Kratos Defense & Security Solutions (KTOS)

After trimming, his position is ~1%. Analysts' price target would be a double from here.

Benefits from geopolitical risk and more defense spending worldwide. Shares rose in January, but has since come off. One reason is pressure from the U.S. 10-year bond yield on most growth stocks outside AI. Also, KTOS trades at a high 80x PE. However, it has a strong balance sheet and high growth ahead.

Defence stocks have declined as a resolution to the war looks more certain, but now is a buying opportunity. Almost all governments plan to increase defence budgets, including drones. KTOS is pure-play drones, and are ramping up production in a key drone. The PE has fallen, but still high. 

Out of San Diego, around since 1994. Their big thing is "loyal wingmen", which are drones. Fly beside fighter jets and bombers. 12-month price target of $74. No dividend.

Note that all his Top Picks today aren't in nosebleed territory, but they're very popular. So you really need to go in by thirds. You can buy some today, but save 2/3 to make purchases later. For this name, buy some here at $66, at $60 and again at $55.

Good for small position.