Much More To V2X Than Meets The Eye
Recent reports described two downed helicopter pilots being rescued by an autonomous surface vessel. Developed by Saronic Technologies, the vessel successfully recovered the aircrew after the crash. The event is being described as the first known military rescue involving an autonomous surface vessel.
The rescue also highlights a broader trend. Autonomous systems are beginning to move beyond the realm of research projects and demonstrations into real-world military operations.
Recently, a YouTube video from the Ukraine conflict led us to a new Watch Stock:
V2X, Inc. (VVX)
The vehicle shown above is a dune buggy-style platform known as Tempest. Developed in a rapid prototype by VVX, it has already been credited with defending against multiple drone attacks.
The cool buggy above got our attention. So we decided to look a little deeper into this self-described "scrappy company."
What we found was far more than a rapid prototype vehicle. VVX helps keep some of the military's most sophisticated aircraft and systems operational through aviation maintenance, logistics, training, readiness, and mission support activities. The company generates billions in annual revenue and recently reported a contract backlog approaching $14 billion.
As an aside, VVX appears to be operating in the right places at the right time, with defense needs increasing across multiple regions of the world.
From listening to their recent conference call, the CEO described VVX as "a scrappy company" that responds to client needs and can quickly adapt through rapid prototyping to meet evolving defense requirements.
While the Tempest buggy currently serves in an anti-drone defense role, the broader trend may be even more interesting. Autonomous systems are beginning to emerge across sea, land, and potentially air-based missions. The recent autonomous rescue at sea may be one example of where things are headed.
With VVX's rapid prototyping experience, aircraft maintenance expertise, and innovative land-based platforms, the company appears well positioned to respond quickly as new defense needs emerge.
Strong earnings and a growing backlog tell one part of the story. Tempest tells another.
Put the backlog, recent earnings performance, and rapid response capability together and three words come to mind with VVX:
Stability.
Performance.
Growth.
During the conference call, management also referred to certain "discreet operations." Perhaps part of the reason VVX remains under the radar in its growth areas.
It's almost funny that a YouTube video from a war zone led us to VVX.
What we found was a company operating largely under the radar while executing remarkably well.
Stay tuned. Stay watchful.
- 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.
