FRAZIS: July 2024 Investment Update Droneshield had a volatile...

FRAZIS: July 2024 Investment Update

Droneshield had a volatile month. As with Nvidia, our systematic approach came in handy, and somewhat to our surprise we hit our 2.5x profit target years in weeks rather than the expected years, so reduced our position significantly over $2.

The companyreported earnings last week. First half revenues of $24 million missedforecasts of $30 million, but were still 110% higher than the same period ayear ago.

Afterappreciating 5x in a very short period of time, the stock is now a cultfavourite amongst lovers and haters alike.

This hashappened to us multiple times before. It’s certainly not the first time we’vebought a stock that rapidly appreciated, then become a battleground betweenretail investors, short-sellers, and weary/wary professionals.

One thingwe’ve learned (and now systematized) is to crystallize profits when we’resitting on large and unexpected gains.

We arestill shareholders (Droneshield is 3% of the fund as I write) and firmbelievers that the market for both drone and anti-drone technology will bevastly larger in the future.

Thecompany’s >100% revenue growth and doubling of its pipeline supports this.

Thewould-be assassin of Donald Trump apparently flew a drone over the site beforehis attack, illustrating two key aspects of the thesis:

Firstly,the importance of jamming commercial drones, and secondly, that most targetsare undefended.