Mineral Mappers

Over the past few years, the marijuana industry has seen explosive growth.

A new class of “pot stocks” has emerged that is promising extraordinary returns to investors in the years to come.

As the legalization of marijuana continues to gain support, investors could see pot stocks rip into the stratosphere.

Minting brand-new millionaires in the years to come…

But I’ve observed another MASSIVE shift taking place in an unusual industry…

I’m talking about aerospace and defense. At first glance, you might not think these two industries are related. But you’d be wrong.

As it turns out, government agencies, like the FBI and Drug Enforcement Agency have actually been using satellite imagery to uncover illegal marijuana operations.

That’s right. These high-resolution satellites can actually zoom in on marijuana grow houses from way up in space….

Right down to a single plant.

Of course, that’s not all the satellite imagery is used for. It’s also being used for something much more interesting: mining.

You see, minerals and metals mining is a highly intensive operation.

Let’s say you’d like to buy a piece of land and mine for oil or gold. You’d have to survey the land… take soil deposits… and finally start digging a hole in the hopes of getting lucky. It’s called “mineral mapping.” And the images are out of this world!

And when – not if – marijuana is fully legalized, industry growers will be able to use this same mineral mapping technology to uncover the best soil regions for growing, monitoring crop inventories and conducting damage assessment… all from space!

By using these sophisticated satellites, all that grunt work is removed.

The satellite industry is one of the fastest-growing new markets. In fact, it’s blowing up at 11% a year, swelling to an incredible $5 BILLION. This industry is incredible, and I’ve found three companies that are absolutely CRUSHING this market space.

These companies have deep connections and decades of experience within the intelligence community… oil and gas industry… navigation… map making… you name it.

I’m very excited about these three opportunities because I believe this hidden trend is about to make savvy investors very wealthy. I’ve put together the details on each of these opportunities below.

The profit potential they’ll add to your portfolio is simply too much to pass by. So I’m asking that you get in on these three stocks right now.

Three Satellite Imaging Stocks Set to Blast Off!

Mineral Miners Play No. 1: Maxar Technologies (NYSE: MAXR)

My first recommendation is especially exciting…

Maxar Technologies (NYSE: MAXR) was founded in 1969 and is based in Vancouver, Canada.

Maxar Technologies is a communications and information company that provides operational solutions to commercial and government organizations worldwide. The company has a communications segment and a surveillance and intelligence segment.

What makes this company so interesting is its portfolio of companies. They are some of the top companies in the satellite communications business…

• SSL Inc. is a global leader in multiple space technologies. It provides advanced systems for communications, exploration and data gathering.
• Radiant Solutions provides multisource data collection and geospatial information enrichment and analytic capabilities.
• MDA Inc. is a global communications and information company focused on the surveillance and intelligence sectors. And MDA recently acquired one of the most significant players in the satellite communications field: DigitalGlobe. (DigitalGlobe’s accomplishments are so important to the satellite communications field that it was inducted into the Space Technology Hall of Fame in 2011.)

Maxar Technologies’ customers are leaders in defense, intelligence, oil and gas, infrastructure, navigation, environmental work, and mapmaking. NASA, the Department of Defense’s National Geospatial-Intelligence Agency and even the Amazon Conservation Team are among Maxar’s happy customers.

But its customers are not just government agencies… Maxar has commercial customers as well.

Are you using Google Maps or Google Earth? If so, you now have Maxar to thank. Much of the high-resolution imagery used in those applications is provided by DigitalGlobe. And with such a wide usage of its imagery, it’s able to secure a steadily growing stream of revenues…

Over the past nine years, Maxar’s revenues have grown at a solid pace of 19.3% per year. That’s more than three times the average growth rate of its industry peers…

Its gross profits shot up too, up 128% last year – from $376.7 million to $861 million. Unfortunately, due to impairment losses from downsizing some of its business segments, the company’s net income was in the red.

However, I view the impairment losses as one-time events and feel the company is back on track this year. Revenue will be less than it was last year, but the company should move back into the black.

Right now, Maxar’s price-to-book is 0.42, compared with an industry average of 6.3. This is an opportunity to grab phenomenal growth at a 93% discount.

Action to Take: Buy shares of Maxar Technologies (NYSE: MAXR) at the market. Use a 25% trailing stop to protect your principal and your profits.

Mineral Miners Play No. 2: Northrop Grumman (NYSE: NOC)

My second pick is a major industry leader in its own right.

Northrop Grumman (NYSE: NOC) started out in 1939 as a military aircraft manufacturer. It’s still doing that, but the company has evolved into much more.

Today, it is a leader in aerospace systems, military systems and technology services. It provides a broad range of products for thousands of U.S. and global customers.

The company has become one of the most well-known in the world. Over the years it has successfully integrated more than 20 marquee companies into an enterprise that now covers the entire spectrum of military services.

Recently, the company made an aggressive move into unmanned rockets, pilotless aircrafts and drones with the $9.2 billion purchase of Orbital ATK.

The crown jewel for Northrop is Orbital’s huge footprint in the satellite industry. Orbital is a major builder of satellites and related subsystems with more than 225 space systems and 800 space components delivered or in production. It is also the leading producer of solid rocket propulsion systems. It has more than 16,000 motors built for strategic, tactical and space applications.

This acquisition makes Northrop one of the premier industry players and I expect Orbital’s product lines to keep Northrop’s top and bottom lines growing for years to come. Here’s why…

Orbital paved the way for the entire satellite imaging industry, making mapping applications like Google Maps and Google Earth possible. It too is a key player in the global aerospace and defense industry. Building and supplying products for both government agencies and large private contractors around the globe. It generated nearly $5 billion in revenue last year and has a contract backlog of about $15 billion.

Its products span from aircrafts and propulsion systems to tactical missiles and weapons. Of course, it also builds satellites.

Orbital is a major builder of satellites and related subsystems, with more than 225 space systems and 800 space components delivered or in production. It is also the leading producer of solid rocket propulsion systems. It has more than 16,000 motors built for strategic, tactical and space applications.

Much of Orbital’s products are used for defense and scientific research. In fact, Orbital retains many key contracts with NASA to produce component parts and equipment for space launches.

Orbital’s unmanned resupply spacecraft Cygnus has been used by NASA to complete cargo resupply missions to the International Space Station.

Northrop management has also proven itself capable of improving shareholder value. The company’s return on equity sits at an impressive 32% – higher than even the S&P 500’s average return on equity of 11%.

The company’s operating and profit margins – 13.97% and 10.73%, respectively – are looking good as well. The company has more than $1.6 billion in cash.

Overall, Northrop is a solid and growing company. 2018 sales totaled more than $30 billion. Cash from operations was $3.8 billion, and free cash flow was $2.5 billion. The company expects 2019 sales of approximately $34 billion and earnings per share of $18.53.

As an added bonus for shareholders, the board of directors raised the quarterly dividend 10% in January to $1.20 per share, or $4.80 annually. At current prices, that’s a 1.78% dividend yield.

Action to Take: Buy shares of Northrop Grumman (NYSE: NOC) at the market. Use a 25% trailing stop to protect your principal and your profits.

Mineral Miners Play No. 3: Intelsat (NYSE: I)

My third recommendation is another industry leader.

Intelsat (NYSE: I) is the largest satellite services operator in the world.

If you have a cellphone or television, you’re almost certainly using its technology constantly.

Why? Because its communications network covers 99% of the world’s populated areas. And it delivers more than 5,600 channels (including 900 in high definition) directly into the homes of billions of people.

The company operates more satellite capacity, holds more orbital location rights and serves more commercial customers than any other commercial satellite operator. It has a contract backlog of roughly $8.1 billion.

Intelsat’s most recent satellite launch is its Intelsat 37e, which replaced Intelsat 901 – a satellite that provides C-band coverage in the Atlantic Ocean region and Ku-band coverage in Europe.

The C-band designation refers to microwave frequencies between 4 and 6 gigahertz, while Ku-band frequencies are between 12 and 18 gigahertz. Both bands are used for satellite communications, but the overload of C-bands led to the rise in usage of Ku-bands. Ku-band frequencies are used exclusively for satellite communication systems, such as NASA’s Tracking and Data Relay Satellite, which is used for the International Space Station’s communications.

While Intelsat’s satellites play a crucial role in our global satellite communications systems, the company has been recently pressured by upstarts that have drawn the attention of investors.

But I see Intelsat as a great value play right now.

The company brings in more than half a billion dollars in revenues per quarter. Last year, Intelsat recorded $2.16 billion in revenues and $1.83 billion in gross profits. The operating margin averaged 43%.

It’s trading at a price-to-sales ratio of less than 1.2, just below an average of 1.5 among its industry competitors. On a price-to-sales basis, the stock is trading at an 87% discount.

The point is that, this stock is trading relatively cheap… yet its long-term value makes it an underappreciated gem in a fast-growing industry.

Action to Take: Buy shares of Intelsat (NYSE: I) at the market. Use a 25% trailing stop to protect your principal and your profits.

I’m especially excited about these plays, and you should be too.

As I pointed out, federal agencies are quickly adopting this technology to investigate illegal pot-growing operations throughout the country. But once marijuana is legalized – as the changing social tides suggest – then the demand will come squarely from the minerals and metals mining industry.

High-resolution satellite imaging is perfectly suited for both energy and agricultural industries and can be used to map large swaths of land in search of valuable mineral deposits, precious metals and soil regions.

In fact, satellite imaging technology is now at a point where it can be used to develop 3D images from a 2D analysis of the land!

This technology makes the minerals and metals mining process vastly more efficient. And it will save the marijuana industry both money and time too.