Jesse GambleKraken Robotics Inc.PNG.VCOMMENTJan 27, 2025

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.

High growth. Doing everything right. Pretty big acquisition recently diversifies its offerings and facilities.

Wishes he owned more. They make batteries for autonomous weapons. There will be explosive growth in drones. Sometimes he struggles with the valuation, but is a great name.

(Note the short-ish timeframe.)  This week, it received $35M in battery contracts to 3 undisclosed customers.

What do you do with a stock that's gone up like this? His team looks at the rate of change in the trend of earnings. This isn't a cheap stock, but it continues to grow. Fantastic growth, but multiple's very high. As long as the growth continues, the stock will continue on its way. Future for defense is very bright, especially in underwater. Add on a pullback, but don't chase.

We feel that the continued increased global spending on defense can be a major catalyst, as well as its revenue mix shift towards its higher margin services offerings. 

Its market cap has grown significantly, and it now exceeds the TSX minimum requirements, it also seems to meet the public float and liquidity requirements, and the share price currently exceeds the informal >$2 price, but sustained price action is also important. We have not seen any news that it will list on the US exchange.
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(Note the short timeframe.)  Underwater is still a huge opportunity for defense. Really strong point is its battery technology that can withstand compression underwater.

Remarkable job pivoting to defense. Thankfully a lot of geopolitical conflicts around the world have eased, but that's why the stock's probably come back down. Keep a core position, perhaps 2-3%. As it goes up toward $5, take some money off the table. When it goes down, buy the dip.

He bought this 6-7 years ago. They make incredible products. Growth is good. Are in a hot sector--underwater defence. But business will be lumpy due to large contracts with governments and navies. Doesn't own it now because of the high valuation.

Analysts expect EPS of $0.013 and sales of $34.48M. The earnings date has not been confirmed yet, but early estimates call for sometime in the next few weeks. We expect decent numbers on the sales front. Its earnings can be lumpy based on timing of contracts and execution, but we think that guidance will be strong.
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