Drones are a growing business that benefit multiple sectors. These include anything from media creation, delivery, to defense. As the technology matures, drones can carry heavier weights and fly further.
Here are the top companies working on drone technology:
🛫 Industrial Aerospace
Drone Delivery Canada Corp (FLT-X)
A drone delivery company that is conducting trials in Northern Ontario, delivering packages that are less than 10 pounds. They are expanding into the US, and are also testing drones which can carry up to 2500 pounds for long distances. The technology can be used for packages, mail, medical supply, or any kind of delivery need.
Drones. He wouldn’t want to own a drone maker, because it is going to be a Chinese industry. Instead of drones, these people are aiming for air rights, which he finds interesting. That is an asset you can’t replicate. Management is very, very skilled. They have built and sold a number of tech companies. They’ve…
They recently completes a first test flight for their electric vertical takeoff and landing (EVTOL) aircraft. They developed the concept through their subsidiary Aurora Flight Sciences, which is also a partner with Uber for their flying taxi project. Their craft is looking very promising as the prototype completed a controlled takeoff and hover before landing.
Time to take profit? She sold it way too early. They are generating great new cash flow. She is not adverse to take profits -- perhaps take out your initial investment. A lot depends on the US market in general. If it pulls back, it would be a good opportunity to buy back in.
Elbit Systems (ESLT-Q)
An Israel-based international defense electronics company that produces Unmanned Air Vehicle (UAV) Systems. These crafts are used by armed forces and governments, including a recent contract with the Brazilian Air Force and by the Swiss Federal Department of Defense for its new reconnaissance drone program.
Israel’s largest publicly traded defence contractor. It is divided into 3 segments. One third is being the largest drone producer globally with the broadest product line. The average drone is military and about 7 years old, and thinks they are going to get replaced. A second third is traditional defence electronics such as fire control…
HEICO CORP (HEI-N)
They produce subcomponents used in commercial and defense satellites, aircraft, Unmanned Aerial Systems (“UASs”) and launch vehicles. Their components were used in NASA’s Curiosity.
Aerospace parts as well as electronic equipment. This has done exceptionally well over time. They are about to split their shares in May, which will probably be a 5 to 4 split, so he would hold back on buying this.
L-3 Communications Holdings (LLL-N)
In the defense field. Their Drone Guardian C-UAS system provides a flexible and scalable system against threats. Their communications devices are often used in other companies drones, since it is a military standard issue.
Northrop Grumman (NOC-N)
An American global aerospace and defense technology company that produces unmanned (UAV) surveillance aircraft. They are a recognized leader in Autonomous Systems. They are a big supplier for the US military and are now opened up to sell to the EU and Japan.
A major U.S. defense contractor that manufactures weapons, and military and commercial electronics. 25% of its revenues come from cybersecurity, a hugely growing area. They also provide the army with drones for thwarting other unmanned systems.
He bought in the last couple of weeks with his target being $220. US defense budgets will hang in under Trump. The outlook in missile defense and the middle east will hang in. They are also a leader in intelligence, software encryption and so on. (Analysts’ price target is $207.05)
Textron Inc (TXT-N)
Textron Systems’ high-performance unmanned systems are used by both military and commercial enterprises. Part of their business is Bell Helicopter, Cessna Aircraft. They are one of the leading providers of business jets and armoured vehicles for the military.
Harris Corp. (HRS-N)
They provide and integrate small UAS in the National Airspace System (NAS)
Most famous for military radios, but also has diversified into a number of unrelated businesses, including “ship to shore” communication offshore oil rigs. There may be a management change coming. He doesn’t like their diversification away from the military business. Although he likes military electronics, there are much easier ways to do it using much…