Yep, it can be a great business model if they can get them to market and sell them in sufficient numbers. The share price reflects the fact that they are yet to convince the market that they can get past this execution risk. I hope they can and I like what I have read.
I do believe that they are in an important segment of the market. One which has been underestimated for too long. Cheap delivery systems used in large volume is now proven to offer a multiplier effect. A competitor may outnumber you on the human resources front and have access to contract labor but small unmanned delivery systems can do the job much cheaper and at lower risk to your own staff on the OH&S side of things.
Be careful about any assumptions on the repeat order side of things. An entity may be inclined to buy up big to establish their delivery fleet but most of them will sit there as pure capability and not actively involved in actual delivery. Unlike other logistics businesses, success in this industry is measured by not needing to actually deliver anything and your competitors just knowing that you can if you need to.
A3D Price at posting:
6.4¢ Sentiment: None Disclosure: Not Held
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