For anyone interested, an AFR article gave a balanced overview...

For anyone interested, an AFR article gave a balanced overview of DRO was updated yesterday, 4th August. I also have an article in the bottom written by the Americans on the Droneshield US listing.

Article 1: DRO ASX: Droneshield: a capital markets plaything or the real deal? (copyright link)

The SaaS offering is a key part of the group’s plans to generate recurring revenue, and the technology spend is aiming to use that for drone jamming equipment. Right now, the SaaS offering only applies to detection.

The existing tech sells well, and will continue to sell for the next several years, Vornik has said, but he wants to “skate where the puck is going”.

Whatever the pipeline, for detractors it’s hard to look beyond the top line: according to Capital IQ, consensus is for revenue in 2024 of $95.5 million. That’s expected to grow to $129.8 million in 2025.

DroneShield is a possible contender for inclusion in the S&P/ASX 300. According to Wilsons, it’s the third pick to get into the 300 following coal miner Yancoal and biotech favourite Clarity Pharmaceuticals, which also just raised capital.


Article 2: 7 Explosive Growth Stocks Set to Soar in 2024 (yahoo.com)

DroneShield (OTCMKTS:DRSHF) is an Australian company that provides counter-drone technologies to military and government customers worldwide. The stock has been very volatile, soaring to all-time highs before plummeting by nearly 50% in just over a week.

I believe the sharp pullback offers an attractive entry point for long-term investors. The rapid increase in drone usage, especially by non-Western countries, is creating a booming market for anti-drone systems. DroneShield is well-positioned to capitalize on this demand.

In the first quarter, DroneShield achieved record revenues of $16.4 million, a staggering 900% increase year-over-year. The company ended April with a $27 million order backlog and over $519 million sales pipeline. Cash receipts also hit a record $21.4 million in the first half of 2024.

However, not everyone is bullish. Some analysts argue that DroneShield is still overvalued compared to its financials. Noted short-seller Rodney Forrest called the valuation “wild” and has bet against the stock.

Personally, I’m optimistic about DroneShield’s future. The need for counter-drone tech will only intensify as cheap drones proliferate globally. The company has a strong balance sheet with $146 million cash and no debt to fuel its growth. The stock is still up 242% year-to-date, so I still consider it an explosive growth stock.