Tuesday, July 21, 2020

Investor Ideas #Potcasts, #Cannabis News and #Stocks on the Move; Episode 444 (CSE: $DOSE.C) (OTC: $MJNA) (OTCQB: $AXIM)(CSE: $XCX.C)


Investor Ideas #Potcasts, #Cannabis News and #Stocks on the Move; Episode 444 (CSE: $DOSE.C) (OTC: $MJNA) (OTCQB: $AXIM)(CSE: $XCX.C)


Delta, Kelowna, BC, July 21, 2020 (Investorideas.com Newswire) www.Investorideas.com, a global news source covering leading sectors including marijuana and hemp stocks and its potcast site, www.potcasts.ca  release today’s podcast edition of  cannabis news and stocks to watch plus insight from thought leaders and experts.

Listen to the podcast:





Today’s podcast overview/transcript:

Good afternoon and welcome to another episode of Investorideas.com "Potcast" featuring cannabis news, stocks to watch as well as insights from thought leaders and experts.

In today’s podcast we look at a few public and private company announcements.

Rapid Dose Therapeutics Corp. (CSE: DOSE), a Canadian Life Sciences company focused on innovative drug and active ingredient delivery solutions, announced that it has begun COVID-19 vaccine research in conjunction with McMaster University and the team lead by Drs. Alex Adronov, James Mahony, and Mark Larché. The federally-funded project tests the use of QuickStrip™ for administering vaccines orally as a convenient and safe alternative to injection with needles, the currently accepted delivery format for most vaccines.

Dr. Adronov is a recognized Canadian expert in synthetic polymer chemistry and the development of novel polymer architectures, Dr. Mahony has extensive experience in virology and vaccine development, and Dr. Larché is an immunologist with expertise in vaccine research geared toward treatment of common allergies. The combined expertise of this research team will enable development and evaluation of oral vaccine delivery strategies.
Jason Lewis, RDT SVP said “RDT is focused on novel research through collaboration with the experts at McMaster. We see QuickStrip™, oral mucosa thin film delivery, as an efficient solution for distributing vaccines globally. Experts believe that antigens to COVID and other viruses can be delivered sublingually, a much easier and less expensive process than the current single or multidose vial methods.  Imagine the significance of creating a vaccine that can be sent in an envelope, by mail.”

“Our combined experience indicates that this is very feasible” said Dr. Adronov a recognized polymer expert leading the research project. “Our past collaborations with RDT in developing polymeric delivery innovations have resulted in solutions we are proud of, and continue to be involved with. Globally, we are seeing the development of many vaccines that we believe can be applied using sublingual delivery. Our project focuses on producing a polymer strip that delivers viral antigens by a transmucosal approach rather than injection. This funding will allow us to quickly get started, and we expect to generate positive results in the near future.”

Mark Upsdell, RDT CEO, said “The current COVID situation requires everyone to think outside of the box as to how we might deliver safe, effective and timely solutions for combating COVID-19 and other viruses that require serum-based defenses. RDT remains committed to its research and innovation strategy which is highlighted now by our work on the COVID-19 project’s unique delivery format. RDT provides scale-up testing and bench strength support for the McMaster research team in the race to provide an effective product that can be produced and delivered on a world-wide scale. A successful outcome of this project and its application with our QuickStrip™ delivery system will create exciting new opportunities for RDT.”

Medical Marijuana, Inc. (OTC: MJNA), the first-ever publicly traded cannabis company in the United States that launched the world's first-ever cannabis-derived nutraceutical products, brands and supply chain, announced today that its investment company AXIM® Biotechnologies, Inc. (OTCQB: AXIM) has announced the development of a rapid diagnostic test measuring levels of functional neutralizing antibodies that are believed to prevent SARS-CoV-2 (COVID-19) from infection.

Medical Marijuana, Inc. CEO Dr. Stuart Titus commented: “Our portfolio is proud to see the innovation that AXIM has showcased over the past few months and we are optimistic that this test could help make a difference in achieving our end-goal of overcoming this virus. Personally, I think that this kind of ingenuity will set us apart from our competitors and allow us to continue to grow the other facets of our business.”

Unlike currently available COVID-19 tests that detect an antibody response to the virus, AXIM’s rapid 10-minute test measures a specific subpopulation of antibodies to block the virus from attacking a person’s body. While there are expensive, time-consuming laboratory tests that measure neutralizing antibodies, this test could be offered with easier convenience, lower cost and much faster -- results in 10 minutes -- than any other test on the market.

AXIM’s test could also help ensure that vaccines elicit high levels of neutralizing antibodies. When a vaccine is available, manufacturers can employ this test to evaluate its effectiveness in vaccine recipients.

“We have succeeded at creating a test that is cost-efficient, accurate and fast – hopefully serving as an ‘Immunity Passport™’ for vaccine developers as they begin larger Phase II and III clinical trials,” AXIM® Biotech CEO John W. Huemoeller II said.

AXIM has filed a Pre-Emergency Use Authorization and is compiling the necessary data from numerous tests recently completed that are needed to apply for an EUA from the FDA.  AXIM makes clear that while the Company intends to file an EUA with the U.S. FDA, the U.S. FDA has not yet approved the Company’s diagnostic test and there is no guarantee that any EUA once filed will be approved.

AMP German Cannabis Group Inc. (CSE: XCXannounced that it has placed two orders for bulk and finished EU-GMP medical cannabis flower from a Canadian Licensed Producer of medical cannabis. AMP will be purchasing and importing to Germany, 50 kilograms of EU-GMP medical cannabis in September 2020 and a further 100 kilograms during January/February 2021. AMP and the Canadian LP plan to expand the supply agreement for monthly large volume purchases of medical cannabis as well as extracts.

The Canadian LP operates an indoor growing and processing facility in Canada and was already EU-GMP certified by German authorities earlier this year.

Dr. Stefan Feuerstein, President of AMP, commented, "We are seeing a stronger than anticipated demand for medical cannabis in the German marketplace and Canada is one of a few credible suppliers to Germany in the short term. Demand from German pharmacies is so high that AMP will be adding pharmaceutical distributors across Germany that focuses solely on medical cannabis in the upcoming weeks. Our goal is to become a major importer to Germany by the end of 2021"

NATIONS Cannabis, an emerging Indigenous cannabis cultivation company and the Association of Canadian Cannabis Retailers (ACCRES) share a common vision for a regulated industry that ensures a safe supply and safe access to high quality products  – and have formalized their alliance with the signing of a memorandum of understanding.

The MOU is the perfect marriage whereby NATIONS will provide a farm-to-store, steady supply of cannabis products for the 26 members of the Association, representing 65 retail stores. It also presents ACCRES with an opportunity to incorporate a truly Indigenous brand into its fold with an ability to cultivate new strains where market demands change. The projected value of the agreement is $28 million in the first year, and $96 million by year three.

“The partnership is pivotal in the evolution of NATIONS”, says the company’s co-founder and Executive Chairman, Wes Sam. “We are unaware of any such agreement involving an Indigenous production company in this province, and ACCRES has identified our company as the first it has chosen to collaborate with in this manner.”

From the perspective of ACCRES, the deal is a win-win. “We believe NATIONS will become the premier and earliest Indigenous cannabis producer in BC, “said Association Interim President Mathew Greenwood. “They have a product that will allow our retailers to differentiate themselves from others in the marketplace. Furthermore, partnering with a company that gives an authentic voice to Indigenous Peoples is an important aspect of this collaboration and will be exciting for consumers.”
As a late stage applicant in the federal licensing approval process, NATIONS’ momentum was halted this spring amidst the COVID-19 pandemic and construction of its primary cultivation facility was paused. Once work resumes, the process of seeking and securing a federal cultivation and processing license will also continue.

“As investors in the NATIONS’ project, we believe that the Agreement with ACCRES represents real Indigenous economic reconciliation and participation in the Cannabis industry,” said Chief Dan George, of the Burns Lake Band (Ts’il Kaz Koh First Nation), adding, “We are excited to be part of this unique journey with NATIONS and their partners.”
Upon licensing approval by Health Canada, NATIONS hopes to actively begin the process of facilitating a direct market arrangement with ACCRES and its respective retailers. Licensing approval will also open the door to a potential producer supply agreement through BC’s Liquor Distribution Branch.

For more information about the Association of Canadian Cannabis Retailers, please visit: https://accres.ca/

For more information about NATIONS, please visit: https://www.nationscannabis.ca

Investor ideas reminds all listeners to read our disclaimers and disclosures on the Investorideas.com website and that this podcast is not an endorsement to buy products or services or securities. Investors are reminded all investment involves risk and possible loss of investment.

Learn more about our cannabis podcasts at https://www.investorideas.com/Audio/Potcasts.asp


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About Investorideas.com - News that Inspires Big Investing Ideas
Investorideas.com is a recognized news source publishing third party news, research and original financial content. Learn about investing in stocks and sector trends with our news alerts, articles, podcasts and videos, looking at cannabis, crypto, AI and IoT, mining, sports biotech, water, renewable energy and more. Investor Idea’s original branded content includes the following podcasts and columns : Crypto Corner , Play by Play sports and stock news column, Investor Ideas Potcasts Cannabis News and Stocks on the Move podcast and column,  Cleantech and Climate Change , Exploring Mining  the AI Eye .
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.
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#ExploringMining #Podcast Episode 85 – #Mining #Stock News from (NYSE: $IAG) (TSXV: $LIO.V) (TSXV: $OCG.V) (TSXV: $BME.V)


#ExploringMining #Podcast Episode 85 – #Mining #Stock News from (NYSE: $IAG) (TSXV: $LIO.V) (TSXV: $OCG.V) (TSXV: $BME.V)


Point Roberts WA, Delta BC, July 21, 2020 Investorideas.com, a global investor news source covering mining and metals stocks releases today’s edition of Exploring Mining Podcast, featuring stock news from TSX, TSXV ,CSE, ASX, NASDAQ, NYSE  companies plus interviews with CEO's and leading experts.

Listen to the podcast:



IAMGOLD Corporation (NYSE:IAG) is proceeding with the construction of the Côté Gold Project in northern Ontario, Canada. According to the press release, this allows construction at the project “in Q3 2020 with activities ramping up into Q4 2020.” Gordon Stothart, President and CEO of IAMGOLD, commented:

"The Côté Gold Project is transformational to the future of IAMGOLD. At a gold price of $1,700, Côté's expected NPV (on a 100% basis) is over $2 billion, with a 22.4% IRR. The Project is anticipated to generate over 1,000 jobs during construction, 450 jobs during operations, C$5 billion in wages and more than C$10 billion in GDP over its lifespan. Côté is a world-class deposit located in Canada, with estimated contained gold reserves of over 7 million ounces and exploration potential. Today's construction decision for the Project positions the Company well for the future by reducing overall operating costs (per ounce of gold), increasing total production capacity, increasing the number of operating mines and creating greater balance in our geographic diversity.”

Lion One Metals Limited (TSXV:LIO) has announced that, 3 km northeast of its Tuvatu resource, its has discovered Tuvatu style lodes at Banana Creek. Banana Creek is described in the press release as “a new, high-priority greenfields target situated within Lion One's recently granted Navilawa tenement, part of its 100% controlled Tuvatu alkaline gold project, Fiji.” Quinton Hennigh, technical advisor to Lion One, explained:

"Crews in Fiji are finding new outcropping lodes daily at Banana Creek and surrounding areas as they open up roadcuts and trenches. Many of these are generating high-grade assays and appear similar to gold lodes seen at Tuvatu nearly 3 km to the southwest. We are now seeing a steady stream of assays come in from these new areas and we expect many more over [the] coming months. Drill targets are quickly emerging at Navilawa. Two holes at Tuvatu West appear to have encountered high level splay structures, possibly above a deeper feeder structure. We plan more drilling at a deeper level in this area later this year. Meanwhile our Tuvatu step-out and feeder drill program continues. This is shaping up to be a busy, exciting year."

Outcrop Gold Corp. (TSXV:OCG) has announced “a significant increase in the land position surrounding and along trend from the high-grade silver-gold Santa Ana project, including the consolidation of multiple regional scale, parallel silver-gold belts in the Mariquita District, Colombia.” Outcrop CEO Joe Hebert said:

"Outcrop is elated to make an acquisition of this quality and scale. Colombia is one of the few exploration jurisdictions in Latin America where a company can consolidate this large of an area of high-grade veins with almost no modern exploration but abundant artisan mining. Controlling numerous vein systems that extend for tens of kilometres will position us for a world-class high-grade discovery."

Barsele Minerals Corp. (TSXV:BME) has shared an operational update relating to ongoing exploration activities within the Barsele Gold-VMS Project area in Sweden. The press release indicates that coring was initiated on July 14th and that: [drilling] “will test Regional Orogenic Gold and Volcanogenic Massive Sulphide targets,” and “will test for continuity and extensions of higher-grade intercepts within the Avan and Central zones.”

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Research mining stocks at Investorideas.com with our mining stocks directory at Investorideas.com https://www.investorideas.com/Gold_Stocks/Stocks_List.asp 

About Investorideas.com - News that Inspires Big Investing Ideas Investorideas.com is a recognized news source publishing third party news, research and original financial content. Learn about investing in stocks and sector trends with our news alerts, articles, podcasts and videos, looking at cannabis, crypto, AI and IoT, mining, sports biotech, water, renewable energy and more. Investor Idea’s original branded content includes the following podcasts and columns : Crypto Corner , Play by Play sports and stock news column, Investor Ideas Potcasts Cannabis News and Stocks on the Move podcast and column,  Cleantech and Climate Change , Exploring Mining  the AI Eye .

Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.
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#TechStocks in the News: iQSTEL (OTC: $IQST) Announces June 2020 Revenues Jump 190%, Q2 Revenues Surpasses $11 Million; @IQstel


#TechStocks in the News: iQSTEL (OTC: $IQST) Announces June 2020 Revenues Jump 190%, Q2 Revenues Surpasses $11 Million; @IQstel

NEW YORK, NY– July 21, 2020 - (Investorideas.com Newswire)- Breaking Tech/ Telecom  News-  iQSTEL Inc. (OTC: IQST),, a leading-edge 21st Century Enhanced Telecommunications Service Provider, just closed out Q2 2020 with fantastic revenue figures.


The preliminary breakdown is as follows:
·        June 2020 revenues: over $4.2 million, an increase surpassing 190% as compared to June 2019’s $1.44 million
·        Q2 revenues: over $11 million, projections of around $9 million shattered
·        SMS operations represent 65% of revenue stream
·        60% of revenue is prepaid revenue.

The complete Q2 financials along with a more in-depth summary will be posted once the accountants have completed the 10Q file.

“We appreciate our shareholders’ patience during the past few months as we worked to reduce our convertible debt and completed the various mergers and acquisitions. The results so far speak for themselves. We also thank the entire iQSTEL family for their dedication and belief in our business model. Q3 and Q4 are lining up to be very exciting and we look forward to providing updates as we reach new milestones” commented Mr. Iglesias, iQSTEL Inc’s CEO.

About iQSTEL Inc.:
iQSTEL Inc (OTC: IQST) 
www.iQSTEL.com  is a US-based publicly listed company offering leading-edge 21st Century Enhanced Telecommunications Services with a focus on a wide range of cloud-based enhanced services to the Tier-1 and Tier-2 carriers, corporate, enterprise, as well as the retail market. iQSTEL through its subsidiaries Etelix, SwissLink, QGlobal SMS, SMSDirectos, IoT Labs, IoT Smart Gas Platform, itsBchain offers a "one-stop-shopping” for international and domestic VoIP services, IP-PBX services, SMS exchange for A2P and P2P, OmniChannel Marketing, Internet of Things (IoT) applications (IoT Smart Gas Platform), 4G & 5G international infrastructure connectivity, as well as blockchain-based platforms: Mobile Number Portability Application (MNPA) and Settlement & Payments Marketplace for VoIP, SMS and Data.

About Etelix.com USA, LLC:
Etelix.com USA LLC www.etelix.com is a wholly owned subsidiary of iQSTEL Inc. Etelix.com USA, LLC is a Miami, Florida-based international telecom carrier founded in 2008 that provides telecom and technology solutions worldwide, with commercial presence in North America, Latin America, and Europe. Enabled by its 214-license granted by the Federal Communications Commission (FCC), Etelix provides International Long-Distance voice services for Telecommunications Operators (ILD Wholesale), and Submarine Fiber Optic Network capacity for internet (4G and 5G). Etelix was founded in 2008 and has been profitable since inception.

About SwissLink Carrier AG:
SwissLink Carrier AG www.swisslink-carrier.com is a 51% owned subsidiary of iQSTEL Inc. SwissLink Carrier AG is a Switzerland based international Telecommunications Carrier founded in 2015 providing international VoIP connectivity worldwide, with commercial presence in Europe, CIS and Latin America. SwissLink Carrier AG is a Swiss licensed Operator, having a domestic Interconnect with Swisscom, allowing their international Carrier Customers direct terminations via SwissLink into all Switzerland Fix & Mobile Networks. Since the takeover from Swissphone in November 2018 and the rename into SwissLink, they operate on a profitable level.

About QGlobal SMS LLC.:
QGlobal SMS LLC www.qglobalsms.com is a 51% owned subsidiary of iQSTEL Inc. QGlobal SMS is a USA based company and a commercial brand founded in 2020 specialized in international and domestic SMS termination, with emphasis on the Applications to Person (A2P) and Person to Person (P2P) for Wholesale Carrier Market and Corporate Market in US. QGlobal SMS has commercial presence in US, Mexico, Latin America, EMEA (Europe, Middle East, Asia) and Africa, through our SMS service providers based in Austin, TX and Miami, FL Our Austin-based SMS service provider is specialized in the SMS traffic exchange between US and Mexico, and our Miami-based SMS service provider is focused in the development of Latin America and the rest of the word. QGlobal SMS has robust international interconnection with Tier1 SMS Aggregators, guarantying its customers high quality and low termination rates, over more than 100 countries worldwide.

About Alcyon Cloud SMS S.A.S (Commercial Brand SMSDirectos.com ):
Alcyon Cloud SMS S.A.S. (Commercial Brand SMSDirectos.com), is a whole subsidiary of QGlobal SMS, a Colombian-based Application and Content Provider. Alcyon Cloud SMS (SMSDirectos.com) is registered with the Secretary of Information and Communication Technology (ICT) in Colombia, offering services to government, enterprises, small and medium business, as well as end-users. Using SMSDirectos’ existing network, they plan to expand services from SMS to offer omnichannel products and services such as: SMS, Emails, RCS (Rich Communications Services), Social Media Channels (Whats App, Messenger, etc), WebRTC (Web Real-Time Communication), VoIP (IP-PBX, SIP Trunking) ChatBots (Artificial Intelligence Based), SMS to Email, and Email to SMS.

About IoT Labs MX SAPI:
IoT Labs MX SAPI www.iotlabs.mx , a subsidiary of iQSTEL Inc, is an Internet of Things (IoT) Mexican technology development company, creator of the “IoT Smart Gas” Platform and Application. The IoT Smart Gas platform www.iotsmartgas.com consists of an IoT field device installed on the LP gas tank (adaptable to virtually any gas or liquid storage tank) and, thanks to the Internet of Things (IoT) technology via Sigfox or GSM network connectivity, allows remote managed and improved logistic processes of refilling, usage tracking and tank monitoring in real-time by the Smart Gas mobile app. The new GSM tracking feature allows for mobile use including ground, air, and sea tank monitoring.

About itsBchain LLC.:
itsBchain LLC www.itsBchain.com is a 75% owned subsidiary of iQSTEL Inc. itsBchain is a blockchain technology developer and solution provider, with a strong focus on the telecom sector.  The company is the final stage of development of a series of blockchain solutions aimed at using the blockchain ledger and smart contract solutions to enable more efficiency, quickness in execution and fraud-prevention in the telco industry.  Specifically, the company is developing a solution that will enable users and carriers to transfer mobile phone numbers with just a few clicks, allowing users and carriers the ability to transfer retail users from one mobile carrier to another instantly.  Additionally, the company is finalizing a carrier-grade marketplace solution to procure payments between carriers for cross-traffic of VoIP, SMS and data realtime as traffic is crossed between carriers.  This marketplace will allow for instant payment settlement as well as the prevention of fraud between carriers.

Safe Harbor Statement: Statements in this news release may be "forward-looking statements". Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or other future events or conditions. These statements are based on current expectations, estimates and projections about our business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and are likely to, differ materially from what is expressed or forecasted in forward-looking statements due to numerous factors. Any forward-looking statements speak only as of the date of this news release and iQSTEL Inc. undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this news release.

iQSTEL Inc.
IR US Phone: 646-740-0907, IR Email: investors@iqstel.com
Source: iQSTEL Inc. and its subsidiaries:

Investorideas.com Paid news Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions. Disclosure : this news release featuring iQSTEL Inc. (OTC: IQST) is a paid for news release on Investorideas.com  https://www.investorideas.com/News-Upload/
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HomelandDefenseStocks.com Q&A Interview with Scott Sacknoff, SPADE Defense Index Discussing Impact of Covid-19 on Sector

HomelandDefenseStocks.com Q&A Interview with Scott Sacknoff, SPADE Defense Index Discussing Impact of Covid-19 on Sector



Point Roberts, WA and Delta, BC – July 21, 2020 (Investorideas.com Newswire) Investorideas.com, a global news source and leading investor resource releases an exclusive Q&A interview through its defense portal HomelandDefenseStocks.com.


Q&A Interview: HomelandDefenseStocks.com (HDS) Scott Sacknoff
With us today is Scott Sacknoff, manager of the SPADE Defense Index (DXS), an investment benchmark for companies involved with the defense, homeland security, aerospace, and government space markets.

In this interview we are going to cover the impact of COVID on the sector, how stocks have performed in the first half of 2020 along with prospects for the second half of the year, 4 firms systematically important to the defense sector that people may not be aware of and the forthcoming US presidential elections. 

HDS:  Let’s start with the state of the defense business and the impact of COVID on the sector.

Scott Sacknoff:  Generally fine. The Department of Defense and the major prime contractors have been front-loading contracts and accelerating approval of international sales.  COVID has impacted the billions of dollars of contracts have been left and the Pentagon and prime contractors have accelerated hundreds of millions in payments to supply chain partners in an effort to protect the US defense industrial base during the coronavirus slowdown.  Though some suppliers and firms may have financial issues, the defense industrial base appears solid.


HDS: Yet aerospace and defense stocks haven’t done so well and underperformed in the market in the first half of 2020.  Even as the market rebounded from the sharp decline of greater than 30% earlier this year only to near its prior peak, the sector has lagged. Talk to us about this and what you expect for the second half of 2020 and going in to 2021.

Scott Sacknoff: Our defense sector benchmark has outperformed the market significantly for years, by more than 120% in each of the past two decades, so a decline is natural.  When markets correct, people tend to sell where they have the biggest gains.  Many firms involved with commercial aerospace saw a sharp selloff due to the double whammy of air travel being essentially shut down due to the COVID and the Boeing 737Max production being put mostly on hold as the firm works through getting it recertified for flight. 

There are three key points to remember.  One, commercial air traffic and cargo transportation will rebound at some point.  There is no question about this.  Two, Boeing is one of two major manufacturers of large aircraft along with the European Airbus.  While the firm is working through some issues, the possibility that they can not overcome their current troubles is highly unlikely.  Three, the investment performance of the defense sector always rebounds.  Looking at more than thirty years’ worth of data, and an investment tracking the SPADE Defense Index never lost money if you reinvested the dividends and held for at least 30 months. 

Looking forward to the second half and 2021, I’d expect that Boeing receives flight readiness approval from the FAA for the 737-Max. Combined with the likelihood of a vaccine for COVID or medications that reduce its impact, we should see air travel steadily gain; maybe not to prior levels in the near term, but high enough to justify airlines to continue investments into modernizing their air fleet into more fuel-efficient vehicles.  Lastly, defense spending should continue to exhibit the strength it has seen in recent years.  The Pentagon has already issued research, development, and production contracts totaling hundreds of billions in system upgrades that will fund a number of programs for the next several years.  Likewise, while the news cycle has been focused on COVID, there remain a number of hot spots around the globe which have not gone away.  All of these factors, along with the historical track record of the Index, indicate that a reversion toward the mean is probable.  One key to tracking investor sentiment is looking at the number of shares outstanding in a fund such as Invesco’s Defense ETF (ticker:  PPA).  After declining when people raised cash during the market crash, shares invested in the fund have stabilized.  This indicates to me that most of the selling is done and when the sector starts to receive some positive news, we should see inflows and that would drive a rebound in the stocks of defense firms. 


HDS: The wildcard, of course, is the US presidential election in November, since the government budget for defense, homeland security, intelligence, and space remains a large part of the sector’s revenue.

Scott Sacknoff: Interestingly, political party has less to do with defense sector returns that one might think. The key is whether our perception is that the world is a safer or more dangerous place.  There was a Democrat in the White House for World War II, the Korean War, Vietnam, and recent actions in Iraq and Afghanistan.  There was a decline in defense spending when Congress saw a “peace dividend” after the fall of the Soviet Union and we perceived the threats as being less. Looking at the world, I don’t see a more stable planet.  Additionally, we’ve researched stock market performance for the past hundred years and especially since the Great Depression and the preponderance of recessions and market declines happened when a Republican controlled the White House.  It just goes to show you that everything isn’t as black and white as we think. 


HDS: The SPADE Defense Index just added four firms to its benchmark, some of which investors may be unfamiliar with.  Who are they and why were they added?

Scott Sacknoff: We continually review the universe of public companies to identify new public listings, spin-offs, mergers, or firms expanding their activities within the sector.  At the same time, we monitor the sector, using a variety of industry resources and announcements, to understand any changes to philosophy or defense strategy by the Pentagon. Our June review identified four firms that either recently went public or who now qualify based on our rules regarding size, liquidity, and whether defense is systematically important to the firm and the firm to the Department of Defense.  These four were:
·        RADA Electronics, an Israeli defense electronics firm specializing in radar sensors that is listed on the NASDAQ (RADA). 
·        PAE Systems (NYSE: PAE), a contractor with 15,000 plus employees that provides consulting, logistics, and professional services. They’ve been around since 1955 but recently went public after being acquired by private equity in a special purpose acquisition company (SPAC). 
·        Howmet (NYSE: HWM) is a firm that emerged after two rounds of spinoffs from Alcoa. The resulting firm has more than 65% of its revenues coming from specialty metals that are used on things like jet and rocket engines, titanium structures, and castings.
·        Lastly, post-COVID, DoD designated Spirit AeroSystems (SPR) as systematically important and critical to the US domestic production capacity.  Most of their business is in commercial aerospace systems but the firm generates more than half a billion in defense-related sales which it hopes to double in the next few years. 


HDS:  Thank you for taking the time to chat with us.  For more information on the SPADE Defense Index, please visit spadeindex.com/defense.  To learn more about the Invesco Aerospace and Defense ETF that tracks this benchmark, please visit Invesco’s website, the ticker is PPA.

This interview does not constitute an offer of an investment product. SPADE Indexes makes no representation regarding the advisability of investing in vehicles based on any of its indexes including the SPADE Defense Index. All information is provided ‘as is’, for information purposes only, and is not intended for trading purposes or advice. Neither SPADE Indexes nor any related party is liable for any informational errors, incompleteness, or for any actions taken based on the information contained herein.

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