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The Year is 2016…
Broken O Ranch, Augusta, Montana: Billionaire Stanley Kroenke owns a 124,000-acre property that produces 700,000 bushels of grain every year and has 4,500 cows. To keep tabs on his vast property – the largest farm in Montana – Kroenke’s employees have just started using drones to take photos, monitor crops, and track the herd.
McAllen, Texas: This small Texas town has become a hot spot for illegal immigrants attempting to cross the Rio Grande River and enter the U.S. As part of its efforts to crack down on illegal immigration, U.S. Border Patrol has ramped up use of drones to closely monitor the border 24 hours a day to support efforts on the ground.
Washington, D.C.: News channel 5 has discontinued use of its traffic helicopter. Even in the nation’s capital, the FAA has approved the use of drone aircrafts for monitoring traffic and photographing important events from the sky.
The Serengeti, Kenya: UNICEF – the international health organization – aims to prevent the spread of HIV/AIDS in rural Africa, where it has historically been difficult to deliver vaccines to those in need. In a new partnership with the Gates Foundation, UNICEF is able to consistently deliver vaccines to remote villages through the use of drones.
It may sound impossible…but within just three years, this could be the new reality.
The drone business may seem new and futuristic. To some, they may seem downright scary – a sign that robots are taking over the world.
But by 2016 – just three years from now – drones may seem as commonplace as electric cars and 3-D printers.
Unmanned aerial vehicles (UAVs) – better known as drones – have historically been used almost exclusively in military conflicts. The North Atlantic Treaty Organization (NATO) started using them in the mid-‘90s to spy on Serbian positions following the breakup of Yugoslavia. Today, the U.S. military uses drones as covert spying tools and weapons in the War on Terror in places including Pakistan and Yemen.
Military use, however, represents a very small segment of the drone business. The real opportunity for investors lies beyond that.
Drones are just starting to be used in non-military capacities such as firefighting, border control and law enforcement. Today, there are 327 active drone pilot certifications in America. The Federal Aviation Administration (FAA) estimates that number will swell to 7,500 drones within the next five years.
Momentum for drones in the mainstream is picking up. Amazon (Nasdaq: AMZN) founder Jeff Bezos made headlines last Thanksgiving when he told “60 Minutes” that his company was exploring the possibility of using drones to deliver packages to customers in 30 minutes or less.
A few months prior, the FAA certified two drones for commercial use in America’s skies – the first drones ever to gain certification for commercial purposes. The move came shortly after the FAA authorized drone testing in 10 states. The testing is intended to explore ways to safely integrate drones into the nation’s airspace. If testing goes well, as expected, Congress could allow the use of commercial drones beginning in late 2015.
When that happens, companies that are in the business of drones should benefit, and drones will likely become the next red-hot sector on Wall Street. You may recall the explosive growth of the 3-D printing industry, and the impressive (1,100% and counting) profits for early investors in 3-D printing stocks such as 3D Systems (NYSE: DDD). Drones offer investors a similar opportunity for explosive growth.
As it stands today, drones are a small, niche business. But major growth for the industry is right around the corner. Investors who act now by investing in the drone business could reap major profits in the years ahead.
My boss, Ian Wyatt, is all in on the drone revolution. That’s why he just bought a pure-play stock that stands to profit from the coming commercialization of drones. Click here to see his pick.
In the meantime, don’t be surprised if two years from now it’s not a UPS delivery man knocking on your door to hand you that Kindle Fire you ordered on Amazon. It could be a drone.
This Smartphone Stocks is Set to Soar — And It’s Not AAPL
We’re a month away from Apple releasing the most technologically advanced phone on the planet. While we love Apple, we’re recommending a much less known company today. A company that provides the technology, without which smartphones couldn’t exist. It’s the company reaping massive profits each time a new Apple (or Samsung) smartphone is activated. Click here for the full story.