Ride the droneThis breakaway gap leads this stock to a new high, and if it won't be fulfilled then fresh new highs will come.
I believe in drone companies!
This forecast was created to support you, but you have to make your trading decisions independently! As nobody sees the future, I recommend you that always apply risk management during your trading!
AVAV trade ideas
AVAV to Acquire Arcturus UAV, Expanding Product PortfolioAeroVironment to Acquire Arcturus UAV, Expanding Product Portfolio and Reach into Group 2 and 3 Unmanned Aircraft Systems Segments
Total transaction value of $405 million in cash and stock, including $355 million in cash and $50 million in AeroVironment stock.
Arcturus UAV has a demonstrated track record of solid performance, with topline growth exceeding 20 percent for each of its last two fiscal years.
Arcturus UAV’s complementary capabilities provide program diversification, increase key customer penetration and enhance shareholder value
Arcturus UAV is well positioned for ongoing United States Special Operations Command (USSOCOM) Mid-Endurance UAS (MEUAS) task orders, United States Army Future Tactical UAS (FTUAS) program delivery orders and international contracts
Expected to be immediately accretive to revenue growth, adjusted EBITDA margin and non-GAAP diluted EPS, excluding intangible assets, amortization expense and deal and integration costs, and accretive to GAAP diluted EPS by fiscal year 2022
Group 2 and 3 UAS and services, collectively, potentially represent more than one billion dollars in annual contract value, according to an independent forecast.
The Arcturus UAV team has produced strong growth in recent years and has secured strategically important wins in the MEUAS and FTUAS programs, positioning Arcturus as a leader for next-generation program requirements
In connection with the acquisition, AeroVironment has received commitments for a $200 million Term Loan Facility and $100 million revolver (undrawn at close) with Bank of America, N.A. acting as Administrative Agent, and with BofA Securities, Inc., JPMorgan Chase Bank, N.A. and U.S. Bank National Association acting as arrangers. AeroVironment will fund approximately $155 million of the acquisition from cash on hand.
finance.yahoo.com
$AVAV with a neutral outlook following earning releaseThe PEAD projected a neutral outlook for $AVAV following a positive over reaction after earning release placing the stock Drift B
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006. Piggish Play - Long Aerovironment (AVAV)AVAV is a growing player in the Aerospace/Defense sector that is positioned to literally and technically launch into orbit. The precise nature of the stepping-stone type of growth combined with the structurally harmonic base makes for an ideal long-term bullish candidate for the next 6 months - 1 year. I very rarely hold anything this long and I will inevitably continuously avoid drawdowns in a position-practitioner sort of way, but will nevertheless maintain a sizeable equity position for at least 6-12 months.
Why you might ask?
Because I am both fascinated and bullish on recent developments in the aerospace/defense sector. I find the space to be both imminently breaking out and limitless in terms of potential growth. The recent news regarding space travel privatization is one of the cooler and more positive societal updates that nobody seemed all that interested in for longer than a day. The news today about Virgin Atlantic is just another subtle sign that things like space exploration are much closer to reality than most tend to believe. And I don't blame them because it does seem more like fantasy than it does a tangible bottom-line-beating monster of a sector.
Now, while Aerovironment is not as directly involved with things like resource procurement from another planet or limo rides to the moon, it is fundamentally important to the process, should they come to fruition in the near future. Also, it is quite literally a more grounded business model altogether.
The company reports earnings tomorrow and my research indicates that we could be in for a nice bottom beat and an even nicer topline beat. For a growth company in the second stage like we have here, the topline beat is most important for increased likelihood and strength of a post-earnings breakout. Thus, given all the positive buzz surrounding the sector and the high probability of a supporting bottom-line beat, this stock should see a significant upside over the next month.
At a minimum, my price target is 105 before I dare sell a single share. The technical aspects presented in the chart provide additional support for this move and it seems to oscillate to the beat of some harmonic sequence, as evidenced by the sharp, exact nature of its pivotal angles.
Conclusion: I am playing this as a long equity position only. I'm not going to hedge it and I will not even include the position in my regular trading account. I feel that bi-weekly checkups should suffice, assuming that the stock does indeed present an excellent report and also continues to move higher the day after. So, am going to enter half the position now and half the position after the report. To go through all this research and not be confident enough to enter before the report would be a total waste of time. On the other hand, I am a trader and not a gambler/pure-speculator. This method offers a fair compromise, but I don't think it much matters how you plan on strategically entering.
I will be less on top of this play as I am the other Piggish Plays because of its long term nature. Will periodically provide updates over the next coming months, though.
- Astro-not-a-swing-Pig-today
NASDAQ:AVAV
Aerospace Contractors Aerovironment is an aerospace contractor that provides technology and software to the governments various branches of the military for research and development of advanced aerospace technology. The stock is trading at a major low and is forming a double bottom near the low of the stocks price range.
$AVAV Bullish Money Flow Divergence$AVAV has seen a bullish divergence between price movement and money flow (MFI) over the last two weeks. The stock appears to have found a bottom around the $85 support level, starting to rebound nicely from there today.
Looking to go long for a continued recovery leading up to earnings. Targeting $100 by next ER early December.
Note: Informational analysis, not investment advice.
$AVAV Over-Extended - Earnings Next Week$AVAV Appears to be over-extended after gaining almost 50% since its last earnings report in late June. Volume has been unimpressive on its latest run up since early August. I believe a solid beat next week is already priced into the stock for the most part with a P/E more than triple the industry avg (79x vs 23x avg).
Expecting a return back down to earth in the near term - target $70-$75 area by mid-September.
Note: Informational analysis, not investment advice.