Drones will be a key factor in the development of the global economy in the coming years. The drone industry has been rapidly growing at an exponential rate and forecasts for the years to come are also very exciting in both units sold and market value. Hundreds of companies are active around the world and many innovative start-ups are seeking funding from government programmes and venture capitalists across three continents.
A technology race is under way between the USA, Europe and Asia. Getting left behind in this robotics development means losing competitiveness and slowed economic development. The rapid rise of this multi-billion market titillates the appetite of Venture Capital that are pouring a lot of money in a selected number of startup companies all over the world. Institutional Investors and major funds have also understood the earnings potential of drones in the medium to long term and have already been buying into the capital of drone companies for some years.
What about the Individual Investors? Despite the fact that the general public is not yet aware of this investment opportunity, the drone ecosystem already allows to invest in a wide choice of equities. Our proprietary database contains 40 public companies traded on major stock exchanges and one thematic ETF. Among these public companies 7 of them are “ancillary” to the drone businesses, while 33 of them are drone platform manufacturers (civil and/or military ones).
Their Market Capitalization ranges from a tiny USD 147,000 to an astonishing USD 97.3 Billion. In this Outlook we decided to include all drone companies regardless their market capitalization in order to provide the readers with a complete overview of the available stock as at December 2016. The average yearly performance of the entire 40 stock portfolio is a rewarding +76.4%. As we wrote before, the volatility among the 40 securities is quite high with yearly performances widespread from a very sad -96.2% made by a small UK company to an incredible +2,700% made by a small Canadian one.
Usually asset managers decide to cut the thinner companies out in order to avoid volatility peaks (i.e. companies with a market capitalization lower than USD 100 million). In this case our portfolio would shrink to 23 stocks and its yearly performance would be a good 11.7%.
This Outlook is divided in three parts:
- The first four chapters gives an overview of the technology
- The next eight chapters explain the developing market for drones and drone applications, gives some forecasts, discuss the behaviour of both Institutional Investors and individual investors and propose some selection criteria for drone stocks
- The final six chapters make in-depth analysis of the thematic ETF and all drone public companies by means of 40 analysis sheets that examine both fundamental characteristics and technical (charting) aspects
1. Executive Summary
2. Definition Of Drone
3. UAV Configuration Types
4. UAV Components
5. How Drones Relate With Disruptive Technologies
6. Market Data And Forecast
7. Venture Capitals Funding The Drone Industry
8. Big Players Enabling The Rise Of Drones
9. Ownership Of Drones Manufactures
10. Application Areas
11. Counter-Drone Systems
12. Institutional Investors Vs. Individual Investors
13. Selection Criteria For Robotic Stocks
14. Managed Funds Etfs And Certificates
15. Analysis Of A Thematic ETF
16. Forty Public Drone Companies
17. Desirable Prerequisites For Drone Stocks
18. Robotic Stocks Performance Tables
19. Investing In Ethical Stocks
20. Analysis Sheets Of Listed Stocks
21. Analysis Of European Stock Sheets
22. Analysis Of Us & Canadian Stock Sheets
23. Analysis Of Asian & Pacific Stock Sheets
25. About The Analyst