Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
A Simple Way to Preserve Your Wealth Amid Uncertainty - 11th Aug 20
Precious Metals Complex Impulse Move : Where Is next Resistance? - 11th Aug 20
Gold Miners Junior Stcks Buying Spree - 11th Aug 20
Has the Fed Let the Inflation Genie Out of the Bottle? - 10th Aug 20
The Strange Food Trend That’s Making Investors Rich - 10th Aug 20
Supply & Demand For Money – The End of Inflation? - 10th Aug 20
Revisiting Our Silver and Gold Predictions – Get Ready For Higher Prices - 10th Aug 20
Storm Clouds Are Gathering for a Major Stock and Commodity Markets Downturn - 10th Aug 20
A 90-Year-Old Stock Market Investment Insight That's Relevant in 2020 - 10th Aug 20
Debt and Dollar Collapse Leading to Potential Stock Market Melt-Up, - 10th Aug 20
Coronavirus: UK Parents Demand ALL Schools OPEN September, 7 Million Children Abandoned by Teachers - 9th Aug 20
Computer GPU Fans Not Spinning Quick FIX - Sticky Fans Solution - 9th Aug 20
Find the Best Speech Converter for You - 9th Aug 20
Silver Bull Market Update - 7th Aug 20
This Inflation-Adjusted Silver Chart Tells An Interesting Story - 7th Aug 20
The Great American Housing Boom Has Begun - 7th Aug 20
Know About Lotteries With The Best Odds Of Winning - 7th Aug 20
Could Gold Price Reach $7,000 by 2030? - 6th Aug 20
Bananas for All! Keep Dancing… FOMC - 6th Aug 20
How to Do Bets During This Time - 6th Aug 20
How to develop your stock trading strategy - 6th Aug 20
Stock Investors What to do if Trump Bans TikTok - 5th Aug 20
Gold Trifecta of Key Signals for Gold Mining Stocks - 5th Aug 20
Stock Market Uptrend Continues? - 4th Aug 20
The Dimensions of Covid-19: The Hong Kong Flu Redux - 4th Aug 20
High Yield Junk Bonds Are Hot Again -- Despite Warning Signs - 4th Aug 20
Gold Stocks Autumn Rally - 4th Aug 20
“Government Sachs” Is Worried About the Federal Reserve Note - 4th Aug 20
Gold Miners Still Pushing That Cart of Rocks Up Hill - 4th Aug 20
UK Government to Cancel Christmas - Crazy Covid Eid 2020! - 4th Aug 20
Covid-19 Exposes NHS Institutional Racism Against Black and Asian Staff and Patients - 4th Aug 20
How Sony Is Fueling the Computer Vision Boom - 3rd Aug 20
Computer Gaming System Rig Top Tips For 6 Years Future Proofing Build Spec - 3rd Aug 20
Cornwwall Bude Caravan Park Holidays 2020 - Look Inside Holiday Resort Caravan - 3rd Aug 20
UK Caravan Park Holidays 2020 Review - Hoseasons Cayton Bay North East England - 3rd Aug 20
Best Travel Bags for 2020 Summer Holidays , Back Sling packs, water proof, money belt and tactical - 3rd Aug 20
Precious Metals Warn Of Increased Volatility Ahead - 2nd Aug 20
The Key USDX Sign for Gold and Silver - 2nd Aug 20
Corona Crisis Will Have Lasting Impact on Gold Market - 2nd Aug 20
Gold & Silver: Two Pictures - 1st Aug 20
The Bullish Case for Stocks Isn't Over Yet - 1st Aug 20
Is Gold Price Action Warning Of Imminent Monetary Collapse - Part 2? - 1st Aug 20
Will America Accept the World's Worst Pandemic Response Government - 1st Aug 20
Stock Market Technical Patterns, Future Expectations and More – Part II - 1st Aug 20
Trump White House Accelerating Toward a US Dollar Crisis - 31st Jul 20
Why US Commercial Real Estate is Set to Get Slammed - 31st Jul 20
Gold Price Blows Through Upside Resistance - The Chase Is On - 31st Jul 20
Is Crude Oil Price Setting Up for a Waterfall Decline? - 31st Jul 20
Stock Market Technical Patterns, Future Expectations and More - 30th Jul 20
Why Big Money Is Already Pouring Into Edge Computing Tech Stocks - 30th Jul 20
Economic and Geopolitical Worries Fuel Gold’s Rally - 30th Jul 20
How to Finance an Investment Property - 30th Jul 20
I Hate Banks - Including Goldman Sachs - 29th Jul 20
NASDAQ Stock Market Double Top & Price Channels Suggest Pending Price Correction - 29th Jul 20
Silver Price Surge Leaves Naysayers in the Dust - 29th Jul 20
UK Supermarket Covid-19 Shop - Few Masks, Lack of Social Distancing (Tesco) - 29th Jul 20
Budgie Clipped Wings, How Long Before it Can Fly Again? - 29th Jul 20
How To Take Advantage Of Tesla's 400% Stock Surge - 29th Jul 20
Gold Makes Record High and Targets $6,000 in New Bull Cycle - 28th Jul 20
Gold Strong Signal For A Secular Bull Market - 28th Jul 20
Anatomy of a Gold and Silver Precious Metals Bull Market - 28th Jul 20
Shopify Is Seizing an $80 Billion Pot of Gold - 28th Jul 20
Stock Market Minor Correction Underway - 28th Jul 20
Why College Is Never Coming Back - 27th Jul 20
Stocks Disconnect from Economy, Gold Responds - 27th Jul 20
Silver Begins Big Upside Rally Attempt - 27th Jul 20
The Gold and Silver Markets Have Changed… What About You? - 27th Jul 20
Google, Apple And Amazon Are Leading A $30 Trillion Assault On Wall Street - 27th Jul 20
This Stock Market Indicator Reaches "Lowest Level in Nearly 20 Years" - 26th Jul 20
New Wave of Economic Stimulus Lifts Gold Price - 26th Jul 20
Stock Market Slow Grind Higher Above the Early June Stock Highs - 26th Jul 20
How High Will Silver Go? - 25th Jul 20
If You Own Gold, Look Out Below - 25th Jul 20
Crude Oil and Energy Sets Up Near Major Resistance – Breakdown Pending - 25th Jul 20
FREE Access to Premium Market Forecasts by Elliott Wave International - 25th Jul 20
The Promise of Silver as August Approaches: Accumulation and Conversation - 25th Jul 20
The Silver Bull Gateway is at Hand - 24th Jul 20
The Prospects of S&P 500 Above the Early June Highs - 24th Jul 20
How Silver Could Surpass Its All-Time High - 24th Jul 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Watch the Skies... for Investor Profits

Companies / Technology Mar 02, 2015 - 04:31 PM GMT

By: Investment_U


Sean Brodrick writes: Here is one of the scariest data points I’ve seen this year: nearly 80% of consumers are willing to pay extra for drone delivery. We’re talking everything from books to pizzas.

I can just imagine what the skies over my little burg of Delray Beach, Florida, will look like.

And the noise! It will be like an armada of terrier-sized mosquitoes making Stuka dive-bombing runs.

Regardless, on February 15, the Federal Aviation Administration (FAA) officially opened Pandora’s Box. That’s when it announced its proposed rules for small commercial drones (those fewer than 55 pounds).

The proposed rules are considerably less strict than expected. Here are some concerning details:

  • Commercial small drone operators will not need a commercial pilot license, just a special “Unmanned Aircraft Systems (UAS) operator certificate.” This will be much easier to get than a pilot’s license and will cost less than $300. A 17-year-old can get a UAS certificate.
  • Small drones will not need to meet airworthiness standards. Just a quick preflight check by the operator will suffice.
  • The FAA is considering a different set of rules for “Micro UAS” drones (drones under 4.4 pounds). These drones would face even lower regulatory hurdles.

The news isn’t all bad. A drone will need to be flown within an operator’s eyesight and can’t climb above 500 feet or go faster than 100 mph. Flights can be made only during daylight hours. They cannot be flown over people (though how will that be enforced?). And drones still can’t drop objects.

But to all this I add “for now.” Because once you open Pandora’s Box ‘o Drones, who knows where it ends?

The End of Backyard Privacy?

Look, I don’t mean to sound like a Luddite. I’m not against new tech. Far from it. I’m also not the guy who types up rants about kids these days (I save those rants for home). But anyone who can’t see the downside to fleets of drones flying through our neighborhoods needs to wake up and smell the drone-delivered coffee.

For one thing, it’s an end to backyard privacy. Period. And I’m not just talking about police snoops, though there will be plenty of those. How do you know when a drone is piloted by the police or your friendly neighborhood pervert? (Answer: You don’t.)

Then there are the hazards. It’s dangerous enough driving to work as it is. Just wait until some barely licensed idiot loses control of their drone over I-95.

And, again, there’s the noise. Yeah, I’m probably going to hate the noise the most.

The president is worried, too. And not just because some drunk recently landed a drone on the White House lawn. On the same day the FAA announced its small drone rules, Obama issued a presidential memorandum on “Promoting Economic Competitiveness While Safeguarding Privacy, Civil Rights, and Civil Liberties in Domestic Use of Unmanned Aircraft Systems.” It lays down guidelines on how long drone-gathered data can be kept and addresses other privacy concerns.

Of course, the problem with guidelines is they’re just guidelines.

Here Come the Lobbyists

Already, Washington is getting pushback on any serious drone regulations. Lobbyists representing Amazon (Nasdaq: AMZN) and Google (Nasdaq: GOOG), as well as aerospace firms and the news media, say they will try to convince regulators that some proposed limitations are unnecessary.

The reason, according to the drone lobby, is that cutting-edge technologies make drones inherently safe. And they might get their way…

Lobbying by drone special interests surged from $35 million in 2011 to more than $186 million in 2014. Could money triumph over the public good?

This big trend may be unstoppable. Here are some other fascinating facts:

  • Only 12% of consumers say they wouldn't trust drone deliveries.
  • A whopping 28% of U.S. consumers make Web-based purchases at least once a week.
  • The number of drones in the U.S. is projected to hit 30,000 by 2020.
  • Right now, the Air Force has between 65,000 and 70,000 people working to process drone-collected data and footage.
  • Cape Canaveral is now a drone base. U.S. Customs and Border Protection fly drones on our northern, southern and southeastern borders. And few Americans even know it.

On the Bright Side: Profits Take Wing

Drone spending is on track to stretch to $98 billion worldwide in the next 10 years. About 12% of that should be for commercial purposes.

For example, farmers want to use drones for crop dusting and disease detection. Oil and gas companies want to use drones to inspect rigs and pipelines.

And news media companies, including NBC, The New York Times and Thomson Reuters are planning to test news-gathering drones in coming months.

So if you can’t beat ‘em, join ‘em. It turns out there are plenty of profit opportunities in drones.

How You Can Play It

There are a half dozen or so tradable drone stocks. Many of them are in the Robo-Stox Global Robotics & Automation ETF (Nasdaq: ROBO). The Robo-Stox ETF holds a basket of companies operating in robotics, high-tech automation and drones.

And if you look at the chart below, you can see that the Robo-Stox ETF is looking very bullish.

The ETF recently broke its downtrend. It pushed to the upside on high volume. That’s bullish.

The Robo-Stox ETF’s second-largest holding is AeroVironment (Nasdaq: AVAV). The company manufactures drones along with charging stations for electric vehicles. (Investment U’s Senior Research Analyst, Ryan Fitzwater, took a look at the stock back in January. You can check out his findings here.)

Another, smaller position is Elbit Systems (Nasdaq: ESLT), an Israeli drone manufacturer.

Sure, the Robo-Stox ETF has a lot of non-drone robot and automation stocks. But if drones are as big a trend as some say, this fund should be poised for liftoff. Just be aware that the expense ratio is rather high - at least for my blood - at 0.95%, or $95 per every $10,000 invested.

As always, be sure to do your own due diligence before buying anything.

All the best,


P.S. Drones are a hot-button issue for many people. But as defense expert PW Singer says, “At this point, it doesn’t really matter if you’re against this technology... it’s coming.” To help readers profit, Marc Lichtenfeld has produced a short video on drones and other cutting-edge technologies being implemented all over the globe. Click here to watch.

Good investing,

Sean Brodrick


Copyright © 1999 - 2015 by The Oxford Club, L.L.C All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Investment U, Attn: Member Services , 105 West Monument Street, Baltimore, MD 21201 Email:

Disclaimer: Investment U Disclaimer: Nothing published by Investment U should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Investment U should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Investment U Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules