Theon International looks very attractive, though European defense companies are out of favor right now. x.com 

Non-ITAR defense suppliers such as Electro Optic Systems, BAE Systems, Theon and Rheinmetall are an overlooked source of alpha as Europe, Asia and the Middle East shift defense spending away from US ITAR-controlled equipment. That shift comes with huge spending, yet US-based investors misunderstand it and wrongly call defense tech dead. Eurosatory confirmed the view, and the big alpha is not in drone builders. x.com  x.com  x.com 

European equities offer relatively low cross-region valuations alongside excellent fundamentals across infrastructure, aerospace, space and defense, financials and other industrial segments. This is the most bullish outlook on the region since after Liberation Day last year. Ferrovial, Societe Generale, RWE, OHB, BNP Paribas and Nexans are named as expressions of that view. x.com 

Defense stocks such as Kratos, AeroVironment, Ondas, Northrop Grumman and L3Harris are trading as if global leaders had turned into pacifist hippies, which is probably not the case. x.com 

European defense tech clearly leads US peers in battlefield impact, getting real-world combat validation years ahead of most legacy US primes' roadmaps. US allocators still treat Europe's sovereignty buildout as a sentiment trade rather than the multi-year EU procurement policy it actually is. This answers @LarsenJensenUSA asking whether European defense tech has had a greater battlefield impact than American firms. x.com 

The best valuation-adjusted European and Asian defense names are probably not the obvious winners such as Saab and Rheinmetall, where much of the easy multiple expansion already happened. In Europe, Leonardo ranks first, then BAE Systems. In Asia, Korea Aerospace Industries and Hanwha Aerospace lead, followed by LIG Nex1 and Hyundai Rotem. Per @eliant_capital, this year's geopolitical developments mean European and Asian defense companies are still likely headed a lot higher. x.com  x.com 

Defense and drone stocks have been oversold even though their fundamentals have not changed. Ondas offers explosive growth and counter-drone exposure, Kratos has Valkyrie and hypersonics, AeroVironment has Switchblade and Army contracts, Unusual Machines has leverage to drone components, and Red Cat has Army wins and NDAA-compliant drones. x.com 

Small-cap defense stocks such as Red Cat, AEVEX and Kraken Robotics look like buying opportunities after a sell-the-news drop following the Iran strikes, because the thesis has only gotten stronger. The U.S. lacks enough drones, interceptors, mine-hunting technology and critical metals, and a proposed $1.5 trillion defense budget should bring a wave of fresh contracts as it advances. The Iran war is a major catalyst even though Lockheed, Kratos and Red Cat have fallen 15-19% in a month. x.com 

Kraken Robotics is not yet a buy despite falling almost 60% from its high. It should first report combined results with Covelya that preserve a credible growth and margin path, and the stock should form a base; the defence factor remains deeply out of favor. @DeepSailCapital argues it is near a bottom, expecting CAD 0.20 of 2028 EPS, mid-20s to 30s revenue growth and product ramps with Anduril. x.com  x.com 

These five defense autonomy companies can each 10x on fast-growing drone, unmanned and counter-drone businesses. Kraken Robotics makes subsea drones, batteries and sonar for autonomous underwater warfare. Ondas grew TTM revenue 979% to $174M and guides 2026 to $525M-$550M. Kratos has a $2B backlog in unmanned systems, hypersonics and missile defense. AeroVironment grew TTM revenue 84% to $2.0B on military drones, and Red Cat grew 867% with a 2026 target of $150M-$180M. x.com