Ondas Makes Three Key Acquisitions. Now I’m Planning to Buy More
Here’s why I’m planning to add to this autonomous systems and defense company, as well as buy two other names, in the $10K Portfolio.
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Portfolio holding Ondas Inc (ONDS) announced Wednesday that it acquired three defense technology businesses for a combined $56 million. These additions give ONDS advanced abilities meant to enhance the Company’s overall mission capability. These deals are also meant to aid the company in expanding into addressable markets. These acqusitions include Insignito, which adds acoustic drone detection; Ottopia Defense, which provides AI-powered autonomy and remote-control technology for unmanned systems; and Caribou Labs, which adds navigation and communications capabilities for GPS-denied environments. All three of these companies were privately held businesses.
The aggregate purchase price represents less than three times the businesses’ expected 2027 total revenue, according to estimates. The deals also include up to $32 million in potential earnout payments through 2028, tied to performance-based milestones. The news marks and continues the firm’s push to expand and combine multiple defense technologies into a broader autonomous systems platform, seeking out more complete ways to address defense markets.
Other Portfolio News
- Evolv Technologies (EVLV): On Wednesday, Evolv Technologies announced that the University of Memphis has selected Evolv Express for deployment at Simmons Bank Liberty Stadium, home of Memphis Tigers football and other varsity sports. Installation of the Evolv Express Gen2 systems was completed late last month ahead of the current football season.
- Ocular Therapeutix (OCUL): On Wednesday, Ocular Therapeutix announced that management will be meeting with analysts at Piper-Sandler between this coming monday and next Thursday.
- Planet Labs (PL): On Wednesday, Planet Labs announced the launch of Amazon.ia – Inteligencia Ambiental. This is a multi-partner initiative dedicated to producing timely, actionable intelligence on biodiversity to drive effective conservation and restoration across the Amazon. This initiative is supported by many partners, including Planet and the Bezos Earth Fund, which granted more than $14 million across both the Andes Amazon Fund and the World Resources Institute to support work on the initiative. By combining cutting-edge technology with scientific expertise and local knowledge, the idea is to equip conservationists with the information they need to act more quickly and more efficiently.
- Peloton Interactive (PTON): On Wednesday afternoon, Bloomberg News reported that Peloton Interactive is considering its first-ever bond deal to potentially raise up to $800 million. The fitness company met with investors in recent meetings that had been arranged by investment banker Goldman Sachs (GS) to gauge interest in a secured bond offering with an estimated yield of about 8%, according to the story. The story adds that a final decision has not been made, and a bond sale may not materialize.
Trading
The portfolio is going to use this morning’s weakness to try to add to its long positions in Ondas Inc, and Peloton Interactive. We’ll also take another shot at initiating Paramount Skydance (PSKY) on our terms.
Wednesday’s Intention vs. Actual Trade
- Purchase 15 shares of PSKY at $9.75 (limited) or better.
- Nothing Done.
Thursday’s Intentions
- Purchase 15 shares of PSKY at $9.75 (limited) or better.
- Purchase 10 shares of ONDS at $7.30 (limited) or better.
- Purchase 10 shares of PTON at $4.75 (limited) or better.
Current Positions
Long 60 shares of ASPN at $5.1083. Target Price: $10. Last sale: $5.56.
Long 100 shares of EVLV at $5.7883. Target Price: $8.50. Last sale: $4.95.
Long 110 shares of OCUL at $8.6209. Target Price: $14. Last sale: $9.87.
Long 250 shares of ONDS at $8.0932. Target Price: $12. Last sale: $7.28.
Long 100 shares of PL at $20.3367. Target Price: $26. Last sale: $16.08.
Long 50 shares of PTON at $5.0815. Target Price: $9. Last sale: $4.77.
Long 7 shares of RKLB at $73.8629. Target Price $97. Last sale: $68.80.
Long 120 shares of SOFI at $16.0609. Target Price: $24. Last sale: $16.34.
Short one SOFI $22 Nov 19th call at $1.20, Last sale: $0.25.
Long 50 shares of SWBI at $14.0414. Target Price: $19. Last sale: $13.90.
Long 50 shares of VELO at $10.265. Target Price: $18. Last sale: $10.63.
Cash: $369.60.
Portfolio Value: $9,596.10, -4.0% from inception on March 24.
At the time of publication, Guilfoyle was long ASPN, EVLV, OCUL, ONDS, PL, PTON, RKLB, SOFI, SWBI, VELO; Short FOFI
