"There is no force on earth more powerful than an idea whose time has come." - Victor Hugo
Bots in the News:
High multiple valuations, implications from the government shutdown and an unfathomable Fed policy, have led investors to pull back from some of the higher beta/PE stocks that have led the rally of the past years. Last week, the Bot Index declined 1.67% while the broad market was flat.
On top of recent angst over air traffic delays and safety concerns, the air taxi company Joby Aviation announced it was working closely with the War Department. The Bot Index component is known for its recent contracts in the Middle East to provide commercial eVTOL (electric vertical takeoff and landing vehicle) public transportation. Saudi Arabia has indicated it would be ordering 200 aircraft at a price of $1 billion while other countries in the region have adopted Joby’s business case. The company is seeking certification by the FAA to provide similar services in the U.S.
This week CNBC reported Joby ‘completed a test flight of its hybrid defense aircraft in partnership with L3Harris, three months after the companies announced the project.’ The test was a testimonial to the company’s ability to rapidly transform from a commercial entity to a provider to the defense industry. The Trump Administration has ‘fast tracked’ advanced weaponry as it is modernizing the War Department. The company is demonstrating its ability to meet new opportunities both within the commercial and the public environment. The stock has exploded on the upside with a twelve-month increase by 143.82%.
Member: American Economic Association, Society of Professional Journalists, United States Press Association. Institute of Chartered Financial Analysts, Robotic Industries Association (now A3 Automation), Member IEEE.
The Bot Brief is a weekly newsletter designed for economists, investment specialists, journalists, and academicians. It receives no remuneration from any company that may from time to time be featured in the brief and its commentaries, analysis, opinions, and research represent the subjective view of Balcones Investment Research, LLC. Due to the complex and rapidly changing nature of the subject matter, the company makes no assurances as to the absolute accuracy of materials presented.
