The primary market-related headlines are about interest rates rising as bonds weaken, a more hawkish Fed, and a stalemate between Russia and Ukraine.
That doesn't seem to be news that would attract more market exposure, but the positive price action at the start of the week was enough to pull some cash off the sidelines.
“The thought process seems to be 'What if this market keeps on running?' and 'What if the bad news is already fully discounted?,' Deporre wrote recently on Real Money.
Given that, "one name I've mentioned quite frequently is Ondas Holdings ONDS,” Deporre wrote. “The company announced earnings today that were OK, but the story here is ongoing momentum.”
This is one of the few plays for industrial drones or, as Deporre likes to call it, Drones as a Service (DaaS).
“A division of Ondas is developing unmanned drones that will be used by oil companies and railroads to monitor oil fields,” he added. “That is the gist of it, and the story is gaining some traction.”
Testing Equipment
Another name Rev Shark added this week is Aehr Test Systems (AEHR).
“This one was hot back in the fall as a supplier of test equipment for semiconductors used in EV manufacturing,” he noted. “The company has earnings coming up on March 31 but has announced some contract news and has a good backlog of business. For the fiscal year ending May 2023, the current EPS estimate is $0.69.”
To Deporre, it’s refreshing to see so many of the badly beaten up small-caps finally come to life, even though it's a tad frothy now and tough to chase.
“The good news is that there should be solid support on pullbacks,” he added.
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