This is not my normal investment, but I strongly believe that drones will become a much more significant feature of life, they will be used by many services not just the US army. I looked around for investments in that field and stumbled on Aerovironment a strange company that originated with the desire to fly and move with minimum engines, i.e. they specialised in lightweight components and tiny efficient engines. From that they got into small engines and eco friendly cars and eventually into drones. Most companies making drones are huge technology giants (boing, Northrup), and drones is only a tiny part of their business. For Avav its the majority.
LINK TO WEBSITE
There latest results show a company doing well from the technology. The shares are around $27 quite a high buy price (P/E 16. PEG 1), but I think they have potential.
This what they say about the opportunity in their annual report.
The market for small UAS (unmanned aircraft) has grown significantly over the last several years, initially due to the U.S. military’s post-Cold War transformation, and now more directly by the demands associated with the current global threat environment. Following the end of the Cold War, the U.S. military began its transformation into a smaller, more agile force that operates via a network of observation, communication and precision targeting technologies.
This transformation accelerated following the terrorist attacks of September 11, 2001, as the U.S. military required improved, distributed observation and targeting of enemy combatants who operate in small groups, often embedded in dense population centers or dispersed in remote locations. We believe that UAS, which range from large systems, such as Northrop Grumman’s Global Hawk and General Atomics’ Predator, Sky Warrior, Reaper and Grey Eagle,
to small systems, such as our Raven, Wasp and Puma, serve as integral components of this transforming military force.
These systems provide critical observation and communications capabilities serving the increasing demand for actionable intelligence, while reducing risk to individual ‘‘warfighters.’’ Small UAS can provide real-time observation and communication capabilities to the small units who control them. As we explore opportunities to develop new markets for our small UAS, such as border surveillance, law enforcement, first response and infrastructure monitoring, we expect further growth through the introduction of UAS technology to non-military applications once rules are established for their safe and effective operation in each country’s national airspace.
LINK TO WEBSITE
There latest results show a company doing well from the technology. The shares are around $27 quite a high buy price (P/E 16. PEG 1), but I think they have potential.
This what they say about the opportunity in their annual report.
The market for small UAS (unmanned aircraft) has grown significantly over the last several years, initially due to the U.S. military’s post-Cold War transformation, and now more directly by the demands associated with the current global threat environment. Following the end of the Cold War, the U.S. military began its transformation into a smaller, more agile force that operates via a network of observation, communication and precision targeting technologies.
This transformation accelerated following the terrorist attacks of September 11, 2001, as the U.S. military required improved, distributed observation and targeting of enemy combatants who operate in small groups, often embedded in dense population centers or dispersed in remote locations. We believe that UAS, which range from large systems, such as Northrop Grumman’s Global Hawk and General Atomics’ Predator, Sky Warrior, Reaper and Grey Eagle,
to small systems, such as our Raven, Wasp and Puma, serve as integral components of this transforming military force.
These systems provide critical observation and communications capabilities serving the increasing demand for actionable intelligence, while reducing risk to individual ‘‘warfighters.’’ Small UAS can provide real-time observation and communication capabilities to the small units who control them. As we explore opportunities to develop new markets for our small UAS, such as border surveillance, law enforcement, first response and infrastructure monitoring, we expect further growth through the introduction of UAS technology to non-military applications once rules are established for their safe and effective operation in each country’s national airspace.
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