Aerovironment Inc. (AVAV) which develops and produces small unmanned aircraft systems is soaring today up over 10.00 %. FusionIQ subscribers received this email on Thursday July 3rd before todays pop. Guess it pays to be a subscriber !!
Anyway the story for AVAV is as follows: The company has beat earnings estimates the last six quarters and the unmanned aircraft systems are expected to receive more and more funding as part of the new defense budget so growth expectations for AVAV are probably too conservative. In fact Defense Secretary Robert Gates recently stated that Unmanned aerial vehicles (UAVs) can give ground commanders instantaneous information about what they’re facing. He also stated I have taken a special interest in UAVs, because they are ideal for many of today's tasks in today’s wars. They give troops the tremendous advantage of seeing full-motion, real-time, streaming video over a target, such as an insurgent planting an IED on a street corner. This language clearly supports he is behind increasing the budget for these strategic surveillance tools.
With a point and figure target of $ 50.50 and insiders controlling close to 40% of the float AVAV looks to offer good upside potential. We would suggest setting a stop loss commensurate with your personal risk tolerance.