“Dead or alive, you’re coming with me.”
—RoboCop
Full Disclosure: I love RoboCop.
As a kid, that movie made me want to become a vigilante — to take down not only dirt bag criminals but also bloodsucking corporations and their colluding government cronies.
Come to think of it, it was great preparation for my work here at Outsider Club.
I believe one of the things we do best here is break down the areas where investing and personal liberty coexist. And there is no better common ground than the rise of RoboCop technology and the inevitable rise of profits from the industries that gave birth to it.
But first, a few words about RoboCop…
For those of you who haven’t had the guilty pleasure, let me sum up the premise of the ’80s cult classic for you.
It’s 2014, and Detroit has become a living hellhole…
The city is on the verge of total collapse from financial disaster. Criminals roam the streets stealing, raping, and pillaging the remaining businesses and citizens. Law enforcement is at a loss to deal with the decay in any traditional form. So the city privatizes its police force by forging a sweetheart deal with Omni Consumer Products (OCP).
What does OCP specialize in?
Massive robots that can lay waste to a city block in one fell swoop. Their plan is to unleash their massive ED-209 enforcement droids on the city to “clean up” the mess.
Does this all sound eerily familiar?
The whole film was supposed to serve as a cautionary tale about authoritarianism, greed, and corruption. In 1987, it was received as completely far-out science fiction — a dystopian nightmare. But fast forward to today, as a brand new RoboCop movie has just been released so today’s youth can celebrate as RoboCop lays waste to a new generation of criminals.
The fact that it is being rebooted right now is painfully ironic…
They didn’t need to reboot RoboCop. We are already living in the nightmare they warned us about…
You could save yourself the $12 movie ticket by simply turning on the evening news! Just look at these headlines from the past year:
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“Rotting, Decaying And Bankrupt — If You Want To See The Future Of America Just Look At Detroit”
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“Large Cities All Over America Are Degenerating Into Gang-Infested War Zones”
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“7,500 Drones to Invade Skies Over America”
I could go on and on…
We’re living in a new dystopian America. And my guess is it’s going to get worse before it gets better. So we’re left with a choice: Do we cower and acquiesce under the militarization of the police? Do we submit to our new ‘death from above’ surveillance? Do we run into the woods and build a fortified compound?
Or do we reap the inevitable profits from the companies that are supplying this new era of drone warfare?
There’s a saying that you can’t fight city hall… and that’s especially true if they have roving drone squads to crush dissent. So I say the best way to protect yourself is by making as much money as you can right now. Here’s one quick way to start…
“We are going to make A LOT of money.” —Omni Consumer Products marketing manager
Now, while a half robot/half cop doesn’t yet exist yet (that we know of), there are a number of areas in the robotic militarization sector that deserve a closer look — whether you are liberty-minded, profit-minded, or both.
In essence, we’re looking for the Omni Consumer Products of today. Which company has guaranteed military contracts? Which team is developing the most advanced and efficient robotic military machines? Which company has the requisite firepower to satisfy the bloodthirsty urges of our feckless leaders?
Instead of focusing on big names like Boeing and Lockheed Martin, we’re looking at smaller companies with the most potential for big-time growth.
Target number one? AeroVironment (NASDAQ: AVAV).
AeroVironment manufactures security drones, a.k.a. unmanned aircraft systems (UAS).
It is perhaps best known for its “hummingbird” drone. It was created under supervision from the Pentagon’s Defense Advanced Research Projects Agency (DARPA), which not only provided military specifications but also a cool $4 million to develop it.
It looks awfully cute and unassuming, come to think of it…
*Courtesy of AeroVironment
But that’s the idea: It’s supposed to blend in with the surroundings and record and report any goings-on without anyone suspecting they are being monitored. It seems pretty effective… and it’s a hell of a lot more subtle than a huge robot policeman shouting at you to “cease and desist.”
From the L.A. Times:
Equipped with a camera, the drone can fly at speeds of up to 11 miles per hour. It can hover and fly sideways, backward and forward, as well as go clockwise and counterclockwise, by remote control for about eight minutes.
The quick flight meets the goals set forth by the government to build a flying “hummingbird-like” aircraft. It also demonstrates the promise of fielding mini-spy planes. Industry insiders see the technology eventually being capable of flying through open windows or sitting on power lines, capturing audio and video while enemies would be none the wiser.
“The miniaturization of drones is where it really gets interesting,” said defense expert Peter W. Singer, author of “Wired for War,” a book about robotic warfare. “You can use these things anywhere, put them anyplace, and the target will never even know they’re being watched.”
It operates in both the civilian and military security markets.
Currently, AVAV’s main clients include agencies of the U.S. Department of Defense. But last week, the company partnered with the mighty Lockheed Martin to market its drones to a “broader group of customers.”
Its stock rose 6.5% on the news.
The partnership focuses on its high-altitude Global Observer drone, which cruises at 55,000 feet and can stay airborne for up to a week. That kind of duration puts these smaller drones to shame.
This drone is already in the process of obtaining FAA certifications and is expected to be one of AeroVironment’s major growth drivers over the next few years. The deal exemplifies the rise of the drone, not only for military use but also for the RoboCop world of civilian control and intimidation.
Dead or Alive, You’re Coming with Me
Drone spending is projected to hit almost $90 billion over the next decade. That isn’t chump change…
And that money doesn’t care if you are scared to death of drones or find them to be some quixotic fad. They are here to stay. Whether they will be used for tracking weather patterns, delivering Amazon packages, or reigning down fire on “enemies of the state” is yet to be seen.
What isn’t in question is the profit potential.
And our Technology and Opportunity letter has been churning out profits not only on RoboCops, but on RoboMaids, RoboWorkers, and RoboDoctors. They are already up 30% for the year… with a couple triple-digit gains to boot.
I highly urge you to check out the portfolio before these technologies really ramp up. Time is of the essence…
In the words of RoboCop, “You now have 15 seconds to comply.”
