A No Brainer With 200%
Profit Potential
The Dynamic Wealth Report
May 13, 2010
by Robert Morris, Editor
High above the battlefield they silently fly. Their electronic eyes
capturing every detail on the ground below. Unsuspecting targets don’t
even notice them (until it’s too late).
What am I talking about?
Unmanned aerial vehicles (UAVs) of course.
These amazing remotely controlled aircraft are performing essential
military roles in conflicts around the globe. They’re ideal for missions
considered too “dull, dirty, or dangerous” for manned aircraft.
UAVs are used mostly for reconnaissance missions.
They’re outfitted with sophisticated video cameras, sensors, radar, and
communications equipment. This state of the art hardware enables UAVs to
transmit surveillance imagery in real-time.
This capability provides a huge advantage for the troops.
Commanders on the ground can get a real-time look at enemy positions. With this information, they can make quick and informed decisions that
save lives.
And best of all, the information is obtained without ever putting a
pilot in harm’s way.
-------------Sponsor-------------
Where Can You Turn $300 Into $1.3 Million Right Now?
Our own small-company specialist, Robert Morris, has found a
way to 'sniff out' tiny penny stocks on the verge of a major breakout. And
the timing for this has never been better.
You see, the system takes advantage of an obscure SEC regulation that
sends penny stock prices through the roof.
We've seen some stocks gain 852%... 5,450%... even 17,496% in no time
flat.
Click here
for the details...
-----------------------------------
UAVs are also used for armed attacks.
The cameras are easily replaced with targeting systems and missiles. Now
the UAV is a silent, deadly assassin in the sky. They can locate a
target on the ground and fire a laser-guided missile to take him out.
And once again, no pilot’s life is ever at risk.
There’s no question UAVs have become an essential tool and weapon of the
U.S. military. Back in 2001, the military had about 200 UAVs. Today, they
have nearly 7,000.
And billions of dollars in more spending is on the way.
The Pentagon has budgeted $24 billion over the next five years for UAVs. A
staggering sum all by itself. However, an independent research firm says
the Pentagon is really going to spend much, much more.
A whopping $80 billion over the next decade to be exact.
That makes UAVs one of the fastest growing areas of the entire military
budget.
So, how can you make money from this trend?
One way is to add some shares of Raytheon (NYSE: RTN) to your portfolio. RTN is a $22 billion aerospace and defense systems supplier. The company
is best known for their industry leading missile and radar systems.
However, RTN has also become a major player in a critical UAV market.
They are now the leading supplier of sensors for UAVs. Sensors are the
cameras, radar, and other devices used to conduct surveillance and
gather intelligence.
Here’s the key.
Sensors are the fastest growing area of the UAV market.
Last year, RTN’s UAV sensors accounted for about 17% of their $25 billion
in sales. And, the strong demand for this critical technology should
help drive growth at RTN for several years.
Despite the company’s dominance in UAV sensors, RTN is misvalued by the
market.
At a recent price of $58, the stock has a P/E of just 11.6x the 2010
estimate of $5.01 a share. That’s well below the defense industry’s P/E
of 29x. And, it’s even less than the S&P 500’s P/E of 24x.
Not what you’d expect for a market leader.
Another reason why I like RTN is their dividend. The company just bumped
the dividend up 21% to $1.50 per share. That translates to an annual
yield of 2.70%. Not too shabby.
RTN is a great way to get exposure to the fast growing UAV market. They
should provide steady returns for several years to come. And, you get a
nice dividend to boot.
However, if you’re looking for something a little more exciting, with a
lot bigger profit potential, then I suggest you take a look at my Penny
Speculator service.
In it, I just recommended a tiny company in this sector that supplies
critical equipment for UAVs. Ratheon’s their top customer and their
revenues are surging.
To get more information on this company, and other exciting penny stock
plays, click here.
With the European debt crisis now under control, investors are moving
back into higher risk areas of the market. A major beneficiary of this
trend is small-cap stocks. As a result, ProShares Ultra Russell2000
(UWM) is up nearly 20% this week.
Print
Page
Bookmark Us
Home | Whitelist Us |
Terms of Use |
Privacy Policy |
Contact Us | Security |
Site Map