Bruce Campbell (2) Kraken Robotics Inc. PNG-X TOP PICK Jul 09, 2025

Phenomenally good performance. Now at inflection point. Seeing more and bigger contracts both on surveillance and on batteries. Hopefully this is just getting started and it doesn't get bought out before the long runway of earnings growth and share price appreciation materializes.

It is a submarine stock and is on the cutting edge. It has military contracts which have good margins and provide recurrent revenue.

He owned it last year after shares jumped. It's a great business, but the 40x PE is too high and risky. That said, they are doing well.

EPS of $0.06 beat estimates of $0.016 and revenues of $28.11M beat estimates of $27.86M. Sales grew 31%, gross profits were up 32%, with a steady gross margin of 49%. Its product revenue grew 26%, driven by SeaPower subsea batteries. Management plans to expand manufacturing in Nova Scotia to meet growing defense demand, and 2025 revenue guidance is $120M to $135M, around a 40% growth rate. The CEO noted growth in defense and offshore energy sectors. These were strong results, and we are encouraged by its guidance. Shares are not cheap at 52X forward earnings, but its growth rate, margins, and geographic and product expansion are all moving in the right direction. While it is difficult to predict the share price one year out, given its strong sales growth rate of 30%+, in a positive market backdrop, we could see the stock hitting new highs (20%+ from here). We would be comfortable buying PNG today.
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Really cool products like deep-sea drones. New CEO has done an outstanding job. He doesn't own now because valuation is at a premium. Government contracts can take a long time to materialize; but when they do, they're large. Good way to get exposure to the space.

A 6-bagger over the last 3 years, and revenues have tripled in that time. Underwater technology is being taken into the field for oil & gas.

Really likes it, and so do his firm's fundamental analysts. Strong fundamental story. Technicals are awesome. Good run. Add on weakness. Expect a consolidation or correction in next month or two, and that's when he'd be looking to add.

It is involved in the next frontier which is oceans, Makes submersible drones, small to big which will allow the military to expand under the seas where they haven't been able to in the past. It is very good in sonar and battery technology which can stand the under water pressure. In its quarterly reports expectations have been met. Its valuation has increased but growth is good.

Likes it a lot. Would suggest a longer hold than 2-3 years, as it's a relatively small company. Batteries, sonar, military. Products are robust and customers like them, but their small size was an impediment. Borrowed $100M to shore up balance sheet. Contract backlog is growing.

Market cap is now over $1B, which brings more investor interest.