AeroVironment, Inc. (AVAV)

AVAV (AeroVironment Inc.)
You know those Army and Air Force commercials where they are flying unmanned aircraft systems (UAS) though a computer screen? Well, this is a company that is benefiting largely since they develop and produce these UAS's. Revenues have grown from $174 million in 2007, to an expected $343 million in 2011. I don't see why the value of these to the military would not continue for years and years since they save lives and provide a tactical edge. While it looks expensive at 39 times trailing earnings it gets more reasonable if we look at 2011 estimates, which it is trading at 20 times those. Analyst are predicting 23% growth per annum for the next five years, so indeed if that type of growth happens, the stock may be a value here. And again, this is a company that truely is cheaper than it appears on a multiple basis due to the fact they have $141 million in cash (and growing), $0 debt, on a market cap of $605 million.

RK

Save Them Troops. We could all just do video games (enemy too)

Caught in a general lowering of military expenses.

Defense & energy play - will get purchased

They sell unmanned ariel reconnisance vehicles to the military but also have small battery and wind businesses as they try to take advantage of the green movement. They will probably have to spin off the green business someday to create two pure play growth companies.

Aerovironment is flat. I don't see it beating the S&P500 but i don't see it falling off the earth either. They need to grow before the price rises any significant amount.

Company makes diverse products, each of which I think has good growth potential, some for near-term future, others longer-term (small UAVs, electric vehicle charging solutions, etc.)

convinced by Rich Smith that UAVs are the future

hope this takes off

Unmanned aircrafts could prove popular in a not so far away reality.

1) UAV's. The market for unmanned vehicles is only going to grow, and while AVAV doesn't produce aircraft that deliver ordnance, it does make units that I believe will play a vital role in combat support and reconnaissance in the future. Inexpensive, stealthy, unmanned, expendable.

2) Energy storage systems. Their products from this division obviously benefit their unmanned aircraft, but have many applications in other vehicles both for the private and public sectors. Their research and development of this technology will pay off in the long run as vehicle fuel efficiency standards increase.

3) Decent amount of cash on hand; well poised to weather further downturns.

Great potential.

This company will take some time to get going, but continually puts forth innovative products that market to a very loyal customer base, the military. In addition, they are on the cutting edge of automotive technology, and therefore will more than likely be able to tap into that market in the near future.

I panicked when I sold out originally due to the high percentage of shorts. Now that the Obama defense budget is out, I am a little late getting back in... Leading edge technology that is in demand - sounds good to me.

Will be about 30.00 or more in about a year.. Today's price and around 20...

I am basically in agreement with MBLaceys pitch concerning the building mounted windmills, and quick battery chargers as growth engines. More the chargers than windmills. I do not expect to see more than a short term slowdown in drone spending. The product seems to work and makes a lot of sense.

I believe that AVAV has now again fallen to the point where it is again a good buy - With a possibility for the small wind power generation and the quick-charge technology beginning to add more revenue in the next couple of years, and the mini-UASs continuing their growth, a P/E under 20 is again acceptable, in spite of the Aerovironment reevaluation of growth for the next year or so. Small wind-power generators should save money for those who install them, and quick-charge can save both time and space in warehouses using electric powered vehicles.

I don't have much experience in the aerospace industrial sector, but UAVs are where the military is headed. If we really hope to win the fights in both Iraq and Afghanistan we will need to buy more planes from this company. Just look at the scorecards of other CAPS members who bought at the current price range.

Post-selloff, the valuation is once again tolerable. It's not an obvious buy yet, but between: (1) the mammoth backlog; (2) what I consider entirely above-board managment comments, and (3) what I firmly believe is a long-term trend of the Pentagon spending money on anything that keeps servicemen at a safe distance from ordnance, long-term, I am convinced AV will outperform the S&P 500.