Core Insights - A significant shift is occurring in the small-cap sector, particularly for companies valued under $2 billion, as they transition from R&D to mass commercialization and revenue generation by January 2026 [3][4] - The small-cap market presents a higher risk and volatility compared to blue-chip stocks, but offers substantial growth potential for companies that successfully execute their business models [4] - Kraken Robotics has made headlines with a $35 million order for subsea battery technology, indicating a strong demand for its SeaPower technology and validating its leadership in marine defense systems [6][8] Company Highlights - Kraken Robotics specializes in ultra-high-resolution sensors and subsea batteries, catering to defense contractors and offshore energy clients [6] - The recent $35 million battery orders from three customers exceed Kraken's entire Q3 2025 revenue of $31.3 million, showcasing a significant acceleration in demand [7] - The subsea batteries developed by Kraken require specialized engineering, confirming the company's technology as a preferred standard for autonomous underwater vehicles (AUVs) [9] Industry Developments - Enovix Corporation has completed critical testing of its high-volume manufacturing line, enabling scalability for mass-commercial production [8] - Aehr Test Systems is pivoting its business model to meet the growing demand for reliability and burn-in testing of artificial intelligence processors [8]

Group 1: Archer Aviation Overview - Archer Aviation is an early leader in electric vertical takeoff and landing (eVTOL) aircraft, currently undergoing testing and certification for commercial operations [2] - The company has attracted attention for its defense applications through a partnership with Anduril, developing eVTOL craft for military purposes [2] - Analysts expect Archer to transition to sales this year, with potential consumer launches in markets like Saudi Arabia and Dubai [3] Group 2: Stock Performance and Comparison - Archer Aviation's stock has increased approximately 9% over the past year but is down about 34% from its one-year high [4] - The company's market capitalization is around $6.5 billion, despite being in a pre-revenue state [5][8] - In contrast, Kraken Robotics, which has a market cap of about $1.8 billion, has seen significant revenue growth, with a 60% year-over-year increase to 31.3 million Canadian dollars in Q3 [8] Group 3: Financial Metrics - Kraken Robotics has a gross margin of 59% and a net income margin of 10.5% in the last year's third quarter, indicating strong profitability [10] - Archer Aviation's current stock price is $8.85, with a day's range between $8.79 and $9.22 [5] - Kraken Robotics' stock price is $5.76, with a day's range of $5.61 to $5.89 [9]

Company Overview - TMC The Metals Company (NASDAQ: TMC) is a deep-sea mining specialist aiming to become a major mineral-sourcing player, having gone public through a SPAC merger in 2021 [1] - The company's share price has decreased by 15.5% since its market debut, despite a significant rally of 627% over the last year [2][4] - TMC is currently in a pre-revenue state, focusing on tests and obtaining regulatory approvals necessary for commercial operations [2] Industry Context - The U.S. heavily relies on China for mineral sourcing, particularly for rare-earth minerals, creating economic and national security concerns amid deteriorating U.S.-China relations [3] - TMC's strategy primarily involves collecting nodules containing base minerals, but there is growing investor interest in its potential to enter the rare-earth minerals market [4] Competitive Landscape - Kraken Robotics (OTC: KRKN.F) is highlighted as a company with exposure to the deep-sea mining space, providing technologies that could help reduce reliance on Chinese mineral sourcing [5] - Kraken specializes in deep-sea battery systems and synthetic aperture sonar (SAS), enabling uncrewed underwater vehicles (UUVs) to operate at significant depths and for extended periods [6] - The demand outlook for Kraken's technologies in deep-sea mining appears promising, contrasting with TMC's current pre-revenue status [7]

Core Insights - Joby Aviation is an early leader in the electric vertical take-off and landing (eVTOL) aircraft market, having gone public via a SPAC merger in 2021, with its share price up approximately 53% since its post-combination trading debut [2] - Joby has begun to generate meaningful sales, but its aircraft still require Federal Aviation Administration (FAA) approvals, while potential commercial operations may start in Saudi Arabia and other regions this year [3] - Kraken Robotics, a Canadian company specializing in deep-sea battery and sonar technologies, is viewed as a more attractive investment opportunity compared to Joby, given its reliable revenue streams and strong growth [4][5] Joby Aviation - Joby Aviation's current market capitalization is approximately $14 billion, with a share price of $14.81, reflecting a day's change of -3.89% [3] - The company has experienced significant pricing volatility, with a 52-week price range of $4.96 to $20.95, and a gross margin reported at -11490.90% [3] - Joby is also being considered as a defense play, with potential for autonomous eVTOL drones to drive long-term growth [3] Kraken Robotics - Kraken Robotics has reported a 60% year-over-year sales increase, reaching CA$31.3 million (approximately $22.5 million) in the third quarter of the previous year [6] - The company achieved a gross margin of 59% in the same period, indicating strong profitability for a hardware company in its early manufacturing stages [7] - Kraken's market capitalization is around $1.7 billion, with a growth-dependent valuation, but it is already generating meaningful sales and earnings, contrasting with Joby's more speculative commercialization path [8]

Core Insights - Kraken Robotics' stock has surged over 1000% since 2023, driven by increasing demand for its deep-sea technology across defense and exploration sectors, indicating that the rally may continue [2][4] - The company operates in a market where 80% of the world's oceans remain unexplored, with potential resource values estimated between $40 trillion to hundreds of trillions, highlighting the vast opportunities for undersea technologies [3] - The company is well-positioned to benefit from rising defense spending and undersea exploration trends, with significant orders expected to accelerate in 2025 [4][6] Company Overview - Kraken Robotics specializes in undersea detection technologies, including sonar and mapping, as well as robotics-as-a-service (RaaS), which focuses on data capture and inspection for various sectors [3] - The recent acquisition of 3D at Depth enhances Kraken's service offerings, providing inspection and 3D imaging services, thereby expanding revenue streams and cross-selling opportunities [6] Market Dynamics - The company has received numerous purchase orders from diverse clients, including S&P 500 companies and NATO members, with orders exceeding $12 million announced in December, supporting its growth trajectory [7] - The anticipated listing on NASDAQ is expected to create new business opportunities and increase investor interest, enhancing coverage and ownership [4]

Core Insights - Deep Sail Capital's third-quarter fund performance showed a net return of 5.8%, outperforming the Russell 2000 Mid Cap Growth Index's 0.4% but lagging behind the Russell 2000 Index's 12.4% gain [1] - Year-to-date, the fund achieved an 18.1% return net of fees, compared to 10.2% and 10.4% for the respective indexes [1] - The long portfolio was a significant contributor to the fund's performance, while the short portfolio underperformed due to market conditions [1] Company Focus: ClearPoint Neuro, Inc. (NASDAQ:CLPT) - ClearPoint Neuro, Inc. is highlighted as a key stock in Deep Sail Capital's portfolio, focusing on minimally invasive surgical procedures [2] - The stock experienced a one-month return of -11.07% and a 52-week gain of 4.30%, closing at $14.06 with a market capitalization of $418.261 million on December 04, 2025 [2] - ClearPoint Neuro was one of the largest contributors to the fund's performance in Q3, alongside Kraken Robotics [3] Industry Developments - ClearPoint Neuro is set to benefit from uniQure's strong trial results for its gene therapy AMT-130, which showed a ~75% slowing of Huntington's disease progression over three years [3] - The SmartFlow Cannula system provided by ClearPoint Neuro will be utilized in uniQure's treatments, indicating potential for significant milestone revenues and increased usage of their system in the future [3] - Despite its potential, ClearPoint Neuro is not among the 30 most popular stocks among hedge funds, with 10 hedge fund portfolios holding the stock at the end of Q3, unchanged from the previous quarter [4]

Core Insights - The focus is on identifying high-potential investment opportunities before they experience significant growth, emphasizing asymmetric opportunities with a potential upside of 3-5 times the downside risk [1] Investment Strategy - The investment approach leverages market inefficiencies and contrarian insights to maximize long-term compounding while safeguarding against capital impairment [1] - A strong margin of safety is prioritized to protect against capital loss while aiming for substantial long-term returns [1] - The investment horizon is set at 2-3 years, allowing the company to endure market volatility and emphasizing the importance of patience, discipline, and intelligent capital allocation [1]

Group 1: Company Overview - Kraken Robotics is a strong competitor in underwater defense and energy solutions, providing military and energy companies with underwater vision through sonar solutions [1] - The company offers power and protection via subsea batteries and LiDAR solutions [1] Group 2: Market Position - Kraken Robotics supplies critical technology for underwater operations, positioning itself as a key player in the defense and energy sectors [1]

Group 1 - The article introduces "The Undercovered Dozen," which highlights twelve actionable investment ideas on tickers with less coverage [1] - Inclusion criteria for "undercovered" tickers include a market cap greater than $100 million, more than 800 symbol page views in the last 90 days, and fewer than two articles published in the past 30 days [1]

Group 1 - The article introduces "The Undercovered Dozen," a selection of twelve actionable investment ideas focusing on tickers with less coverage [1] - Inclusion criteria for the "undercovered" list include a market cap greater than $100 million, over 800 symbol page views in the last 90 days, and fewer than two articles published in the past 30 days [1] - The initiative aims to provide insights into both large-cap and small-cap stocks that may present investment opportunities [1]