Cedar Grove's Paul Cerro on what makes $RCAT drones unique + odds for winning SRR contract

Paul Cerro, CIO of Cedar Grove Capital Management, joins the podcast to discuss his thesis on Red Cat Holdings (NASDAQ: RCAT), a drone technology company integrating robotic hardware and software for military, government, and commercial operations. Cedar Grove RCAT thesis: https://www.cedargrovecm.com/p/red-cat-rcat-trade-worth-up-to-200-prcnt Chapters: [0:00] Introduction + Episode sponsor: Ycharts [2:28] What is Red Cat $RCAT and why are they so interesting to Paul [6:26] Why is $RCAT relevant in the drone market? What is unique about $RCAT drones? [13:29] Capabilities of $RCAT drones and how much they are selling them for (to the military) / what specifically going on with $RCAT drone that US Government is using them vs. going with commercial drone [21:21] What is the SRR Contract and why is this a big deal [25:40] Odds that $RCAT wins this SRR contract [30:00] Economics if $RCAT wins the contract / what margins would look like [33:12] Valuation: market already baking in best-case scenario in terms of them winning? [36:17] What does the company look like if they don't win the contract / how much is Paul's bet on $RCAT winning the SRR contract vs. betting on Red Cat in particular [40:05] Are the odds in the stock price right now that they win this contract vs. what Paul thinks the odds are that they win this contract / in Paul's opinion, what he thinks the market is missing [45:22] Is there correlation between the NATO contract and SRR contract? [50:39] Final thoughts Today's sponsor: Ycharts This episode is sponsored by our friends at YCharts. A typical day in the life of a financial advisor calls for back-to-back client meetings, juggling portfolio management, and the consistent desire to improve client relationships. YCharts’ report and proposal tools could be the missing piece to help you effectively handle these time-consuming tasks. Now more than ever, clients want to hear from their advisors. And with user-friendly templates at your disposal, generating impactful client reports can be easily integrated into your everyday routine, helping you free up time and focus on what matters most: enhancing client interactions and growing AUM. Click here to start your free YCharts trial and level up your game with YCharts: https://go.ycharts.com/yet-another-value