DRO - Chart and TA., page-231

My point is that the market as a whole is demanding more of DRO than most HC posters.

I agree that DRO is on track to profitability which is why I hold the stock. However, being on track is no guarantee that it will stay on track - many companies have had promising trajectories and fallen by the wayside. Many professional investors take a more cautious approach and want to see more before they commit. This is why the SP has not been bid up to the levels that many posters believe it should.

There is no doubt DRO has had a really good year and will probably turn a profit on the back of the $33 M deal. However, DRO doesn't have any big deals for 2024 revenue yet. They don't yet have breadth in their customer base, just a couple of really big customers. What if they no longer buy? Or choose a different supplier?

I have no idea how big those risks are, but they are not zero. Anyone who is buying the stock now is basing it on trajectory, not proven history. Trajectories change. I am not suggesting that people shouldn't buy on trajectories, but suggest a margin of safety in case things go wrong to avoid being wiped out.

My view is that DRO is a stock with a fair bit of potential, but it is not yet a long term hold because it does not have a track record of winning and delivering big contracts. It is also subject to hype which means it sometimes has a share price that is not conservative and makes it a good candidate for trading. I've traded in and out of the company a couple of times already and used the proceeds to top up my holdings and reduce my average buy price. It may be that I will get caught out of the stock when good news comes along and I miss out on a big gain. If that occurs, I might be out of the stock for good, but at a good profit. I can live with that. If it crashes, I might still get out with a profit because I bought conservatively in the first place and a couple of trades has improved my margin of safety.