I see Droneshield as a short-medium term trade opportunity.

Right product, right time, great product market fit. Huge opportunity in national defense especially in Europe as well as in border protection i.e. USA/Mexico border. Opportunities are large compared to the small size of this Aussie tech company, yet they have high quality, internationally competitive products.

Not sure who will prove to be the dominant manufacturer of counter-drone technology, will it be DroneShield? It's possible but probably unlikely, perhaps given the relative simplicity of the problem, a smaller business is better positioned to find the best solution? I am not making a bet on this..

I think in the short-medium term dronesheild will continue to win some big contracts for supplying counter-drone products, the MC compared to the scope of the market opportunity and budget of their customers is very small. The story and timing for their products is very eye catching and I would expect very good SP performance on the back of big contract wins

However, as a hardware manufacturer, their operations are capital intensive and depend on continued flow of high value one off contracts. They are making minor attempts to create recurring subscription revenues, but compared to the size of the contracts they are winning, these are insignificant - management never put a $ value on recurring subscriptions for "monthly firmware updates." I consider the business high risk and will sell some or all of my position as they achieve success with new contracts and rising share price hopefully over the next 12 months.

It is possible they will become an acquisition target and end up as a department of a far bigger defense tech company but I am not relying on this.