Stock Talk
Drones, drones, drones - Everywhere ! Oh "don't worry - there's nothing to be concerned about". That's what the Federal and state government officials are telling us . At the same time, they say "we don't know what they are, the intentions, and who is controlling these drones" - some the size of cars, with multicolored lights and hovering over sensitive areas like nuclear plants and military bases. What the?! The people should not believe their own eyes? Or are these drones from our own government, secretly looking for something? Many are now thinking it's our own defense department that knows what they are. But, the politicians are not in the loop ? - or they didn't get the memo?
With the above prelude, let's get back to stock talk. There are two drone companies that were highlighted here at the Jones Report.
Stock symbols : AVAV and KTOS
AVAV makes the kind of advanced commercial drones that can hover and fly about for business and defense purposes as used in the Ukraine But the Ukrainian defense forces are now making their own drones based on wartime field experience. Could the AVAV drones potentially be used to lock onto recent sightings and fly over for reconnaissance, tracking to learn their source, even take them out as necessary? However, AVAV share price recently tumbled on lower than expected revenues.
Kratos Defense & Security Solutions, Inc. (KTOS)
KTOS makes the kinds of drones that can fly at subsonic speeds and are used to test anti - missile systems for targets presentation. Additionally KTOS has been working on refining drones that can potentially fly with our fighter jets in a task force.
The Jones view here was that KTOS was in development of the advanced drones to be used in task force operations and that is why KTOS bears watching in the $20's. It did seem that AVAV was getting all the market love, while KTOS seemed to be mired in the fog of requirements definition and perhaps confusion. Perhaps the development has reached a milestone. Reported in a Dec 5 PR...
Kratos’ XQ-58A Flies in Joint Emerald Flag Exercise
https://finance.yahoo.com/news/kratos-xq-58a-demonstrates-collaborative-130000939.html
Recently, we have seen critics of the F-35 fighter jet acquisitions with the claim that drones would be a more economical way to meet mission requirements. This is because drones would be intended to fly in tandem with fighter jets and then go in unmanned where conditions require.
This could all result in big contracts coming to KTOS. Perhaps the market is getting the flick and the stock is responding, moving into the higher $20's.
______
More on Stocks to Watch...
Altria Group (MO) seems to be a steady mainstay of a solid portfolio. MO pays about a 7.5% annual
rate on a dividend assigned every quarter. A dividend for fifty five
straight years. They find a way to deliver earnings. When you have to
walk by a band of smokers blowing smoke in your path, just hold the
breath and smile. Think about that great divy and reinvest it for
compound interest. Every now and then add five or ten shares of MO on
dips if possible. view: buy dips, just some.
Kinross Gold (KGC) steady gold miner performer with rising earnings and a good divy for a miner. view: buy dips, just some.
Permian Resources (PR)
The oil and nat gas valves will be turned on with drill baby drill.
Yesterday, PR announced they sold off the pipeline infrastructure in the
Permian basin for $180 Million. It appears that PR is focusing on
drill baby drill. How this all plays out, we shall see. PR is a some
stock here with the current climate of a more liberal use of natural gas
as a cleaner alternative for supplying energy needs to the world. view: hold some.
"About Permian Resources
Headquartered in Midland, Texas, Permian Resources is an independent oil and natural gas company focused on the responsible acquisition, optimization and development of high-return oil and natural gas properties. The Company’s assets and operations are concentrated in the core of the Delaware Basin, making it the second largest Permian Basin pure-play E&P. For more information, please visit www.permianres.com."
"Spec stocks" with "buzz" that have been hot and cold and hot again lately____
Notes on some spec stocks that have seen some volatile action lately./
There is new buzz around a chip act that has billions reserved for Quantum computing companies in America. There is growing awareness (or maybe some hype ?)
around quantum computing. This stems from perceived efficiency in
processing large amounts of data in the advent of an AI world. The
companies are benefiting by releasing more shares to get money to
advance their plans. This is dilutive but the recent demand in the
market has seen a sudden surge in share levels. The market is starting to respond to the promise of efficiency and energy savings of quantum. The future will tell
the rest of the story. [updated 12/17]
Quantum Computing, Inc (QUBT).
running some dd on their photonics chips plans shows that the chips are
planned for their Quantum computers and other markets. Planned to
start manufacturing in a foundry in Tempe Arizona in 2025. Here is
perhaps a useful tidbit... QUBT Photonics chips can be
used at room temperature and employ photons to convey Qubits. Photons
are advantageous for quantum computing due to their speed, low
energy dissipation, and resistance to environmental noise, making them
ideal for scalable and networked quantum system. QUBT's focus includes
leveraging these benefits to create robust quantum platforms in
association with research institutions like the Arizona University
Research Park.
Other
Quantum computers require liquid cooling, so QUBT's may offer
advantages in future quantum computers. A short seller outfit cast shade
on QUBT, but the shade was refuted. More will be known as the story
plays out soon. Update view: The market itself is refuting short shade on potential efficiency advantages of Photonic chips. If the near term foundry plans work out - this would be the start of a brand new chip foundry in the US in early 2025.
Regetti Computing Inc,
(RGTI) This company also produces Quantum computers and has advantage
of being able to daisy chain computers for added Qubit processing
computing power. Regetti quantum computers employ shielded microwave frequencies to convey Qubits. A recent breakthrough was announced. RGTI is now seeing insider sales that puts some shade on the bull side. view: the market is responding to potential of RGTI in a Quantum computing future.
D-Wave Quantum Inc (QBTS) makes available their in- house computers to tackle client's questions. also diluting shares but ? view: has possibilities.
BigBear.ai Holdings, Inc (BBAI) is
an AI contractor. It was flying high for awhile last week. But
there were insiders sales as well as private equity buying. BBAI loses
money but has some rising revenues on government contracts. BBAI was
over $4 on high volume but alas it's back in the $2's. They need more
AI based contracts to help. also diluting shares... Its a watch stock
in case something breaks, but the sales by insiders make it
disappointing. view: hard to say, the market is forward looking in AI, but fundamentals matter too.
ASP Isotopes (ASPI), maybe
a some stock to see how the Isotope foundry plays out in 2025. A short
selling outfit put the cabosh on a good run, but ASPI has refuted the
negativity and plans are in place to deliver with Silicon 28 as the
first isotope to be produced in South Africa. That is just one high
value isotope. The laser process is slated to produce enriched Uranium
(Haleu) for the Bill Gates involved Small modular reactor (SMR)
development. And an advantage is ASPI will use spent fuel rods as the
source. That sounds like recycling here! view: a some stock to see
BUT-
I would not put the farm on ANY spec stock, including all of the above
-- maybe just "some" to see. even if trading, not too much seems
prudent.
More later.
For now, we close by noting that any view on the market and stocks on any particular day may change in the future days to come. That is why we watch and see how our views match up with the reality of the time. But trying to look ahead a few months into the future may be a way to do things. If you think too deep about world events and the recent alliances forming, projecting ahead can be a dicey endeavor. In all - we use the word maybe "some", not "too much" and play it accordingly. Remember, never get arrogant in our various notions because things do change in the market and individual stocks are subject to many factors outside of our control.. So we try to -stay aware.
With all the above caveats and attempted prognostications, I will close this post. Stay tuned for more opining on the market and stocks to watch.
________
