From the article in the last posting:
So without any further ado, here are three publicly-traded companies that will directly benefit from the burgeoning drone revolution.
1. First up is IXYS Corp. IXYS . We’re talking about a company that supplies power controllers and other power chipsets that every robot, drone and wearable sold will need. The common denominator of all electronic devices, drones and robots is that they need power. Controlling that power efficiently is obviously going to be a huge factor in making drones, robots and wearables cheap enough to operate in a power-starved world. Solar-powered units that don’t need recharging still need power chips.
The company’s growing its top line at 15% a year and earnings growth will be much bigger than that if management executes. IXYS is currently valued at less than 1x sales and is seeing huge demand from industrial power and communications markets. With $3 per share in net cash as well as zero debt, there’s some financial flexibility here. The company should report at least a $1 per share in earnings next year, giving it a 10x forward price-to-earnings ratio.
If the company’s management delivers on margins and topline growth, we’re looking at up to $2 per share in earnings in two to three years.
I first highlighted IXYS a couple years ago when I turned from long-time alternative-energy bear to bull as the market finally bottomed. This was about the same time I published my book “100 Stocks for the Clean Tech Revolution” and I recently started buying some for myself.