I’ve attached the press release from Red Cat which announces the production contract win for the US Army’s short range reconnaissance (SRR) uncrewed aircraft (drone) production contract. Based on this information, the stock is up about 24.5% this morning.
Red Cat is a tiny company. I bought a very small position last May at $1.17/share. I did not buy into this company due to their financials. The reason I bought Red Cat was because I read an article which informed me that they had partnered with another company that enabled their drones with high quality night vision. That speculative buy is $8.65 this morning, up over 640% since I purchased it.
I still consider this company highly speculative. Nevertheless, after this contract win, it’s likely that other branches of the US military as well as Nato will place orders with Red Cat. Given this very significant contract, I thought I would bring this company to the board. Actually, I mentioned it once before a few months ago. But I mentioned it in a reply on a different topic. I was berated by another board member for mentioning a company as small as Red Cat even though I included their enterprise value at that time.
Then and now this company remains speculative. I have not increased my share count even though the stock price has gone up pretty steadily. Their 1Q25 revenue, announced last September was under $3M. If this note has piqued your interest, please take note of their size.