This article from Streetwise Reports analyzes DroneShield Ltd., a company specializing in drone countermeasures, and its recent stock performance. The author, Clive Maund, argues that despite a recent dip in the share price, the company remains on a strong growth trajectory, making it a potential buying opportunity.Key Points:
• DroneShield's share price experienced a significant decline after a period of parabolic growth.
• The author attributes the drop to speculative interest and fear, not fundamental changes in the company's prospects.
• The company continues to showcase rapid revenue and cash receipt growth, with a substantial pipeline of government and commercial customers.
• The article highlights the company's expanding global reach and its comprehensive business model.
• The author suggests that the recent dip may present a buying opportunity for investors, particularly if the price dips further into the parabolic uptrend boundary.
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to find the article is:
https://www.streetwisereports.com/article/2024/07/25/drone-stock-on-a-growth-trajectory-despite-dip-expert-says.htmlAlthough we sold
DroneShield Ltd. (DRO:ASX; DRSHF:OTC)at a good profit in May, we sold too early and sadly missed out on a spectacular parabolic ramp, which was all the more impressive given the number of shares in issue. However, as we can see on the latest 1-year chart below, speculative interest became feverish, which drove the price into a vertical blowoff move — once greed turned to fear, investors jammed the exits trying to lock in what was left of their profits, and a precipitous decline ensued.Streetwise Company Fact Sheet
2024/7/26 9:14:13
(DRO:ASX - DRSHF:OTC)
Frequency
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Combination chart with 2 data series.QuoteMedia Interactive chart.The chart has 1 X axis displaying Time. Range: 2024-04-26 09:08:36 to 2024-07-28 04:49:24.The chart has 2 Y axes displaying Price and Volume.PriceVolumeMay 2024Jun 2024Jul 20241201 000k©quotemediaEnd of interactive chart.Analyst coverage
Shaw and Partners—Abraham Akra 1 Bell Potter Securities Ltd—Daniel Laing Newsletter coverage
— Streetwise Reports Articles
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Naturally, someone had to be blamed for this, and a scapegoat was found in the form of Rodney Forrest, a Blue Mountains-based manager of a family office who apparently put out a tweet then gave an interview saying the $2.60-a-share company was on a "wild" valuation that "could end in disaster."
His expanded reasoning: that DroneShield's price-to-earnings multiple was (and remains) very high." This was the only reason found for the drop, but as we know from technical analysis, once a stock goes up like DroneShield had it was basically a balloon in search of a pin (or a lighted cigarette) or one Rodney Forrest who ought to feel very flattered that he has been ascribed such market moving powers.
But here's the thing, the company is still on a stellar growth trajectory that has not been changed one iota by the plunge in the share price over the past week or two.We'll now take a look at a couple of pages from the company's latestinvestor deck, which only came out a couple of days ago, to illustrate this.
Our first page from the deck, page 2, shows the rapid growth trajectory of the company.
Our next page shows revenue and cash receipt growth during the first half of this year.
This page overviews the company's comprehensive business.
This page shows the government customer pipeline and its massive growth potential, which has a high probability of being realized.
This next page shows the sales pipeline in different regions of the world.
This last page provides a summary of everything above.
It is therefore viewed as likely that once the speculative froth has cleared — and this appears to have been largely accomplished by the violent plunge of the past week or two — the stock will be free to advance anew, probably after a period of stabilization and base building to allow time for sentiment to recover and it is thought probable this will occur in the vicinity of or a little above the parabolic uptrend shown on our 1-year chart.
In conclusion, it is considered time to start buying DroneShield again, especially if it dips a little further into the parabolic uptrend boundary shown on our chart.
DroneShield'swebsite
DroneShield Ltd. (DRO:ASX; DRSHF:OTC)was trading at AU$1.445 at 2:00 pm AEST on July 25, 2024, and closed at US$0.958 on July 24, 2024.
This article from Streetwise Reports analyzes DroneShield Ltd.,...
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Last
$1.40 |
Change
-0.090(6.04%) |
Mkt cap ! $1.067B | |||
| Open | High | Low | Value | Volume |
| $1.51 | $1.51 | $1.36 | $35.85M | 25.56M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 16 | 139470 | $1.40 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.41 | 14 | 1 |
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| Last trade - 16.10pm 26/07/2024 (20 minute delay) ? |
| DRO (ASX) Chart |