Investors Love These Modern-Day 'Flying Boat' Companies
Doc's note: Flying boats helped change the outcome of World War II...
As Marc Chaikin – founder of our corporate affiliate Chaikin Analytics – explains today, a major innovation in seaplanes gave the Allies an edge in the war... changing the course of history.
And now, modern warfare is seeing a new wave of advancement thanks to one technology in particular...
Nobody expected a "flying boat" maker to help beat the Nazis...
But thanks to an Englishman named Reginald J. Mitchell, that's exactly what happened.
While growing up in Staffordshire, England, Mitchell wanted to become an engineer.
He couldn't afford to go to a university, though.
Instead, at age 16, he became an apprentice at locomotive maker Kerr, Stuart & Company. And at night, he learned engineering and math at a local technical college.
After five years, Mitchell was ready to move on. So he joined Supermarine Aviation Works.
At the time, Supermarine built high-speed racing seaplanes – also known as flying boats. These seaplanes competed in global races to see which country had the fastest aircraft.
Mitchell rose quickly up the ladder at Supermarine. Within four years, he became chief engineer.
And over the next 16 years, he designed 24 aircraft for Supermarine. His most important design came in 1933...
It was called the Type 300. And it used a relatively new material called "duralumin."
Duralumin is a lightweight, high-strength aluminum alloy. It contains copper, manganese, and magnesium. This mix gives it the strength of steel but keeps it resistant to rust.
The Germans first discovered duralumin in 1906. But Mitchell put it to practical use in his Type 300. It was lighter and stronger than anything ever used in high-speed aircraft.
Mitchell's design also used a stressed-skin structure. That allowed for thin, smooth wings with fewer bumps. And it led to less drag, more speed, and better control.
Mitchell obsessed over making the world's best plane. He even got his pilot's license so he could test the Type 300 prototype himself. And he flew at speeds up to 349 miles per hour.
Mitchell did all this while battling rectal cancer. Doctors diagnosed him with the disease the same year he designed the Type 300. He died roughly four years later.
But fortunately, Supermarine carried on with Mitchell's work...
Innovation in Air Power Helped Save Britain
Before testing was even finished on his creation, the Royal Air Force ordered 310 planes. And over the next decade or so, the company produced roughly 20,000 more.
This plane became known as the Supermarine Spitfire. And it helped change the course of World War II. Here's what it looked like...
By the summer of 1940, the situation in Europe looked bleak...
The Nazis and leader Adolf Hitler invaded the Netherlands and Belgium in May as part of their Blitzkrieg attack. Then, that June, France surrendered to Hitler.
Hitler planned a full invasion of the United Kingdom called Operation Sea Lion. His plan included 250,000 troops and 35,000 vehicles.
But first, the Nazis needed to wrest control of the skies from the Royal Air Force. That would allow them to land their ships along the United Kingdom's shores.
Fortunately, the Supermarine Spitfire never let that happen...
Mitchell's plane flew faster than the Messerschmitt Bf 109, the German Luftwaffe's main fighter aircraft. It also climbed higher into the skies.
That gave the Royal Air Force a major edge.
During the Battle of Britain from July to October 1940, the Royal Air Force shot down 529 enemy aircraft. And they lost just 230 planes.
This decisive victory crushed the Nazis' air campaign. And Hitler called off Operation Sea Lion.
Put simply, Mitchell's use of advanced alloys changed the course of history.
Of course, the Supermarine Spitfire is just one example of the importance of new technology in combat. Militaries across the globe are constantly innovating.
More recently, we've seen inexpensive Ukrainian drones throw Russian forces into disarray. And the war with Iran is showing the strengths – and weaknesses – of AI in combat.
Many of the companies behind these technological advancements are in the aerospace and defense industry.
And it's no surprise that the Power Gauge says this industry is "bullish" right now...
Our system rates 82 stocks in this corner of the market. Of those, 15 get a "bullish" or better grade, while 10 are "bearish" or worse.
Amid all the geopolitical turmoil, it won't be a straight line higher for these stocks, of course...
But right now, the Power Gauge sees plenty of "bullish" opportunities in the aerospace and defense industry. Keep paying attention to this corner of the market today.
Good investing,
Marc Chaikin
Editor's note: We've seen major advances in AI over the past few years. But, according to Marc, the next major wave in AI is on the horizon. On Wednesday, Marc – alongside Jeff Brown – is laying out exactly how investors can get involved now, including a way to gain exposure ahead of a major IPO and a smaller, under-the-radar company tied to the trend.