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BullMarketRun.com Special Report

Today we begin a series on the “Drone Revolution” and how North America’s only publicly traded company with a service-based drone business focused on the agricultural sector could soon be flying high with investors.

Deveron UAS, currently completing its listing application with the Canadian Stock Exchange (CSE) after deciding to switch from the Venture following a change of business announced late last year, sees an enormous opportunity to drive change in the Canadian agricultural sector in ways that have proven highly successful in France and other parts of the world as the global Agtech industry rapidly gains momentum.  In fact, Deveron’s business model is already being embraced by farmers in Ontario where the company commenced revenue generating flights last month and is aiming to gain a slice of the 7 million acre cash crop market in that province before rolling out its services on a national scale.

Norm Lamothe, a successful Ontario farmer and aviation specialist, is playing a key role in the Deveron UAS roll-out of its business model which is initially focused on the 7 million acres of prime agricultural land in Ontario.

Deveron has armed itself with expertise in both the agricultural and tech sectors including Norm Lamothe (pictured), the original owner and developer of UAS business Eagle Scout acquired by Deveron.   The company has developed key relationships over the past year, from large provincial co-ops to the brightest software minds in Silicon Valley, and has also caught the attention of well-known Toronto small-cap fund manager Roger Dent who will be joining the Deveron board.

Deveron could quickly turn into a market darling given the public’s growing fascination with drones and the potential of its common sense business plan.

The possibilities in this sector are mind-boggling when one considers not only the nearly 90 million acres of cash crop just in Canada, but how farmers in this country – like elsewhere on the continent and around the world – are looking for efficient solutions to various problems including this: rates of yield increases for major crops have been trending negatively on a 10-year curve at the very time that global forces of population growth, prosperity and globalization are putting basic supply-and-demand pressure on our agricultural system.

The best drones, sensors and software can go a long way toward helping farmers improve yields, reduce costs, identify problem areas before they can be naturally seen with the eye, and conduct important research.  But farmers want to farm, and managing the capital costs and the complexities of owning their own drones and acquiring the proper data is simply not practical for most.  That’s where Deveron enters the picture as a full-service solution that focuses on delivering the entire work flow that allows farmers to seamlessly integrate high resolution imagery into their decision making.

“There are so many opportunities to apply technology to the 88 million acres of farmland in Canada, and our UAV service delivers data analytics and solutions while saving the farmer the additional burden of owning hardware, interpreting data, planning flights and dealing with the regulatory system,” explained Lamothe. 

DEVERON UAS – Growing Anticipation Regarding CSE Debut

David MacMillan, Deveron’s VP of corporate development whose knowledge of the drone space is probably unparalleled on Bay Street, added:  “As we focus on building credibility, relationships and growing our footprint in Ontario, it is encouraging to see such excitement from the agricultural community with respect to our service offering. Our first assignment was completed in conjunction with one of Ontario’s largest farming co-operatives, and we look forward to building this relationship as the premier supplier of drone imagery services for agriculture in the region.”        

“TRANSFORMATIONAL” – MacMillan On The Exploding Drone Industry & Deveron’s Niche  

Click on the arrow to listen to the first short BMR interview clip with MacMillan as he discusses with Jon the “Big Picture” of drones and how Deveron could flourish as a data analytics provider in the agricultural sector:

Click here for a fascinating Part 2 of our interview with MacMillan as part of our Morning Musings.

Deveron UAS, with less than 20 million shares outstanding and just 3 million or so in the public float once it commences trading on the CSE, has a chance to soar higher than its drones if it can capture even just a fraction of PricewaterhouseCoppers’ predicted value of drone powered solutions in the agricultural industry.  Shareholders will win and so will farmers as Deveron integrates disruptive technologies in ways that allow farmers to save money while optimizing field efficiencies.

Note:  The writer holds a share position in Deveron UAS.

Disclaimer
BullMarketRun.com (BMR) is reader-funded as a subscriber service and completely independent from any companies it covers.  We accept no advertising either.  No compensation was paid by Deveron UAS for the above article or its distribution.  Our stock coverage is for informational and entertainment purposes only and must not be viewed or interpreted as “buy”, “sell” or “hold” recommendations. No investment opinion or other advice is being rendered on any stock or company. We strongly recommend that you consult with a qualified investment adviser, one licensed by appropriate regulatory agencies in your legal jurisdiction, and do your own due diligence and research before making any investment decisions. The stocks we cover, by definition, are highly speculative and potentially very volatile. Investors are cautioned that they may lose all or a portion of their investment if they make a purchase or short sale in these speculative stocks. We are not Registered Securities Advisers. Our opinions can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Adviser operating in accordance with the appropriate regulation in your area of jurisdiction. It should be assumed that BMR personnel, writers and their associates may hold or dispose of or trade in positions in any securities mentioned herein at any time. Owner/Publisher of BullMarketRun.com is Terry Dyer of Langley, British Columbia.        

Forward Looking Statements:
All statements in BMR’s reports, other than statements of historical fact, may be forward-looking statements. These statements relate to future events or future performance. Forward-looking statements are often but not always identified by the use of words such a “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and similar expressions.

Gold has traded between $1,228 and $1,247 so far today…as of 9:30 am Pacific, bullion is down $19 an ounce at $1,229…Silver is off 13 cents at $16.22…Copper is off a penny at $2.10…Crude Oil has gained 47 cents cents to $48.55 while the U.S. Dollar Index has rallied another one-quarter of a point to 95.59…

Large speculators pushed their heavily bullish position in Gold futures slightly higher in the most recent weekly positioning data released by the Commodity Futures Trading Commission…the decline in Gold prices since last Tuesday’s cutoff for the most recent CFTC data suggests that net length may have narrowed…

Gold fell to a 4-week low this morning as continued hawkish comments from Federal Reserve officials sent the U.S. dollar to a 2-month high against a currency basket…Gold is going to win no matter what the Fed does as investors have more confidence in the metal, a real currency, than they do in the manipulative and fickle Fed…and why should bullion investors be fearful of another Fed rate hike when the first one in nearly a decade last December was followed by Gold’s biggest quarterly price jump in 25 years?…the Fed is trying to do what no major central bank in the world has been able to accomplish since the 2008 financial crisis – maintain a rate hike cycle…they will not succeed, even if they’re able to push through another 1 or 2 hikes…

The prospect of a June rate increase, as indicated by Fed meeting minutes released last week, and a strengthening dollar have pushed Gold down nearly 4% so far in May, putting it on track for its biggest monthly decline since November…however, that has only served to help unwind temporarily overbought conditions and lay the foundation for the next wave up in bullion…

Citi Research hiked its forecasts for most commodities today, including Gold…the bank now looks for Gold to average $1,280 an ounce in the 2nd quarter, $1,300 in the 3rd, but then cool to $1,250 for Q4….Citi’s full-year average forecast is now $1,255 an ounce…

The Oregon Example Of The Attitude That’s Causing America To Lose Its Competitive Edge

The United States already has one of the world’s highest federal corporate tax rate structures in the world, a problem the next President is going to have to fix along with a host of other tax and regulatory issues that have held back American growth thanks to 8 years of horrendous policies from the Obama administration while Republicans in Congress were largely ineffective…

So what’s Oregon now contemplating?…the “punish the wealthy, punish corporate America” mentality of wacko socialists like Bernie Sanders and his many delusional followers (mostly the young who have been indoctrinated with an anti-capitalist message from left-wing professors in colleges and universities) has led to a push in that state for a massive $2.8 billion annual corporate tax hike to go on the ballot in November…if Oregonians were to vote in favor of the proposed measure, such a move would create the most aggressive tax climate for big business of any state in the nation…liberals of course will label this as being “progressive”…

Oregon’s ballot proposal comes as raising taxes on the wealthy and large corporations is at the forefront of a national debate about how to close the gaping economic disparities between rich and poor in a post-Great Recession era…rather than educating those with less money on how to become more entrepreneurial and wiser with their finances, the left’s answer is to take from the “rich” and distribute to the “poor”…socialism is a failed economic model but it seems much of the Millennial Generation has been too busy Twittering to read history (Sanders is 73 years old and should know better but he’s just a career politician and curmudgeon from Vermont)…

The proposal’s labor union backers are just one step from getting the measure on Oregon’s November ballot after submitting 130,000 signatures to state elections officials last week…they say it would tap a “tiny” portion of Oregon businesses while bringing a huge boost to cash-strapped public education, health care and senior services…the cost of going in that direction, of course, will be lost jobs, slower economic growth and higher costs for consumers…what many liberals don’t seem to understand is that the only way to maintain decent funding levels for government services is to create wealth, and the best way to accomplish that is through low taxes and a regulatory regime that doesn’t burden businesses of all sizes as it does now…

In today’s Morning Musings…

1. TSX Gold Index chart – targeting the “sweet zone” for accumulation on this pullback…

2. Canasil Resources (CLZ, TSX-V) and Orex Minerals (REX, TSX-V) drill 46 m near-surface grading 218 g/t Ag at Sandra Escobar discovery in Mexico…

3. Critical Elements (CRE, TSX-V) continues to climb after announcing $5 million bought deal to advance its Rose Lithium-Tantalum Project in Quebec…

4.  The U.S. dollar trap…

5.  Updated Silver charts – what to look for near-term and longer-term…

Plus more…click here to take advantage of our Spring Sizzler Subscription Special in effect for a limited time only, or login with your username and password to view the rest of today’s Morning Musings… 

SAVE 25% with a risk-free subscription (as little as $1 per day) as you gain full access to this and other exclusive BMR content…

TSX Venture Exchange and Gold

Editor’s Note:  Due to the Victoria Day long weekend, there will be no Sunday Sizzler report tonight.  Though Canadian markets are closed tomorrow (U.S. markets are open), there will be an abbreviated Morning Musings. 

The Venture’s bullish bias was again on display last week as the Index posted a small gain despite Gold’s worst weekly performance in 2 months on a continuation of the rally in the U.S. Dollar Index.  The “sell in May and go away” strategy of some investors hasn’t worked very well as the Venture has gained 1.6% so far this month after finishing Friday at its weekly and yearly high of 686. 

The Venture has had ample excuses to correct this month (Gold down 3%, Silver off 7.4%, Copper down 8.7%, greenback up) but hasn’t.  Find out why the Index is poised to continue its climb. 

Click here to read the rest of today’s report with more winning trading strategies while taking advantage of our Spring Sizzler Subscription Special, or login with your username and password.

Gold, on track for its biggest weekly drop in 2 months, has traded between $1,250 and $1,261 so far today…as of 8:15 am Pacific, bullion is down $2 an ounce at $1,253…Silver is flat at $16.46…Copper is unchanged at $2.08…Crude Oil is 19 cents lower at $47.97 while the U.S. Dollar Index is up one-tenth of a point at 95.41…

Holdings in Gold-backed exchange-traded products have kept rising, even as prices back off…assets climbed 5.9 metric tons to 1,833.1 tons yesterday, the highest since late 2013 according to data compiled by Bloomberg…Gold investors aren’t buying this week’s hawkish interest rate rhetoric from Fed officials – the talk appears to be no more than a continuation of the Fed’s countless charades…however, even if the Fed were to hike in June or July, when would the next hike be in an election year?…the market is a forward-looking machine…and keep in mind that interest rates are still well below historical norms at a time when the business cycle expansion (albeit a low-growth one under Obama) is unusually long at 7 years…the average is 56 months or 4.5 years…the next recession will hit the U.S. before the Federal Reserve has the chance to hike interest rates back to a more historically normal level…

New York Fed President William Dudley said yesterday that there was a strong sense among central bank officials that markets were underestimating the probability of policy tightening…that came a day after the minutes of the Fed’s April meeting revealed that most policymakers felt a rate increase might be appropriate as early as next month…same old hawkish rhetoric with little action to show for it…

Debt Piles Up Everywhere

According to a report in today’s Wall Street Journal, U.S. credit card balances are on track to hit $1 trillion this year as banks aggressively push their plastic and consumers grow more comfortable carrying debt…that sum would come close to the all-time peak of $1.02 trillion set in July 2008, just before the financial crisis intensified, and could signal an easing of frugal habits ingrained by the recession…consumers are taking on other forms of debt, too…auto loan balances surpassed $1 trillion in the 1st quarter, a record for the industry, according to a report yesterday from credit bureau Experian…

Climate Change Fanatics Outraged Over NEB’s Decision

The “climate change” fanatics are out in full force following the National Energy Board’s conditional approval yesterday for the $6.8 billion Trans Mountain pipeline expansion…Vancouver’s mayor, far-left Gregor Robertson, says he will “vigorously advocate” for the federal government to reject the expansion.  “We’re very disappointed,” he told CKNW yesterday, “that the National Energy Board did not have a fulsome process that welcomed in all voices, that looked at the impacts of climate change (our emphasis) resulting from this proposal, that looked at the impacts on Vancouver’s economy which are inevitable when there’s an Oil spill in our waters.”

Robertson is a total lunatic (he also doesn’t want the name of Donald Trump, increasingly likely to become the next U.S. President, to adorn a downtown luxury tower)…his aim is to get Vancouver, not to mention the world, completely off fossil fuels by the time he hits retirement age…this is what Robertson tweeted immediately after the climate change agreement signed in Paris late last year:  “So thankful that nations agreed to fight climate change/end the fossil fuel era (our emphasis)“…

The regulator said yesterday that Kinder Morgan’s Trans Mountain Project must meet no less than 157 conditions, so how the mayor can complain about the lack of a “fulsome process” is difficult to understand.   “These conditions would address issues such as safety, protection of the environment and other considerations,” the NEB said in a 533-page report…the federal cabinet, however, will make the final decision…

The board said the benefits outweigh the burdens (of course), and therefore the expanded pipeline will be in the national public interest…

Will Prime Minister Trudeau make the right call here?…his father, the late Pierre Trudeau, famously gave British Columbians the “finger” decades ago…will Justin, whose “sunny ways” weren’t exactly on display in the House of Commons this week with his immature, rude behavior, give British Columbians and the West his now famous “elbow”?…Justin has crafted his own version of his father’s disastrous National Energy Program, but the mainstream media are blind to it…

In today’s Morning Musings…

1. Follow the money – Colorado Resources (CXO, TSX-V) hikes financing to $4.6 million, while Critical Elements (CRE, TSX-V) draws fresh momentum from Canaccord $5 million bought deal…

2. Powerful evidence of a turnaround in Garibaldi Resources (GGI, TSX-V)…

3. Update on Gold Bullion Development (GBB, TSX-V)…

Plus more…click here to take advantage of our Spring Sizzler Subscription Special in effect for a limited time only, or login with your username and password to view the rest of today’s Morning Musings… 

SAVE 25% with a risk-free subscription (as little as $1 per day) as you gain full access to this and other exclusive BMR content…

Gold has traded between $1,243 and $1,259 so far today…as of 9:00 am Pacific, bullion is down $5 an ounce at $1,253 after yesterday’s Fed-inspired tumble of more than $20 an ounce…Silver is off 43 cents to $16.45…Copper has shed a penny to $2.08…Crude Oil has retraced $1.03 a barrel to $47.16 while the U.S. Dollar Index is up slightly but off its highs at 95.25…

Hawkishly construed minutes of the April FOMC meeting, released late in yesterday’s trading session, gave the greenback a boost and sent Gold to its lowest level in 3 weeks – an over-reaction in our view given Fed officials’ obvious lack of credibility…Commerzbank stated, “As the minutes reveal, a few FOMC members spoke out at the most recent meeting in favor of already implementing a rate hike in April. And apparently most of the meeting’s participants believe it would be appropriate to raise interest rates at the next meeting in June if the next set of data point to stronger economic growth in the 2nd quarter, further improvement on the labor market and an increase in inflation.”

Same old stuff from FOMC members, and the Gold market will call their bluff…keep in mind that Fed officials have repeatedly failed to match their rhetoric with actions which is one important reason bullion has moved the way it has this year…they have also consistently overestimated inflation…U.S. GDP growth continues to be weak under a horrible Obama economic program while the global economy is sputtering…furthermore, what are the odds of the Fed actually hiking interest rates next month when their meeting occurs just 1 week before Britain votes on whether or not to remain in the EU?…polls show the Brexit vote to be extremely close – it could go either way with many unknown consequences if Brits say NO to the EU…political uncertainty also extends to the United States…traders who believe the Fed will suddenly and magically muster the courage to initiate another rate hike next month are in for a rude awakening…this is setting up the next fall in the U.S. Dollar Index will which run into a wall around 96–97 on this rally…

By the way, an important headline index for a survey of manufacturers in the Philadelphia area saw some slowing momentum in May, showing a reading of –1.8, according to a report released this morning…the data was well below economists’ expectations and was the 8th negative reading in the last 9 months, signaling tenuous growth…

In today’s Morning Musings…

1. Updated Gold and Venture charts – stay the course…

2. Gold Standard Ventures (GSV,TSX-V) starts a 40,000 m drill program at Railroad/Pinion…

3. Graphite One Resources (GPH, TSX-V) remains halted, pending news…

4. Nemaska Lithium (NMX, TSX-V) hits new all-time high…

Plus more…click here to take advantage of our Spring Sizzler Subscription Special in effect for a limited time only, or login with your username and password to view the rest of today’s Morning Musings… 

SAVE 25% with a risk-free subscription (as little as $1 per day) as you gain full access to this and other exclusive BMR content…

Gold has traded between $1,266 and $1,277 so far today…as of 10:00 am Pacific, bullion is down $7 an ounce at $1,272…Silver is off 14 cents at $17.08…Copper has fallen 2 cents to $2.10…Crude Oil is up 44 cents to $48.75 while the U.S. Dollar Index has gained nearly one-fifth of a point to 94.71…

Holdings in SPDR Gold Trust rose 0.56% to 855.89 tonnes yesterday, the highest since November 2013…

Traders will be eyeing the Fed’s April meeting minutes, due shortly this morning, for further clues on the U.S. interest rate outlook…

U.S. data yesterday showed consumer prices posting their biggest increase in more than 3 years in April…housing starts and industrial production rebounded strongly last month as well…what would the Fed do, however, if inflation were to start picking up but the Obama low economic growth problem continued?…here’s a fact that the left in the U.S. and Canada doesn’t like to hear – Obama is the first President in American history to not see a single year of 3% GDP growth…under Ronald Reagan, average annual real GDP growth was 3.5%…Obama will be lucky to average 1.5% GDP growth during his 8 years…there are simple reasons for that, yet Hillary Clinton and Bernie Sanders – the angry, bitter 73-year socialist – want to take the Democratic Party even further to the left…

Goldman Got It Wrong On Gold & The Fed – Now They’re Pushing High-Yield Credit

Goldman Sachs has a “neutral” view on equities over the next 12 months, saying there’s no particular reason to own them.  “Until we see sustained signals of growth recovery, we do not feel comfortable taking equity risk, particularly as valuations are near peak levels,” Goldman said in a note yesterday…the firm downgraded Europe and Japan equities to “neutral” over a 12-month view, while upgrading U.S. equities to neutral.  “The Fed has been more dovish than we initially expected,” Goldman admitted, “and market impact and realization of policy divergence has slowed, creating a boost to the U.S. relative to Europe and Japan.  A strong yen and euro are weighing on European and Japanese earnings, while negative rates weigh on their financials.”

Goldman said it prefers credit to equity, with valuations less stretched, particularly in the high-yield segment…it’s staying overweight on credit on both 3-month and 12-month horizons…

Oil Update

Oil futures remain firm as traders continue to weigh the impact of unplanned supply disruptions from Alberta to Nigeria…

The extent of the supply disruptions has clearly been more significant than most analysts had expected…unscheduled supply outages in the Oilsands, due to the Fort McMurray wildfires, as well as Nigeria (militant/terrorist attacks) are amounting to around 2 million barrels per day (bpd) – giving Oil prices strong support in recent weeks…Nigeria’s Oil minister says sabotage had reduced the country’s output by 800,000 bpd to 1.4 million bpd…

There is plenty of supply elsewhere which is why Oil prices aren’t skyrocketing at the moment, though the fundamentals and technicals are lined up for higher prices…exports from Iran are set to surge this month to 2.1 million bpd, nearly 60% above their level a year ago, with European shipments recovering to about half of their pre-sanction levels…

U.S. Crude inventories in the week to May 13 fell by 1.1 million barrels to 541.9 million, as reported this morning by the EIA…analysts had expected a fall of 2.8 million barrels, American Petroleum Institute (APP) data showed yesterday…

In today’s Morning Musings…

1.  Garibaldi Resources (GGI, TSX-V) digs deeper into the “Heart of Gold” Camp with 2 key property acquisitions and announces drill permits for King North…

2. Updated charts for GoldQuest Mining (GQC, TSX-V) and Precipitate Gold (PRG, TSX-V)…

3. Venture vs. the U.S. dollar…

Plus more…click here to take advantage of our Spring Sizzler Subscription Special in effect for a limited time only, or login with your username and password to view the rest of today’s Morning Musings… 

SAVE 25% with a risk-free subscription (as little as $1 per day) as you gain full access to this and other exclusive BMR content…

The BMR Top 50 Opportunities List unveiled in early December 2015 is now up a staggering 110% with 44% of the picks posting triple-digit percentage gains in just over 5 months. 

The 110% overall return for the 50 companies compares to a 31.5% advance for the Venture and a 17.2% climb in Gold during the same period.  The TSX is up 2.9% since then, the Dow is off 1.8% while the NASDAQ has fallen 8.2%.

Individual category performances (comprising 50 stocks) are as follows:

PRODUCERS:  Up 96%

NEAR-PRODUCERS:  Up 128%

EXPLORERS:  Up 119%

EXPLORER SLEEPERS UNDER A NICKEL:  Up 184%

NON-RESOURCE:  Up 21%

In this morning’s report is an updated performance review of each category through the end of last week’s trading, and comments on individual companies.  In total, 38 or 76% of the 50 picks have increased in value since the 4th of December, 11 are down and 1 is unchanged.  The average return so far, as mentioned, is an impressive 110% or 250% on an annualized basis.

Not included in the tabulation yet are the 17 recent additions (NEW ADDITIONS), companies that have been added at various times since late February.  Combined, this group is already up 49% with each of these stocks posting gains (100% accuracy).

We’ll be issuing an updated Top Opportunities List (#2) in the near future.

1.  Cordoba Minerals, Pure Gold Mining and Lithium X Energy are up 569%, 405% and 372%, respectively…

2.  Why some of the new additions have a chance to skyrocket…

3.  Stocks with increasing momentum including a “turnaround” play (Garibaldi Resources) with fundamentals and technicals now aligned…

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