On March 5, drone insanity gripped investors. They ran up the stock of drone maker AeroVironment by $6.71, or 21.33%, after the company reported earnings the day before slightly ahead of expectations. Ill-informed investors with stars in their eyes jumped on the chance of making money from commercial drones as
We are buying to cover $AVAV. Friday’s closing price is $25.33. Our original short was based on the thesis that drone business has become more competitive and margins are declining while the Wall Street stays enamored with the apparent sexiness of drones killing terrorists. FY2011 defense budget submission creates more
At the Paris Airshow $BA (Boeing) announced that it is getting into the unmanned aircraft business. This is a major change and will adversely effect the business of AVAV. Consider scaling a short sell on AVAV.Please be aware of the high short interest and periodic short squeezes in the name.