Kraken Robotics Inc. (PNG.V)

(Note the short timeframe.)  Quite disappointing. Expectations got ahead of it. Latest acquisition will diversify. Concern that PLTR, a big client, is developing its own underwater batteries. (PLTR has been posting job openings for battery engineers.)

An example of how important it is to manage position size, and to have an exit strategy with smaller companies. He got stopped out, but is now starting to look at it again. Looks to be basing.

He has met with management a number of times. They have benefited from the takeoff in defense spending. The Canadian government has so much money budgeted for defense and some of that money goes to Kraken Robotics because they are the only company in Canada that can do what they're doing. They claim to have a different technology but he is skeptical of that since other companies are trying to replicate it. Other countries could buy their technology but they will have to support their own domestic capability. He raised the question of sustainable margins.

Pullback due to digesting the acquisition, which is extremely synergistic. Healthy margins of 22-23%. Has won big, real contracts, so the momentum will only compound from here. Rising defense budgets, autonomous underwater systems, and protecting infrastructure. Good management. Be patient.

Hold, or accumulate around here.

Business is expanding. Price is a fair bit off its high, but can't pinpoint a specific reason. Longer term, has tailwinds for 5-10 years of upside potential. Watching closely.

The stock has come down because of the competitive nature robotics. This is becoming front page because in Q4 or Q1 2027 Tesla will roll out their line of Optimus robots. Kraken Robotics has created a section related to the market in defense. He has a 12 month target of $9.25.

Her firm looks at defense as part of space/defense exposure. A lot of stocks have pulled back due to Iran conflict being resolved. Defense budgets are going up significantly. She prefers other names.

What's happening in the Strait of Hormuz solidifies the need for this industry. He's concerned whether its technology is really that different from competitors, of which there are many. This could impact margins. Many companies do what they do, and each country will want to support its home-based industry. Be careful at these multiples.

A high-risk volatile name, but likes it long term. Governments are looking at how drones fit into their strategy, so there will likely be a lot of demand. A recent acquisition increases their capacity. They focus on underwater operations, which has little competition. 

Starting to stabilize here, wouldn't mind adding. He's expecting a rally in equity markets into July, a correction potentially into September/October, then a push into mid-2027 (and that's when you can start reducing).

Likes it a lot, really great chart. Lots of people are paying attention, especially on the defense side. After a generation of underinvestment, NATO and allies are spending $$ on underwater defense. Many times, military applications can surface additional commercial applications -- dual-use technology, so to speak. Recent stellar acquisition.

Definitely keep on your radar.

New contracts from both defense and civil side. One knock on it is valuation, but it's really grown into it.

Benefiting tremendously from defense spending. Very bullish on the business. Has run up, but its pipeline has much more to offer. Recent acquisition very smart. Top management. Winning lots of contracts out of Europe.

Small position only.

Great company. Its sonar systems are like Google Maps for the ocean floor. Structural, secular tailwind of defence spending. In January alone, received $35M order for batteries -- their moat is that they operate really well under sea pressure. Premium valuation. Small cap, but excellent growth.

Specialty is sonar sensors and batteries. Recent acquisition into communications and monitoring. Profitable, and so is the acquired company. Continues to get more and more battery orders. 

Undersea drones are the new frontier. No dividend.