Depends on how you define soon. Usually growth stocks don't have...

Depends on how you define soon. Usually growth stocks don't have such a significant focus on profit - grow first and then once you reach critical mass the profits come. Valuations include this expectation which is strongly impacted by RFR and the amount of debt. Big plus for us is we have no long term debt.

DRO itself as a Growth company has had a fantastic 2023 to follow up a solid 2022. Each year has built on the last, although between 2018-2021 there wasn't a lot to be excited about and our cash burn and subsequent Capital Raises were disappointing however, when you're investing in this space that is a more common outcome than not.

So factually we've increased revenue YoY for the last 4 years with this last year likely being at least a 4x increase - this year can be slated as the materialization of the 'hope' into fact from a revenue perspective. This revenue has come at gross profit margin of 70%+ which is very attractive.

The big question mark is - can we back it up? Both the Ukraine and Israel conflicts have heavily driven sales with a suspected $33m sale to the DOD being part of a $B aid package to Ukraine. If that conflict comes to an end or support from the US loses stream then potential for re-sale is low. We then face into a 2024 where revenue may go backwards, while costs go up due to expansion of plant, production capacity and talent.

Unlike other products like FMCG where you can reliably project sales MoM and YoY using external or observable measures (go check out foot traffic to the store or Google search data) we have effectively 0 visibility on the health of our prospective future sales.

Those risks noted, I believe there is more fact than hope at today's price. Should we cross into the 40-45c territory then i'd agree. Given our cash position, I would be seriously disappointed and surprised if a Captial raise occurred down the track - given the short contract fulfillment timeframe even a significant order ($50m+) will likely be managed without any additional Capital required.

Even still should this occur, the captial raise will be at a significantly higher amount than todays price given our historic responses to large sales. Jumping in at that point wouldn't make better sense than acquiring today as the main risks wouldn't have been addressed. The time for your "bottom drawer" approach passed around 12 months ago (~12 Dec). You will likely however, have additional entry points later down the track as the stock tends to ebb lower after periods of limited news.