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Cuba Just Got 300 Drones Targeting US — Buy These 5 Stocks Before War Starts

Summary

Felix's main thesis is that the US is currently vulnerable to low-flying, inexpensive drone threats from Cuba, which has stockpiled Russian and Iranian technology. He believes Washington will inevitably fill this defense gap by issuing massive contracts to specialized companies. Felix warns against 'headline chasing'—buying after the news breaks—and suggests positioning now while many defense stocks are down 30% to 40%.

He categorizes investments into three tiers: Tier 1 consists of conservative, high-quality companies with stable balance sheets; Tier 2 includes more aggressive stocks with direct drone exposure; and Tier 3 covers speculative micro-caps that function like lottery tickets. Felix emphasizes the importance of following money flows and technical indicators like the RSI and moving averages rather than just emotional reactions to news.

XAR: A US-focused defense ETF. Felix notes it has a 'heartbeat' pattern with higher lows. He suggests waiting for a breakout above recent highs or specifically $200 for a higher probability entry.
AXON: Known for body cameras, they acquired Dedrone. Their counter-drone division grew 300% last year. Felix likes it as a way to get theme exposure with a stable core business.
NOC: A contrarian Tier 1 pick. It is down 30% from highs and appears oversold on the RSI, though Felix is waiting for proof of buying volume.
LHX: Specializes in electronic warfare and sensors. Felix suggests a price entry point of $320 before considering a buy.
LMT: An ultra-conservative play with a 2.6% dividend. Felix notes it is unlikely to double as drone defense is a tiny part of their massive business.
KTOS: A Tier 2 stock with a $2 billion backlog. Despite being down 60% this year, Felix is waiting for a rebound from its current 'heartbeat' pattern.
ELBT: An Israeli company with combat-validated tech. Felix is watching for a rebound near its long-term trend line.
RCAT: A speculative Tier 3 micro-cap. It is on the Pentagon's approved list, making it a high-risk/high-reward 'lottery ticket.'

Mentioned Stocks

XAR
Sentiment: HOLDAction: RECOMMENDED

Reasoning: Felix views this as a conservative entry into the sector. He notes a pattern of higher lows but wants to see a breakout above $200 to confirm momentum before entering.

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AXON
Sentiment: BUYAction: RECOMMENDED

Reasoning: The company has a stable core business in police tech and a drone defense division that grew 300% recently. Felix sees it as a quality way to play the theme with lower risk.

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NOC
Sentiment: HOLDAction: RECOMMENDED

Reasoning: Felix considers this a contrarian pick because it is 30% down from its highs and oversold on the RSI, but he is waiting for price action to confirm a bottom.

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LHX
Sentiment: HOLDAction: RECOMMENDED

Reasoning: Felix likes their specialization in sensors and electronic warfare. He explicitly mentions waiting for a price target of $320 before buying.

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LMT
Sentiment: HOLDAction: RECOMMENDED

Reasoning: While a quality company with a good dividend, Felix notes that drone defense is too small a portion of their revenue to significantly drive the stock price.

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KTOS
Sentiment: HOLDAction: RECOMMENDED

Reasoning: A more aggressive Tier 2 play with a strong backlog. Felix points out it is heavily oversold (down 60%), but he is waiting for a confirmed rebound.

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ELBT
Sentiment: HOLDAction: RECOMMENDED

Reasoning: Felix highlights their combat-validated systems and potential entry point near the long-term trend line, pending a visible rebound.

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RCAT
Sentiment: HOLDAction: RECOMMENDED

Reasoning: A high-risk micro-cap on the Pentagon's approved list. Felix treats this as a speculative 'lottery ticket' that could 5x or go to zero.

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