Patterns - If you feel like DRO misled you - And what to do now

I have a busy day but wanted to add my opinion since these posts seem to be useful to people.

I noticed a lot of people on the board feel mgt misled them. You are not the first. Founders John Franklin and Brian Hearing sold at a loss relative to IPO price. Eagle's View and Regal also sold at large loss.

No one takes these big losses lightly. From the looks of this board many of you are upset too. Here is why I think you have a right to be

1. DRO said they were no longer announcing small sales
2. DRO made announcements of small sales. test unit sales to governments. this is not new! DRO has been dealing with US govt since day 1
3. DRO announced a non-sale. This airport had successful deployments with other providers too
4. DRO seemed to coordinate media coverage.
5. DRO did similar things last year when they raised. Worried about being diluted shareholders asked mgt if dilution was coming.
6. DRO Mgt assured no raise was needed.
7. You can be nearly certain they were planning a raise. I thought they were so I sold my shares at 18c.
8. DRO raised.
9. I suspect DRO will argue no raise was NEEDED but they did it opportunistically.

Then, the terms of the raise are disconcerting.

1. DRO raised the normal MAXIMUM amount at VERY HEAVY 26%+ discount to 5 day WVAP
2. If DRO was not in a hurry for money that was not needed they could have given current shareholders first go. They may have taken much more than $1.5m
3. Instead they only allotted 30k worth of shares for 50 shareholders
4. Holders must pick up the 600k bill + options to dilute at this heavy discount.
5. If DRO had "high conviction" about the Saudi sale, BT, or Europolice deals it would have been more favorable to get a loan than dilute so much
6. These instos get first crack. They get their shares first and sell them back to regular shareholders on Friday while you have to wait a month
7. In short. DRO diluted current shareholders to an extreme level, at an extreme discount. and gave first priority to outsiders. It will be important to see who these instos are. With any luck one will have to file paperwork as a 5%+ shareholder.

Does any of this bother you? If not you can stop reading this post. If you feel like you they lost your trust:

1. If you only want to deal with mgt you feel like you can trust. and you do not trust DRO mgt. Then sell.
2. If you feel like management did something wrong then report it to ASIC. You will not be the only one.
3. If you made an investment decision based on DRO guidance you may want to speak with a lawyer.

You can still make money

1. DRO. to me. tends to have big runs on little news. I sold into what I thought was the last one.
2. 75m shares traded an 80% price increase on 300k in sales - was totally unsustainable
3. Something similar happened last year on the BT deal which was supposed to be $10m in sales by now and the Saudi deal which was supposed to be done a long time ago.
4. So look for patterns. You can take advantage of that to sell your shares for a profit.

THE WORST thing that you can do in my opinion

1. Be caught in one of these pumps. Read the above.
2. In my opinion the Saudi deal adds little value to DRO. Make it makes it worth the 15c a share but no more. IF successful it will take years. DRO thought the $3.2m sale would take 6 months and it has been 27 and still not paid for. Distributors are expensive. DRO may never get paid.
3. Based on patterns I think price will run if a big sale is announced. People with shares will create momentum and momentum traders will join the fray. You might get FOMO watching it go to 20, 25, 35, even 50c. Do not try to jump in the middle. You want to be the one selling into the pump not buying.
4. DRO has 325m shares and 50m options. I do not see a way it will stay at or above 50c or even 30c based on a single 70m sale that will take years to complete. EVERYONE is lining up to sell shortly after that sale.

I would like to get more into the last point more. what is the ceiling for DRO. but I have to run.