Pinned straw:
Well this is huge!!!!
Disc hold IRL & SM
It just keeps giving at the moment.
Disc Hold IRL & SM
Hope the link works.
Oleg Vornik speaks about the recent contract, potential bigger deals to come and future expansion in Europe.
https://ausbiz.com.au/media/droneshields-expansion-amid-rising-defence-demand?videoId=42596
Disc hold IRL & SM
Very significant indeed @Summer12
Droneshield is really interesting, and I think is unfairly tainted by the "meme stock" label. Sure, a lot of hot "retail" money piled into based on little more than the hype surrounding drone technology and a share price that was shooting ever higher in 2024.. something that encouraged me to start selling down last year (although, naturally, well below the eventual high).
But, underneath it all, you have a business that is growing revenue at an incredible pace (an average CAGR of 76%pa in the last 3 years, albeit off a low base), and is set to do around $160m this year, which would be an increase from last year of ~178%
As of the last quarterly cash flow, they are still burning cash, but it looks like they'll hit breakeven in the near term, especially in EBITDA terms, and have a very healthy cash balance of almost $200m. Management have said fixed costs should be around $78m pa for the next little while, and with a gross margin of ~70% that means they break even at $112m or so.
The forward P/S is somewhere around 10x, which is up there, but then again they are growing like the clappers. And today's announcement shows how just one big win can really change the equation.
Of course, better or just better marketed tech can easily steal share and further big wins may not be forthcoming. Maybe there are a few operational blunders. Under these kinds of scenarios, a lot of growth CAPEX may prove unjustified, as will the current share price.
But, at the same time, if sales momentum continues apace, and costs well contained, shares could easily be said to be cheap. It's really tough to value, but my point is that you have a business with clear sales traction, a big tailwind and a well padded balance sheet -- one in which the market got way carried away with, but has since started to validate some rather bullish expectations.
I probably should have taken more notice at the start of the year when shares got as low as 60c.
Anyway, was thinking of dipping my toe back in the water as i read the announcement pre-open... but a 20% pop today has my inner tight wad second guessing himself.