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  "documentTitle": "Red Cat Holdings, Inc. (RCAT)",
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  "notes": "The slide uses quotes from a procurement consultant and Aerovironment's earnings call to argue that the SRR program is overestimated and potentially unattractive to major industry players.",
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      "text": "That the SRR program's financial benefit to Red Cat is being massively overestimated by the market is not that controversial among other industry players who have considered competing for the program.",
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      "kind": "paragraph",
      "text": "platforms are out there and if they see something they like, then that could be the starting point for them wanting to push for [Tranche] three and what that comes back as.",
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      "text": "Basically, the SRR is a tough business and it's too small to matter. On the other hand, Aerovironment made it clear that they do intend to compete for the medium range reconnaissance (MRR) program...",
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      "text": "Another procurement consultant explained that There is no guarantee that even once the contract is definitized... the Army hasn't yet fully fleshed out how it's going to incorporate the SRR into its operational framework.",
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      "text": "That the SRR program's financial benefit to Red Cat is being massively overestimated by the market is not that controversial among other industry players... Aerovironment... said the following in its December 4th earnings call:",
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      "text": "We intentionally chose not to compete for that program [the SRR]... making money in that market and that business is not an easy thing... we see that we can deliver a lot more value for our customers and our shareholders.",
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      "text": "We intentionally chose not to compete for that program [the SRR]. It is a different set of capabilities that we strategically decided a while back that that's not a market that we're going to go very strongly on initially. There are several factors on the reasons why. A) making money in that market and that business is not an easy thing. And if you look at the financials of some of these companies, it's very evident in that regard. B) we see that we can deliver a lot more value for our customers and our shareholders with focusing on much larger and more systemic areas of demand globally that we can deliver a lot more value to all of our customers as well as shareholders. So we did not compete in that opportunity. — Aerovironment, December 4th earnings call",
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