
Market Talk
Recently, the challenges of navigating a market stuck in Market Limbo have been presented here. The use of smaller "test positions," while keeping more dry powder on the sidelines, is one tactic aimed at helping protect a portfolio from unnecessary losses.
Going forward, that notion applies to any and all stocks in this volatile market. Opportunities will come and go,but preserving capital while remaining positioned to participate may prove just as important as finding the next winner.
Stock Talk
V2X (VVX) supports the defense industry by maintaining military aircraft and other defense systems around the world. A critical mission.
But VVX is more than just another defense contractor. The company recently blew away expectations by reporting quarterly earnings of $1.53 per share. Yet I still think Wall Street is missing an important part of the story.
By the nature of its work supporting operations where rapidly changing threats emerge, VVX has developed rapid prototyping and engineering teams that can quickly adapt and deliver solutions to critical challenges.
Something I don't believe is showing up on analysts' screens is the potential for these rapid development teams to become a much larger part of the business. As modern warfare continues to evolve, the need for companies that can rapidly develop and field new technologies should only grow.
The Tempest buggy. One example of how VVX is rapidly developing solutions for an ever-changing battlefield.
Recent YouTube videos show the Tempest buggy—rapidly developed by VVX—being used in Ukraine. They imply the company is involved in rapidly developing solutions to evolving threats to peace. It doesn't take much of a stretch to envision similar vehicles eventually operating autonomously in a myriad of support missions.
In Closing
VVX already enjoys Wall Street recognition and trades in the $70s. But I don't believe the market has fully recognized the company's unique positioning in rapidly developing solutions to critical challenges facing defense clients around the world.
Maintaining military aircraft and other defense systems is a critical business—one that helps safeguard the free world. Rapidly solving today's and tomorrow's military challenges could make this self-described "discreet" and "scrappy" company stand out from the crowd. If recent earnings are any indication, that story may already be unfolding, and I don't believe Wall Street analysts are fully capturing it yet.
Time will tell if Wall Street eventually comes to appreciate what I believe is an underrated opportunity. As always, do your own due diligence. VVX may be worthy of a small "test position" while staying watchful.
Coming Soon:
A look at one penny stock that may represent another overlooked opportunity.
- Jones Report
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More later so ....Stay tuned, if you dare!
For now, we close by noting that any view on the market and stocks on any particular day may change in the days to come. That is why we watch and see how our views match up with reality. Looking ahead a few months may be a way to do things - but thinking too deeply about world events and the recent alliances forming, can make projecting ahead a dicey endeavor.
All in all - we use the word maybe "some", not "too much" and play it accordingly. Never get arrogant in our notions because things do change - and individual stocks are subject to many factors outside 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.
ALL in my humble opinion, scroll down and read more. This site does NOT make Buy / Sell recommendations.