Ann: Monthly Activities/Appendix 4C Cash Flow Report, page-44

First 44 Last

Share
Profile

Follow
gruntov

173 Posts.

40

17/01/24

13:11

Post #: 71922411
Share

Originally posted by Mayi: ↑

Apologies if I wasn't clear, I meant a takeover by DRO since that's what you referred to in the original post.

Undoubtedly, DRO will expand their product offering with anti-drone related products, but I would be very surprised if they move outside their core interests. I am not a fan of the way DRO management treats shareholders; however, I am a fan of the way they have target their market and grown sales.

Management is priming DRO as a takeover target (probably for Thales). It just needs to become a bit bigger and demonstrate a history of being profitable. If that occurs DRO will become very profitable for both management and Thales, and hopefully for shareholders too.

The constant dilution of shares and greed by management is adding a lot of overhead, which lowers the value of the company and hence the share price, and Thales will take full advantage of that as it will extract tremendous value through so-called synergies.

For example, the first thing it will do after a takeover is replace Oleg. DRO has about 100 or so employees and they will be able to replace him with a line 2 manager that they will pay about 500k pa. Oleg's package has worked out at about $5 M per year so that saving alone justifies the 30% share premium that they'll have to pay. Then they'll consolidate the sales teams and integrate all the administrative functions into their existing system giving a whole bunch of extra savings, lose all the overheads of being a listed company as well as other highly paid executives and the board.

Oleg will do what Peter James (the current Chairman) did after selling out of Nearmap and joins boards of other ASX listed companies.

Takeovers usually work out for shareholders, but not always. As I have posted before Nearmap's worked out very badly for many shareholders.

My view is that although DRO is currently running red-hot (up again today) and that may or may not continue. I hope it does for the sake of existing shareholders.

As I have advertised I am out of the stock (at least at the moment) and have always said I take a much more conservative attitude than most posters here and am happy to miss on a big gain if the risks become too high (actually I've already had a big gain with DRO - percentage-wise that is, as it's always been too small for me to invest in seriously). I have always found that my big winners come from stocks with good management that are generously priced (usually because of an overaction of some kind). My big losers have always been from stocks that I think are going to shoot the lights out and I've been drawn in by big promises.

Expand

Ok, thanks for the explanation.

I'm thinking a takeover by a non Australian defense contractor, who might look at this as a nice ad on to their current business.
Clearly, imo, drones are here to stay, and have fundamentally changed how wars will be fought going forward.

Cheap offensive drones are prolific.

If you have something to defend, you are going to need drone defense, whether as a nation, or even as a large business.

Ican see drone defense being common on shipping, on each ship.
Too expensive for a navy to be everywhere.

I'm excited to see where AI takes this, even by 2030.

DRO Price at posting: 41.5¢ Sentiment: Buy Disclosure: Held
2 Upvote

1 Great analysis

Reply

Top Stories

QHL

Aerospace smallcap Quickstep Holdings jumps nearly 100% after 40cps takeover offer

C29

C29 Metals wins Kazakhstani uranium drill run green tick, Kazatomprom talks mature

PFE

Pantera begins drilling of maiden test well at Smackover

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

Palladium's the newest geopolitical hot commodity. But ASX exposure is limited

There are more pages in this discussion • 1 more message in this thread...

First 44 Last

Add DRO (ASX) to my watchlist

(20min delay)
Last 85.0¢		Change -0.105(11.0%)		Mkt cap ! $741.2M

Open	High	Low	Value	Volume
95.0¢	95.0¢	84.5¢	$17.80M	20.21M

Buyers (Bids)

No.	Vol.	Price($)
4	37993	85.0¢

Sellers (Offers)

Price($)	Vol.	No.
86.0¢	349403	7

View Market Depth

No.	Vol.	Price($)
3	27993	0.850
8	170951	0.845
22	114132	0.840
6	170776	0.835
11	71818	0.830

Price($)	Vol.	No.
0.860	349403	7
0.865	96001	3
0.870	221902	9
0.875	219438	4
0.880	2948	1

Last trade - 16.10pm 07/11/2024 (20 minute delay)

DRO (ASX) Chart

Ann: Monthly Activities/Appendix 4C Cash Flow Report, page-44

Aerospace smallcap Quickstep Holdings jumps nearly 100% after 40cps takeover offer

C29 Metals wins Kazakhstani uranium drill run green tick, Kazatomprom talks mature

Pantera begins drilling of maiden test well at Smackover

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

Palladium's the newest geopolitical hot commodity. But ASX exposure is limited

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Ann: Monthly Activities/Appendix 4C Cash Flow Report, page-44

Top Stories

Aerospace smallcap Quickstep Holdings jumps nearly 100% after 40cps takeover offer

C29 Metals wins Kazakhstani uranium drill run green tick, Kazatomprom talks mature

Pantera begins drilling of maiden test well at Smackover

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

Palladium's the newest geopolitical hot commodity. But ASX exposure is limited

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News