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SPC Premium: America's "New Arms Race"
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SPC Premium: America's "New Arms Race"

And with its largest contract ever, this tiny company is challenging industry giants ...

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Stock Picker's Corner
Jan 30, 2025
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SPC Premium: America's "New Arms Race"
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A rocket flying in space

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Kratos' Erinyes hypersonic test bed took its first flight last summer, reaching hypersonic speeds above Mach 5. (Source: Kratos)

If you want a “checklist” of the storylines that are driving the New Cold War, it’s going to look something like this:

  • Drones — Self-piloting vehicles that fly through the air, move along the ground, sail atop the waves or navigate the oceans’ depths.

  • Artificial Intelligence (AI) — The hottest story of the last two years … and the hottest story of the last few days.

  • Cyber Tech (Offense and Defense) — One differentiator from the first Cold War is that we’ve added two new “battlegrounds” — cyberspace … and outer space. In cyberwarfare, “digital” weapons take the place of bullets, artillery shells, missiles and bombs, making computer systems or so-called “critical infrastructure” like power grids or water systems the targets. And what can be targeted must also be protected, meaning offense and defense are both part of this realm.

  • Space-Based Weapons — Anti-satellite weapons, new surveillance technologies and new “delivery systems” are the story here. Which leads to the next storyline …

  • Hypersonics — Here we’re talking about missiles and warheads that can travel at speeds greater than Mach 5. There are scramjet-powered “cruise missiles,” new types of aircraft (manned and unmanned) and something called a “hypersonic glide vehicle” (HGV), in essence, a super-maneuverable warhead that renders current interceptor systems obsolete.

  • A2/AD — That’s not a robot from the Star Wars series; it’s an acronym that stands for “Anti-Access/Area Denial — in essence, strategies and technologies that limit (or prohibit) your enemy’s ability to operate where you don’t want them to.

  • And Directed-Energy Weapons (DEWs) — Weapons systems that (instead of projectiles) use concentrated bursts of laser, microwave or particle-beam energy to disrupt, damage or destroy drones, missiles, satellites, radar systems, power grids or communications networks.

There you have it: Seven New Cold War storylines. And this SPC Premium stock — which has already zoomed — is a player in almost all of them.

Shares have soared 74% from their initial price of $18.76 since we brought it your way early last year.

And the Pentagon just gave us more than a billion reasons to stick with it …

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