it's up 70 odd percent right now. And it's not because I have a crystal ball. I didn't know the Iran War was coming, but I know how to follow the money. And somebody always knows something. And I'm starting to see the same pattern in these particular stocks. My name is Felix Preen, I'm an ex-banker, and today we're gonna dive deep into the counter-drone defense sector. A space that very few people understand, but one that could deliver massive returns if you know what you're doing. It's a little bright and sunny here in the south of France, but I thought this is one that you guys need to be aware of. And I've been looking at the numbers for weeks here, so I've put together not just this video, but because it can sometimes be a little overwhelming how much information I dump on you, there is a free research report that you can download at felixfriends.org slash Cuba, and it'll have in it all the tickets, all the stocks, all the ETS we're talking about, even more detail than I can put into this video, because otherwise this video would go on for far too long. So download it at FelixFriends.org slash Cuba. Links down below in the description, and maybe you can read it while you're watching this video because it'll actually help you. It'll make this sync in a lot more and it'll make you take better decisions. I'm not a registered investment advisor, I don't give financial advice, I'm just sharing my research and the way I read the market, the way I learned it. So here's the situation, and this is literally verified by multiple intelligence sources. Cuba has accumulated approximately 300 Russian and Iranian attack drones. They're not little toy drones, they're military grade systems with an operational range to threaten US infrastructure. We're talking power grids, airports, military bases, the oil refineries in the south. They're all within striking distance from Cuba. And I can tell you, the US isn't gonna just sit there and go, oh, that's fine. The CIA director in the last few days visited Cuba. I can put some pictures of that on the screen as well, so you believe it because it's true. He's assessing the situation. The US military conducted counter-drone defense exercises off the coast of Key West. This isn't conspiracy stuff. This has been corroborated by Reuters, by Axios, by US intelligence agency. And the reason this matters for you and your portfolio is that the US has massive gaps in its air defense systems at home. They are not set up to defend against drone threats. Because think about it, right? The US has spent trillions defending against jets, missiles, bombers. But drones are a completely different and new animal. They're small, they're cheap, they fly low, and traditional radar systems struggle to detect them. So suddenly Washington is waking up to the fact that the US is vulnerable on its own soil. And when the government realizes there's a critical security gap, what do they do? They write checks. Big, beautiful checks, to the companies that can solve the problem. And there's a pattern to how they do that. If you go back to 2001, homeland security spending exploded. Companies that specialized in security screening, surveillance, defense contractors, their stock prices multiplied multiple times. When cyber attacks became a major threat, cybersecurity companies went from obscure, weird little tech businesses to billion-dollar giants. When Russia invaded Ukraine, defense stocks rallied as scum countries scrambled to rebuild military stockpiles. So the pattern is always the same. Threat emerges, government panics, money flows to the companies that can address the problem. Now, what makes this a different in, I believe, Shechsia opportunity is that most defense stocks are currently beaten down. 11 out of 12 stocks we analyzed are negative for the year, with many down 30 or 40%. And this means you're buying potentially quality defense companies, as we always got to say that, you know, not every defense company is quality, but you're buying at sale prices, right? Before we have a potential big catalyst that people aren't talking about. So it's like finding a fire extinguisher company on clearance the day before everybody realizes buildings are, I don't know, on fire. Of course, I'm not hoping that anything bad's gonna happen in the US, but the US is gonna want to protect itself against bad stuff happening. And the smart money, the Wall Street money, does what? They position now, before the headlines scream about it, before we get emergency appropriations and defense contracts. But you see, most investors get defense investing wrong. Nobody wants to hear whatever to tell you, but I think you need to hear it. Most retail investors lose money in defense. Fine. Because they chase the headlines. They buy overpriced stocks, they buy the military stocks as the war starts, which is quite frankly too late. We bought oil stocks in September, October 2025. The war started in February, right? Right about here. What happened after the war started? Well, the stocks actually pulled back 20%. So buying on the headlines is gonna make you poor. Buying on money flows, I think could potentially make you a lot wealthier. So if you see headlines and articles about military spending and you throw money at defense stocks, you're probably too late to party. So let me walk you through the mistakes people make. I'm gonna give you the actual tickets that I'm looking at and where I might want to buy them and what I want to buy. I literally give you the whole, the whole freaking list. But the mistakes are actually more important than my stock selection. Because you want to be able to do this with confidence. You want to be able to do this next time, and it's something you can apply to every opportunity there is, right? So first mistake is people buy the obvious names at the wrong time. Everybody knows Lockheed Martin and, you know, Raytheon, and they're sort of how maybe Raytheon isn't the household name, but Lockheed Martin probably is. And when a specific catalyst like counter drone defense emerges, the big, huge defense contractors, guess what? They don't move as much as you think. Why? Because counter drone revenue might be like 2% of their entire business. So even if it doubles, it's a rounding error. Meanwhile, smaller, specialized companies that focus specifically on drone defense could see explosive growth because that's the entire business model. The second mistake I see is you fall for leverage. Leverage is a trap. A lot of investors see leveraged index funds that promise, you know, to triple your returns, and they think they've found some shortcut to wealth. But these leveraged products have something called path decay. That slowly destroys your investment over time, even if the sector goes up. And I'll show you the actual data on this later in the video. Um, but for spoiler, there's a an ETF called DFEN. It's three times leverage defense ETF, it's down this year while everybody else is up. So leverage is definitely not your friend. And then the third mistake is completely ignoring valuations and technicals. So just because a stock is in the right sector doesn't mean it is a good buy at any price. Some of these counter drone companies are trading at PE ratios over 100. That means you're paying$100 for every dollar of profit. So if growth slows down even slightly, these valuations collapse and your portfolio collapses with it. On the other side, there are some quality companies here that are extremely oversold, as a cheap, if that was ever a good word. And they're trading at technical levels that historically have signaled a bounce is probably coming. So if you understand the framework, you can avoid these mistakes and you can position yourself in the rightish companies at the rightish time. We don't try to be perfect. That's a false errand. But you won't be the person chasing headlines after the rally is over, and you're not going to be the person who bought high-quality company. Instead, you're going to be the person who buys high-quality companies when they are beaten down. And you might be watching this video right now because you want the opportunity, but you're not quite sure how to execute it, right? You're worried you're going to get burned yet again, and you probably made investing mistakes in the past, bought stocks that looked like great because everyone's talking about it and then they tacked. And then you sell too early and you watch them rebound, and it's all very, very, very frustrating, right? And the worst part is you know that there are people on Wall Street who have access to research and tools and strategies and skills, most importantly, that you don't have yet. So it feels like it feels rigged, doesn't it? If it feels rigged to you, you put rigged in the comments down below. I'd love to see it because I think that's where most people are right now. And that's exactly why I'm going to do something for you I've never done before. I've put together, she's still working on it here from the South of France, which is a lovely, lovely office to have. Um, I'm putting together a free workshop for you that walks you through the entire process, step by step, that I learned on Wall Street. Well, from Wall Street. I worked in an investment bank. Um, and I call it the 10x returns workshop. So we've never done this before. We'll probably never do this again because it's turning out to be a lot more work than I thought it would be. And it's designed specifically for beginner investors who want to understand how to take advantage of these big opportunities without getting ripped off. So in the workshop, I'm going to show you the strategies that I use to identify these high potential opportunities, how we can take advantage of them in a responsible way without betting the farm on it, but still getting potentially high returns. So you're going to learn all of that whole process. It's free, by the way. It is absolutely free. It's part of our mission here to make a million people financially free. And you can grab yourself a free seat to that. There's a ticker down below. It's called 10xreturns.org. I mentioned this yesterday on a video. There are already 3,000 people signed up to this. This is probably going to be a monster event that we'll run maybe never again. So 10xreturns.org is where you sign up for that. It's a link down below. Sign up, be on time, and don't ask for a replay because there won't be one. It's going to be interactive. You're going to have to bring a pen and paper and really like be with me for probably an hour and a half, maybe two hours to really get the most out of this. But let's get into the the meat of this, so it's this vegetarian. Um, I get schnauze up terribly here in France. Anyway, uh, we sure we shall not take the piss out of the French. Um, but actually that's a lie. We're probably gonna keep doing that because it's just so easy. So I've analyzed 12 stocks for you, four index funds in this space. And what became crystal clear is that not all counter-drone investments are created equal, right? In fact, if you ask the French, for example, their nation is not equal to yours, they are the greatest country and nation in the world. Just ask them, they'll tell you. Um, some try, I mean, look around. It is, it is, you can see where the confidence comes from. It's a beautiful place. So I've organized these into three tiers based on risk, reward, and likelihood of success. So tier one is most conservative. Um, if drawing defense stocks can be conservative, I mean, this is obviously uh, you know, a high-risk investment. Um, tier one is companies that I would call quality at reasonable prices, some really oversold big ones. And they have strong balance sheets, they have proven track records, you know, they are setups that are looking pretty decent. So it's sort of your foundation. So even if the Cubo thing doesn't fully materialize, these companies should hold up because they're fundamentally quite sound. And what am I talking about here? Well, for example, an ETF. It's called XAR. And it's a defense ETF. And if you go into our Winston app and type in XAR, you'll see it down here. And we've given it a pretty good rating, four out of five Winston's. Uh, Winston's my golden retriever, in case you're wondering. Uh fees are pretty modest. Um, it's up 50% over a year, it's holding 41 stocks. So it's not like they own everything. Uh, if you click on that, you can see how it's doing. And I'm liking this particular pattern here, and I'm going to walk you through that in a second. It's very US focused, and they own things like Rocket Lab, Hexel, Curtis Wright, Halmet, BWX, a bit of Boeing, a bit of Carpenter, you know, a bunch of stuff. Um, it's essentially a US pure bet, which is what we're looking for here, right? So we're not looking for, you know, Japanese drone stocks because the US isn't going to deploy them at home. We're looking for US. Tier 2 are a little bit more aggressive opportunities. Um, if you're happy with higher risk, um, these guys have direct exposure to the counter-drone theme. They have good momentum. Uh, they're gonna move up and down a lot more. I'm gonna walk you through which ones they are in a second. It's companies like Kratos and Elbit, for example, that have a lot of revenue from the whole drone and drone defense space. And all of these are in the in the document, but we're gonna we're gonna run through them here one by one. And then the third tier is the really aggressive stuff, really speculative, right? So it's it's the danger zone if you if you wish. Um, but with a right level of small allocation, it can still be a responsible thing to do. So they are tiny companies with tiny market capitalization. The businesses are unproven and they're gonna be absolutely like lottery tickets, right? Um, they could triple 5x if everything goes perfectly right, or they could go to zero if they really fail. So I put on the screen here for you how you might want to allocate. Again, I'm not telling you what to do. This is definitely not for all of your portfolio. This is probably, if you are interested in this and you did your own research, you come to your own conclusion, somewhere like one to five percent of a portfolio max. That's kind of what this opportunity is. Because say this three X's or five X's, then the 5% becomes 15% or 25%. That's a huge impact, right? Never ever go all in. That is not what Wall Street does. That's buying lottery tickets with all of your money. You can buy a lottery ticket, fun thing to do, but you don't take your entire portfolio and go to the lottery shop and say, put it all on these numbers. That would be madness. Don't do that. People do that again and again in the markets, and I want to make sure you don't do that with this opportunity. Okay, so let's run through these one by one. Um, XAR is where I would start. Uh, it's the easiest opportunity because it's an ETF. It's done basically nothing since the beginning of the year, right? Um, it has this pattern here. We'll talk a little bit about that on the weekend. I call it a heartbeat pattern because it's sort of heartbeats, right? And it isn't a perfect setup as yet, as I'm saying. We're early on this, a little early on this. And it's good to be set up early, but you also don't want to be too early. And why is it early? Because you see that yellow line there? That yellow line there, which is the 50-day moving average line, it's sort of the line of lines. It's sloping down right now. It isn't brilliant. But you will also notice that the longer-term support is actually going up. So we had a low here, the next low was higher, right? This low is higher, this low is even higher. At present, it looks like maybe we're gonna get an even higher one. So there is some momentum there, but nothing like crazy yet. So it is a setup that is essentially moving in the right direction, but we're gonna want to see some proof of pudding. And by proof of pudding, I mean that these pan au chocolat this morning is so good. I'm trying not to eat that stuff, but it's so good. You want to break out at least above the recent high. Or maybe even the high above that. Or if you're a bit more conservative, you might want to wait for the$200. Now, why the heck would you want to pay an extra$40? Well, it would give you a higher probability that this thing is actually going to do what you want it to do. We're going to talk about the rights and wrongs and the details of that on Saturday if you join the at the 10x returns workshop. But I like XAR for the reason that if you go back into the wind snap here with all the ETFs and all the stocks and all our research and everything else in there, they are not just holding the big boys, right? So most ETFs say, we're gonna hold all the defense stocks, we're gonna hold the most of the biggest bonds and the least of the small bonds. And that means it's not gonna do very much, because as I said before, the big boys don't move that much because Lockheed Martin getting an extra$100 million from the government is sort of meaningless to them, right? They've got a backlog that's tens of billions of dollars. These guys hold all of the stocks at approximately the same weight. And you can see that here, right? Um, all about 3%. Rocket Labs is a little bit more than that. So therefore, when a specific theme like counter drone emerges, the smaller, more specialized companies can outperform. And this kind of setup of an ETF can capture more of that upside. And so far this year is up 4%, basically nothing at all, right? So this is the easy like tick-box approach to it. Now, how do you find stocks in a sector like this, right? So again, I go into the Winston app, I go into the stocks tab, and I we've got all the markets covered, basically, not just the US, 12,000 stocks who got covered. So if you were in in Europe or your UK or some other tin pot hot country, um, put your country in the in the chat there. People are gonna get terribly offended by this, aren't they? Um it's it's meant humorously. Uh, then put your country in there, and we probably have it covered. Um now you could of course look for individual stocks, but you could also just click on the drones and warfare theme. And by the way, if you are missing, if you think we should cover other trading themes, there's a little suggest button in the bottom, bottom right. Just put your comments in there and let me know. Um, there is a free trial to the entire win snap down below. So you can try it out. It's zero risk. Scrap yourself it, play with it for a week. If you don't like it, you cancel it before the end of the week. But if you like it, you stick around. And if you think we can make it better, which of course we can, I make this better every day. So I use this every day, and I'm always thinking, like, oh, we could do this better. And I was literally just tweaking with it right now, and I'll show you what I did. Um, and the goal is just to give us all access to the same quality data. So I click on drones in in in in warfare and I get 23 results. Not 230 results, because that would be pointless, but 23 results. And we get some pretty good stocks, right? Some are big, some are small. And the one I want to start with is actually here, Axe one. And you could make a watch list out of this quite easily, by the way. So you could click on like this here. You see that? That will add into a watch list, and it'll save it to your standard watch list. So why don't we just make a new one that's called Cuba, right? And now we've got Cuba. You could save them all to the list. Uh, you could just add some of them. All right. So, say the the say axon here, you can click on that. Um, you could even just go compare the top 10. So just hit compare and let's just see them all. And the score we have is sort of a proprietary score. I explain on the in the in the app how we do it. There's even a video on it that I made for you guys. And obviously it's a score of 100, so the higher the better. But what you will notice is for the stocks we're talking about here, they have pretty average scores. Why do they have average scores? Because they are not quality, large businesses with proven business models and billions of dollars in recurring revenue. No, these are new guys. So if you're investing in something new, something tech, something AI, something startup, something drone defense, you are not going to find the big companies that are gonna give you that opportunity. But if you have a small amount of your money in something that is a little bit higher risk, well, say you had a percent in this whole sector and you're going to zero, what would happen to you? You'd go, I sucked a little bit, but you life would go on, right? But if the 1% became 10%, then you would be celebrating and jumping up and down for joy. So that's kind of what we're looking at here. So we show you for each, you know, what's the profit, what's the cash, what's the how stable are they, how's it valued, do they have a good moat? As in, is it hard to replace them? So if I go back here into To Axon, which you might know them for police body cameras. And some people are really upset about that, but it's just the way the world works nowadays, right? They also make tasers. But they've quietly become a major player in counter drone. So the core business is still body cameras and tasers and software for all that. But about 84% of the revenue comes from that recording business. It's like a Netflix, but for police departments, it's a very stable business. But they've acquired a company called D-Drone, which is a counter-drone company. And that division just grew 300% last year. 300%. So you're getting exposure to the counter drone theme, but you're not taking a pure play risk at it because you know they're going to get that police revenue every single month, right? And they made$100 million in revenue from counter drone stuff last quarter. Up 95% last quarter. And yeah, the stock isn't cheap because a lot of people are looking at the sector right now. Now, I'm going to burn here in the sun, so I'm going to have to get myself a hat. I'll be right back. Okay. I think this is going to be a little better. Apologize for the um the product placement. We never, we never ever endorsed or sponsored by anybody because I don't need it. And I don't want to be somebody's bitch, as I said the other day. So there will be zero sponsorship on this channel forever after. And I think it makes us, well, at least more independent, if I might be wrong, but at least this is my opinion. And I didn't say something because somebody paid me for it, right? Now, there are other stocks out there that you might want to look at. And one of them, of course, is the big boys, you know, Northrop Grumman here. And Northrop Grumman, ticker symbol NOC, a bit of a contrarian pick. One of the largest defense contractors in the world. They built everything from, you know, B-21 bombers to space systems, all that sort of stuff. The stock is actually down this year. It's beaten down pretty harshly from the just post-war highs at 30% down here. And there is one indicator that I actually look at. Let me just pull this up for you here in uh in Trade Vision, which is also an app that I built. RSI. And what does that show you? Well, it shows you it goes really high, right? So it kind of goes to like 60, 66. And when it's really high, what happens? Well, say here it was really high. And that was kind of the top of the market, right? And then here when it went really high again, some of that was a genuine rally and then it topped out and it collapsed again. But as it collapses, what happens? We go to really low levels. And if you look at the low levels here, maybe I use a different color for that. It's green for that here. So we're low here, right? We were low over here. We were lowish here, we were lowish there. And what happened? Well, there were lows, there were lows, there were the lows here, right? There were the lows there. So there's an argument to be made that we are potentially oversold. Now, I wouldn't buy it quite yet at this level, but it's certainly something that deserves to be on our watch list for that simple reason that it's just very, very oversold. Why is it oversold? Because people made a lot of money on it. The war happened, and everyone's like, well, this is going to be the high because now everybody can see the trade that we've been in for like six months, and therefore people take profits, right? That's what happens on Wall Street. It's nothing to do anymore with conviction or is it a good business? None of that matters anymore. It's just purely about can we make money out of this in the next quarter? That's how Wall Street runs nowadays. And Wall Street is like 90% of the money out there. So you might have a strong opinion on a stock, but it's it's kind of irrelevant, right? And again, maybe you don't want to hear that because people find that annoying because they've been told that, you know, buy and hold and all that stuff is where you should be. But the reality is that the world's changed, the world's moving faster. And part of that is also people are just worried that we're going to get companies being disrupted much, much more quickly. So if we go here into the next one I want to look at, which is LHX, L3 Harris, it's it's a decent score. It isn't great. You know, three out of five smiling Winston's, mixed quality Winstonces, middle of the pack. Most companies live in this band, and it's true where the earnings just came out. They beat on expectations. And those guys specialize in electronic warfare systems, sensors, communication, all that kind of stuff. It's exactly what you want to know the drones are coming, right? You want to know before they even get off the ground that they're coming. And they're bringing five and a half billion in revenue every quarter. So it's pretty, pretty impressive business. And you can see here that they're turning their business into pure cash, which is good. Their margins are improving. So it's looking very sweet from from many levels, but the stock pulled back pretty harshly. It just collapsed here from the end of the war. Not the end of the war, the middle of the war. Um, and and and what happened here? Well, we had this kind of textbook pattern here. We then broke out, we went up pretty sweetly. A lot of people made a lot of money on that. We know from the breakout, we went up about 26%, which is pretty good in 40 days. And then what happens again? Well, you did another ziggity-zaggity heartbeat line, as I call them here, but they don't have to go up. People obviously think that was a zigzag line, buy it. No, they can also go down, and it did. It went below all the lows, it collapsed here, right? That was the warning sign. That was the second warning sign, and then it pulled down even lower. So, right now, what is it doing? It is consolidating. It's starting to peak back up. It's a little bit early. I'd like to see it at least hit 320 before I'd even think about buying this. And I'd like to see a bit more buying happening here. And at the moment, I'm not seeing that in terms of volume. And maybe that means nothing to you. Maybe you think charts are complete nonsense. I used to think that too. Okay, just open your mind and join me on Saturday, and I'll break it all down for you in a way that everybody can understand, even if you're completely new to this or even if you've been in this for a for a while, it'll it'll help you a lot. Now, the other stock on the on the more conservative side would be Rocket Martin, right? Sort of the ultra-conservative crowd stock. They built the F-35 fighter jet, you know, massive, massive system. And of course, they have counter drone programs. And it's the only mega scap defense stock that's actually up so far this year, a couple of percent. They pay, they pay a nice dividend, about 2.6%, very stable. You can see that here, right? Dividends are actually growing a little bit here. So it's sort of your um, you know, conservative play. But counter drone stuff is not a major revenue driver for them. It's a tiny piece of a massive business, which might be the point if you just want to be in defense, but you want to be in conservative defense. But the Cuba theme is not really gonna drive the stock price very much. So it's sort of the sleep well at night position, if if a stock could ever be that. But it's not gonna double. You see what I'm saying? So it's it's not gonna do all that much for you. Now, if we move into the tier two, right, a little bit more exciting, but also a little bit more risque, then we're coming back into Kratos. So in tier two, stocks move a lot more, higher risk, but also higher potential. Kratos builds unmanned aerial systems, right? They have something called the loyal wing manned drones that they fly alongside managed air manned aircrafts. And they're also developing a hypersonic weapon with a$400 million revenue target. And they're growing. They're growing pretty nicely. You can see there. Look at the sales growth, right? It's like, ooh, well, war is good for some, apparently. They've got a backlog of$2 billion of business. That's business they've already gotten and they haven't delivered on yet. So it's revenue that's going to come and come. Yet oddly, the stock is down from the beginning of the year, something like 35, 60%. I apologize, 60%. Crazy. And if I look again at our RSI here, right, which is that oversold indicator, last time we were at these kind of levels in November, we're bottoming out. And we were bottoming out for quite a while. In fact, we got ourselves a really beautiful heartbeat pattern, and then we finally broke out of that heartbeat pattern and we managed to capture uh, you know, 50, 60% upside. So, what are we seeing again now? Well, we're seeing a heartbeat pattern, but one that's going down. So it's too early, but again, still one for the watch list. Just because it is so oversold, there's a potential this might reabound as the sector gets more attention, gets more love. But it's also, but it's also a warning to you that you can be in the right theme, but in the wrong stock, and you'll then make 60% down uh losses because you didn't know the full story. So I'd encourage you to come and learn the full story we lost on the weekend at um 10xreturns.org, I think it is. There's a link down below in the description. But the business, you can see the business is actually doing well, right? It's growing pretty nicely, margins are stable, cash flow improved in the last quarter, and it's getting punished. So when the business is doing well and the market is pricing it for disaster, you have an opportunity. We don't buy it yet. We wait for the money to start pouring in, we wait for Wall Street to start recognizing it because you can buy the greatest business in the world and you can still lose money if Wall Street doesn't like your stock. If that's happened to you before, put that stock ticker in the comments and share it with us so more people can avoid that mistake. Now, another one on our list is called Elbert Systems Limited, which is an Israeli company. So, what do they do? They offer military aircraft, helicopter systems, commercial aviation systems, unmanned aircraft systems as in drone, electro, opic night visions, countermeasure systems, naval systems, all that sort of stuff. And it's a pretty decent business, actually. Uh there's some strong, strong pillars, some are weaker. It's a$35 billion market cap business. It's not teeny tiny. And numbers look pretty decent, right? They're getting paid up front, they're making money, they even pay a tiny dividend. Dividends have grown almost 50%, which is quite impressive year on year. So they're clearly making some money there. And they have combat validation for their systems. They know it works on the fire, but again, it's pulled off from the peak. It's down some 25% here. And but it's still above the longer-term trend, which is that purple line here, right? So the last time we hit that line was in November down there, which would have been the sweetest buying opportunity in this, in this, this stock forever. Although I think the the more conservative entry would have been slightly higher here. And actually, there would have been another one here, which would have been there. That would have been the next entry. And you would have captured in both scenarios some pretty sweet profits, obviously a lot from there, like 90%. But even if you'd been late to the party, you would have still captured about 30, 30 odd percent there. Right now, it could be setting up for another opportunity. So I want to make sure that I'm watching this, it's a little early, but I want to make sure I'm watching it. I want to wait for the rebound. That's what I'm waiting for, right? I'm not predicting the rebound. I'm not, I'm gonna crystal ball, I don't care what's gonna happen in the future. I'm not doing any of that. I'm just saying here's the reason, here's the theme, and here are some opportunities, but you have to know what to look for to make sure you're not buying something that Wall Street goes, nah, we don't care. And another stock that I'd add to the list as well, which is Red Cat. And again, you can just add this to your watch list. You just hit on the save button up here, and then it's it's added to your watch list. Um, terrible numbers, right? Absolutely terrible numbers. And this is what an early stage business looks like. So it's valued at less than a billion dollars. So it's tiny by Wall Street standards, right? Not making any money at all. It's a microcap pure play. But it's also a risk and reward could get really, really interesting. They make small unmanned drones and they're on the Pentagon's approved blue UAS list, and that means they meet security requirements and they're eligible for Department of War Procurement without any restrictions. And the stock, again, down from the beginning of the year, wherever that was, somewhere here, uh, from the certainly from the peak, it's it's off by about 50%, right? Now, the last time we were in this kind of price level was in November pre-war. Uh, and from there we skywalketed up some 90%. Not saying that's gonna happen, but I'm saying it's worth looking at because it's beaten down pretty heavily. And these kind of small cap stocks are the darlings of hedge fund traders because they can actually move the price. So you just want to watch for the signs of them starting to move the price. You don't want to be in it for some sort of conviction story because it's risky. But if they win a major contract, the stock could double or triple easily. It did it beginning of the year, right? And it did it also September last year, it did it in July last year, it did it in April last year. And when I see the money pouring in, somebody always knows something, right? Even if nobody knows anything, if everybody looks at the same thing and sees the money pouring in, they're gonna start buying it too, and it's an opportunity. But there's also a risk here, of course, that this thing goes to zero. Right? That's just that's just the reality. So you definitely don't want to put all your money into this. Um, I would say add it to a watch list, wait for the right signs. I'll teach you how to how to read the right signs on the weekend. Uh, but I also want to warn you because there are some things I see people do that are really, really daft, uh, and they look at why don't I get a leveraged defense ETF? This is one here. It's called DFEN, Direction Daily Aerospace and Defense Bull 3X, right? Uh Winston sort of looks like, what the heck's this all about? And again, you can add it to a watch list. Uh 43 holdings. But the problem is that from the beginning of the year, this thing is actually down while the sector is actually up. So XAR is actually up, which is the first ETF we looked at. How is it possible that the triple leveraged ETF is down while the non-leveraged ETF is up? Right? Shouldn't it be up three times more? There is something called path decay. And it's something that's really dull and really not sexy, but you need to understand it if you ever buy anything leveraged. The ETF resets its leverage daily. And what that means is that you lose money over time, even if the sector trends upwards. So if you'd held this for the last year, you would have underperformed just buying regular defense stocks by a big margin. So don't use leverage defense or leverage ETFs rather for buy and hold investing. They're designed for short-term traders. They're not designed for people building longer-term investing positions or wealth. They're designed for traders. Now, another position, and this might surprise you that I would say is a trap here, is Palantir. Why would I say Palantir is a trap? You know, we've covered the stock since it was at$20, right? Made all the money on it, it's$135 now. Woohoo, lovely, right? Everyone always sings about their wins and so on. Well, we have so many, we don't need to do it. It's a great stock. 78 is a pretty great score. Uh out of 100, you don't rarely get higher. Sales growth is just accelerating, right? The margins are wonderful. Um, they're very consistent with their profits. Uh, it's just a very good business. It's like a software business. It's just insane, right? Valuation is a little steep, but it's coming down a little bit. But why do I say it's a trap? Palantir doesn't make counter-drone hardware or software. They provide general AI tools to the military. And this Cure story in itself isn't gonna get them so much revenue that's gonna make a huge difference. This is a$300 billion market cap story. So it might leave them a few dollars, but it's not gonna move them by, you know, it's not gonna double or triple or 5x the stock. So don't buy indirect exposure when you can buy direct exposure. Because if you want to be in the counter drone defense thing, go for the companies that actually make the counter drone systems, not just someone who sort of sits on the sidelines. And then another one for our European friends is Rheinmetall. Rheinmetall, you can maybe tell that I'm actually German, is a German defense contractor. It's been around since uh, you know, uh these days. Um, you're not meant to joke about that, are you? And look, look at that, look how much money they're making last quarter, right? 760% increase in cash there. Uh margins are going up. So the Ukraine war's been very, very good for, but it's listed in Frankfurt. It's a German company, right? Their major customer is, you know, the German government, which is lovely when the Germans re-arm, it's exactly what we want to make the world a better place. It's worked so well every time it happened, isn't it? Ah, yes. Um and it looks kind of attractive, it's beaten up a little bit. You know, you'd think, you'd think there'd be something in it. Whereas the but the problem is this. There is no clear catalyst for why the stock would bounce. European defense system is dealing with kind of Ukraine fatigue, this sort of forever war, right? Um spending there is plateaued. If you're a US investor, you might not want to be in in Euros because it's a monkey currency. Uh, again, the Europeans are going to get terribly offended there. But it's true, the currency was entirely created to keep the Deutsche Mark down, right? That's why they let in the Greeks and the Italians and the Portuguese, lovely as they are, you know, they are not the greatest economies in the world. Uh, that's why they did it. Um the Cuba counter-drone narrative is a US-specific catalyst. So whether you love Rheinmetall or you hate it, doesn't matter. They're not going to benefit directly. So it's a, it's a, it's, it's an irrelevance for this particular story. And there's some others that I'd say stay the heck away from. This is one called Drone Shield Limited. It's an Australian company. Uh, it's doing all right, uh, obviously getting a little bit of benefit here, well, quite a lot of growth there from the whole drone theme. But because they're listed in Australia, um I wish I could do an Australian accent. Actually, that was one of my goals in life. Um, to do that. Uh, it's a micro cap, it has very thin trading. So it's yes, a pure play on the theme, right? As in purely drones, but it's tiny and it's listed in Australian dollars, it's terribly illiquid. So you're gonna the difference between the price you are buying and the price someone's selling at is huge, which means when you're getting out of it, you're not gonna get what you think it's worth. So if you're gonna buy a meaningful position, you're gonna move the market against yourself, you need to sell in a hurry, you're gonna get killed, and you're taking the Australian dollar risk. It's just just it just don't make life too complicated. If you're Australian, slightly different story, but still, watch out for the low trading volume there. The key here is, and again, I'm not a financial advisor, I'm telling you what to do. You want to look at this in a strategic way. You don't want to just jump on something because you heard about it on YouTube. Want to think about this, does it fit into what you're doing? Are you already heavily defense exposed? In which case you might want to sit this out. Um, and then you want to look at position size. And then again, we're gonna go into that in great detail on the weekend. Um, smallest best. Smallest best for investors gradually adding to these themes as they unfold is always typically best. But this is something that's going to do what all of these stocks do when we look at you know, war-type things. They will go up a lot and then they will go down a lot, they'll go up a lot, and then they'll go down a lot. So you need to have a strategy for capturing the gains. This is not a buy and hold thing. I actually think the whole buy and hold thing is pretty much over because the market moves too quickly. The hedge funds, the big traders are far too short-term driven now. They want quarterly profits, they don't care about years. You get fired if you say, oh, this year wasn't good, but next year you've got to know. You're gonna get fired as a money manager. So the market just moves more quickly, but the money moves around from sector to sector. And if you know where to look, uh, I actually think it's a brilliant thing for us. Makes life a lot easier in many ways, but it makes life a lot harder if you're just sitting there and you're waiting to buy and hold. Um, so if you're interested in this theme, don't repeat what you've done again and again and again in the past, where you sometimes get lucky, sometimes you get burned. Instead, do it in a way that is managed, where you know the outcomes, you will have no pain, you will only smile about it. Uh, if it works out well, you do tremendously well and you capture the profits. And if it doesn't work out well, it'll be like a tiny scratch, right? Paper scratch. And we can set that up. I can teach you how to set that up. Join me on the weekend, um, how to find the next 10x bagger, not just in this sector or this industry, but in any industry, in any sector, forever, forever forward. All you've got to do is get yourself a free ticket to that at the link that's down below in the description. And if you got some value out of this video, hey, share it with some people. In fact, if you think learning those skills would be useful to somebody else you know, send in the link to the free training on the weekend. And I'm excited to see you there. And I'm now gonna go and uh probably go for a swim and cool down a little bit because it's surprisingly warm here early in the morning. I wish you all the best.