Droneshield Chads!, page-112

DroneShield, an Australian defense technology company, experienced a significant share price drop after a Capital Brief article highlighted short sellers targeting the company. The article noted that DroneShield's stock price had been soaring despite the company's relatively small revenue of $9 million in the previous year

Fund managers have described the smaller end of the Australian Securities Exchange (ASX) as a "wild west" where investor sentiment often drives share prices rather than fundamentals. DroneShield's share price had climbed 422% since the beginning of the year, reaching a market value just below $2 billion. This rapid rise, coupled with the lack of substantial revenue, made the company a target for short sellers who bet on the stock price falling.

The article quoted Rodney Forrest, a fund manager who is shorting DroneShield, as saying, "It's a story stock. There are no fundamentals for why it's trading at these levels. This could end in disaster." The article's publication led to a 23% decline in DroneShield's share price, wiping out more than $500 million in market value. The company subsequently halted trading.

Sources:

• https: //www.capitalbrief.com/newsletter/droneshield-crashes-ccb8b48a-c9cf-4f37-9979-84c78a7f8728/preview/