If you’ve been around as long as I have, then you remember where you were on July 16, 1969.
That’s when Neil Armstrong became the first man to walk on the moon.
The effort took seven years from the time President John F. Kennedy first set out the seemingly far-fetched goal.
I’m bringing that up now to note that as we approach the 50th anniversary of that amazing achievement, the United States is about to get involved in another stretch goal involving the heavens
Just days ago, Vice President Mike Pence laid out plans for a U.S. Space Force that would be up and running by 2020.
“Space Force all the way!” President Donald Trump tweeted in support of the ambitious goal for what would be a sixth branch of the Pentagon.
This is a good move.
In fact, I’ve been advocating for this very approach for more than 30 years.
As has my father – who literally wrote the book on this topic.
In today’s briefing, I’ll tell you about all that.
Plus, I’ve found a market-crushing small-cap aerospace leader poised to profit handsomely from Trump’s military buildup in outer space…
It’s been absolutely crushing the market over the past few weeks.
“They Could Hit Us With a Knockout Blow”
I’ve been a big advocate of space technology literally for as long as I can remember.
Maybe it’s because I got to shake hands with U.S. astronaut John Glenn shortly after he became the first American to orbit Earth.
I got more into the field when my father became the senior military editor for Aviation Week & Space Technology, the bible of the industry, back in the early 1970s.
In 1983, my dad, Clarence A. Robinson Jr., began to advocate in the magazine for a new branch of the Pentagon devoted to space defense. Then as now, the Russians were working hard to gain a strategic advantage in outer space with satellite-to-satellite attacks, as well as assaults that could be directed at our critical ground communications.
My dad felt so strongly about the need for a Space Force that he even began writing a book about it, titled Battleground High. Unfortunately, for health reasons at age 85, he’s had to put the book on hold.
I spoke with him over the weekend, and he was just as excited as I am about Trump’s proposal.
“This is a terrific idea and long overdue,” he told me. “The Russians have been building up space-based weaponry for years, and now the Chinese have joined in the effort.
“If we let our adversaries get control of space, they could hit us with a knockout blow. This is something we really need so we have a fully integrated defense system.”
In other words, the effort here isn’t aimed at just having an outer-space presence for its own sake. Our global rivals have begun to develop more advanced space-based warfare and spying tools.
And many now believe that we need a more focused plan of attack to counter those threats…
A Catalyst as Big as Space Itself
Make no mistake, a new Space Force would be a big catalyst for space-based military and related technologies. Fact is, having a unit devoted to space is a big improvement over tucking it inside another agency like the Air Force.
Yes, I realize it won’t be easy.
The move requires the approval of Congress. But under Trump, Congress has been willing to boost military spending, including an $82 billion increase for fiscal 2018 to $716 billion.
To be sure, in the early days, funding will be light, perhaps only a few billion dollars a year. But if a Space Force will be on par with the other branches, as President Trump has suggested, we could expect similar spending over the long haul.
Bear in mind, the Air Force is the newest branch of the Pentagon and was formed in 1947. The idea was to separate it from the Army after World War II to make it a more effective fighting force.
Today, the agency gets about $170 billion in yearly funding. By that measure, military spending on space could surge by at least 1,000%.
But the impact could be far greater than that. Morgan Stanley said in a recent report that this could kick off a “$1 trillion investment opportunity,” as it comes on the heels of the coming era of commercial space travel.
The Trump administration wants to get started right away. The White House plans to form an elite squad of service members to fight wars in space. This would be known as the Space Operations Force and come from all parts of the military, like the existing Special Forces.
In addition, the Pentagon would have a U.S. Space Command that would be charged with developing doctrine and tactics for fighting wars in space.
And the administration plans to create an Assistant Secretary of Defense for Space, a position that would eventually become head of the independent Space Force.
Of course, as you’d expect, the nation’s major defense contractors will be lining up to grab a piece of the action. You can expect to hear Wall Street touting stocks like The Boeing Co. (NYSE: BA) and Lockheed Martin Corp. (NYSE: LMT) as “beneficiaries” of this huge move.
Don’t get me wrong. I’ve recommended both of these defense leaders for years – and continue to do so.
But I have also identified a small-cap aerospace leader that could soar 145% or more over the next year alone as a result of the Space Force…
The Small Company Trump’s Space Force Needs
One of the Space Force’s main missions will be dealing with the Russian and Chinese hypersonic weapon threats that are already challenging U.S. forces.
Both Russia and China have been defiantly testing these “superweapons” over the past few weeks – and even posting videos on them on YouTube.
These powerful new weapons can zigzag in any direction, dancing through the sky at an eye-popping 15,300 mph. That’s eight times faster than a cruise missile and 27 times faster than a jetliner’s cruising speed.
Defeating these weapons will be impossible without space-based assets.
“What was once peaceful and uncontested is now crowded and adversarial,” Vice President Pence said while laying out the administration’s Space Force vision. “Today, other nations are seeking to disrupt our space-based systems and challenge American supremacy in space as never before.”
We’ll be spending hundreds of billions fighting this arms race.
And all these weapon systems will require advanced, powerful rocket motors to drive them to these incredible heights and speeds. And that’s where the small, little-known company that I’ve identified comes in.
It recently successfully tested a rocket engine for a reusable spaceplane being developed by Boeing and the Pentagon’s DARPA lab. And it’s behind the engines driving NASA’s just launched $1.5 billion Parker Solar Probe aimed at exploring the sun.
In other words, This company is set to be a big player in the Trump Space Force’s drive to develop our own hypersonic missiles and delivery vehicles that could make current nuclear weapons obsolete.
And because it’s small – its market cap is just a fraction of the big boys’ – establishing a stake now would put you in a perfect position to realize maximum gains as it grows.
This company also been major supplier of a wide range of propulsion products to the U.S. Department of Defense since the 1940s.
We’re talking defense platforms that include strategic, tactical, and precision strike missiles, as well as missile defense and precision war-fighting systems.
And now, it is the leading-edge developer of the rocket-engine technology that will drive hypersonic weapons.
This firm’s involvement in space-based weaponry is so vital to U.S. security – and so potentially lucrative for tech investors – that I have prepared a special presentation on it.
This presentation will give you the details you need to know. In it, I show you how and why this company’s stock could easily give us gains of 145% in just the next 12 months… and why it’s facing a 3,877% revenue surge in the near future.
To watch it, simply click here.
Cheers and good investing,
Michael A. Robinson