Monday, May 11, 2009 11:55:04 AM
By Rich Smith (TMF Ditty)
May 8, 2009 | Comments (4)
Recs
7
AVAV
AeroVironment, I
Rate AVAV CAPS Rating 3/5 Stars
$28.85 $0.76 (2.71%)
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"Hey! Who's Flying This Thing?" 2009 Edition
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"To me, [AeroVironment (Nasdaq: AVAV)] is first and foremost a defense contractor ... dogfighting giants like Boeing (NYSE: BA), Lockheed (NYSE: LMT), and Northrop (NYSE: NOC) for unmanned-aerial supremacy in the sky. ... As for AV's ... fast-charging rechargeable batteries ... basically, I've written off "PosiCharge" as a technological curiosity, but little more."
How wrong I was. When Motley Fool Rule Breakers recommendation AeroVironment inked a deal to distribute PosiCharge systems at Toyota (NYSE: TM) forklift rental locations across the U.S. last year, I should have seen the writing on the wall. I didn't. Shame on me.
Fool me once, fool me twice...
If I'd had sufficient foresight, perhaps I would have anticipated the news that sent AeroVironment (AV) shares rocketing 18% higher yesterday (with an 8% give-back this morning). In short, the company allied with another Japanese motor icon, Nissan (Nasdaq: NSANY), to electrify the District of Columbia's automobile fleet.
A trickle of details on the deal have emerged: The D.C. city government intends to first purchase "some" PosiCharge systems from AV, and then install them at strategically located recharging stations around the city. This should happen by the spring of 2010. A few months later, D.C. will purchase "about 100" electric cars from Nissan and begin its grand experiment. (And word has it that Nissan's first mass-produced electric cars will indeed be ready for sale in 2010.)
"Some" stations? "About 100" cars?
I know, I know. So far, this doesn't sound like big news. Also, we have no idea what revenues are involved for either AV or Nissan. It hardly seems the stuff of which 20% price jumps are made. Yet similar jumps happen at "story stocks" like AV all the time. Remember the 12% bump First Solar (Nasdaq: FSLR) got when China unveiled a solar subsidy program almost totally lacking in detail back in March?
Plus, this is only the beginning. According to AP, which reported the story yesterday, D.C. aims to "bring hundreds of electric cars and charging stations to the city" over time. And in the bigger picture, D.C. seems to be laying the groundwork for a program that could be replicated in other cities -- magnifying the scale of [whatever revenues we're talking about] many times.
Foolish takeaway
Nearly 100 years ago, Vladimir Lenin told us that: "Communism is Soviet power plus the electrification of the entire country." AeroVironment shareholders can tell you today: "Electrifying a city works out pretty well for capitalists, too."
Recent AVAV News
- AV Successfully Flight Tests JUMP 20 VTOL UAS with a Heavy Fuel Engine • Business Wire • 06/18/2024 01:10:00 PM
- AeroVironment, Inc. Schedules Fourth Quarter and Full Fiscal Year 2024 Earnings Release and Conference Call • Business Wire • 06/13/2024 09:21:00 PM
- AeroVironment to Host 2024 Analyst and Investor Day in New York City on June 27 • Business Wire • 06/10/2024 08:43:00 PM
- Form SD - Specialized disclosure report • Edgar (US Regulatory) • 05/31/2024 12:00:10 PM
- AeroVironment to Develop its Wildcat Autonomous VTOL UAS for DARPA’s ANCILLARY Program • Business Wire • 05/28/2024 01:10:00 PM
- AV’s Switchblade 600 Selected for Tranche 1 of the U.S. Department of Defense’s Replicator Initiative • Business Wire • 05/07/2024 01:10:00 PM
- AeroVironment, Inc. to Present at the Bank of America Transportation, Airlines, and Industrials Conference • Business Wire • 05/02/2024 09:33:00 PM
- AV Unveils New AI Capability and Autonomy Kit for Unmanned Systems • Business Wire • 04/23/2024 01:10:00 PM
- AV’s Switchblade 300 Selected for U.S. Marine Corps’ Organic Precision Fires-Light Program • Business Wire • 04/18/2024 08:10:00 PM
- AV Enters Teaming Agreement with Parry Labs to Develop Modular Next-Generation Long Range Reconnaissance UAS • Business Wire • 04/15/2024 08:10:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/11/2024 03:51:40 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/09/2024 12:00:48 AM
- Form 8-K/A - Current report: [Amend] • Edgar (US Regulatory) • 03/08/2024 08:43:50 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 03/07/2024 09:07:09 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 03/07/2024 08:22:24 PM
- AMD Hits Regulatory Roadblock, GitLab’s Stock Tumbles on Disappointing Earnings, and Latest News • IH Market News • 03/05/2024 11:05:08 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 03/04/2024 10:19:49 PM
- AeroVironment Announces Fiscal 2024 Third Quarter Results • Business Wire • 03/04/2024 09:10:00 PM
- Form 8-K/A - Current report: [Amend] • Edgar (US Regulatory) • 02/22/2024 05:35:04 PM
- AeroVironment, Inc. Schedules Third Quarter Fiscal Year 2024 Earnings Release and Conference Call • Business Wire • 02/19/2024 07:37:00 PM
- AeroVironment’s Puma 3 AE Now Offers Extended Endurance of Up To 3 Hours • Business Wire • 02/14/2024 02:10:00 PM
- AeroVironment’s Tomahawk Product Line Awarded $2.67 Million Contract by the Department of Defense for Grip Tab Active Controllers • Business Wire • 02/08/2024 02:10:00 PM
- AeroVironment Announces First Successful Multi-Drop, Live Fire GPS-Guided Shryke Munitions from a VAPOR 55 MX Unmanned Aircraft System • Business Wire • 01/09/2024 02:10:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 12/12/2023 05:54:49 PM
- AeroVironment Awarded $16 Million U.S. Navy Contract for the Advancement of Video Analytics and Computer Vision Research to Support Multi-Domain Robotics Initiatives • Business Wire • 12/12/2023 02:10:00 PM
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