DRO - DroneShield Limited

[fergee]

Just thought I would give this a bump. DRO I think has great potential over the next 10 years as we see political tensions heightening. The use of drones in armed conflicts and asymmetric warfare is a trend that will only increase over time as costs come down and drone technology improves.

 

[fergee]

DRO looks to have made a break out and a back test of the break out possibly on its next leg to the upside. I do worry/wonder about the gap around .19 being closed although it was made on power/high volume so it may be a good indicator of strength. If the gap were to be closed and a postive divergence on the RSI daily created I think this would be a high conviction long trade set up imo.

 

[fergee]

Also zooming out a bit to the monthly I can see a cup pattern forming. Opinions?

 

[Dona Ferentes]

taking out sellers

..... following a competitive tender, its DroneGun TacticalTM product was selected as the preferred solution by the European Union police forces. The process was run by Belgium Police, with an EU-wide framework. Sales, training and local support will be managed by DroneShield’s Benelux region partner ForcePro BV

up 60%

 

[frugal.rock]

One not to forget about.
Recent SPP closed. August announcement still to play out with further potential when reading between the lines.

31st August, 2020. ASX Announcement.

DroneShield Ltd (ASX DRO) (“DroneShield" or the “Company”) is pleased to announce it has received
orders from Government agencies of two separate European countries for its products.
The first order is for the Company’s DroneSentinelTM multi-sensor detection system, powered by the
DroneShieldCompleteTM Command-and-Control (“C2”) engine, and a DroneGun TacticalTM portable
counterdrone solution, from a significant European Government customer, following up on the smaller order from an existing customer announced on 24 July 2020. The second order, from the Ministry of Defence of a different European country, is for several of the company portables (DroneGun TacticalTM, DroneNodeTM and RfPatrol MKIITM).
At approximately $750,000 in sales proceeds, these are additional orders for an evaluation, expected to lead to further deployments with these customers. The second order is the first sale in that particular country and is further strong validation of the demand for the Company‘s products and capabilities across Europe and globally. The Company’s strategy is to build upon these initial sales to customers, to achieve follow on orders at mass scale, once its products have been evaluated against requirements by these high calibre end users.

 

[frugal.rock]

10 September 2020 ASX RELEASE
US Department of Defense Funding
DroneShield Ltd (ASX DRO) (“DroneShield" or the “Company”) is pleased to announce it has received
funding from the United States Department of Defense (“DoD”) for targeted development of its
DroneShieldCompleteTM Command-and-Control (“C2”) system.
The section of the DoD, which has awarded the contract, is a new customer for DroneShied. The funding
was awarded through a sole source contract.
DroneShieldCompleteTM is an intuitive and feature rich C2, providing real time alerting, tracking and reporting
information for native DroneShield as well as third party sensors. The DoD is working with DroneShield,
providing funding for an agreed list of feature enhancements, for a project expected to span over several
months. Importantly, following that period, the DoD is expected to make multiple purchases of DroneShield’s
C-UAS equipment, which would run on the enhanced DroneShieldCompleteTM C2.

Happy to have purchased on open today....

 

[frugal.rock]

Aye carumba.
My entry timing is not my problem, my exit timing is....

 

[aus_trader]

Interesting FR, it's having a big volume going through today...

Possibly due to a breakout to the upside or due to announcement ?

Let's be realistic, it's all caused by FR, talk about being Frugal !

In fact on a longer term timeframe, DRO is having the biggest volume turnover ever...

 

[frugal.rock]

The DoD is working with DroneShield, providing funding for an agreed list of feature enhancements, for a project expected to span over several
months. Importantly, following that period, the DoD is expected to make multiple purchases of DroneShield’s
C-UAS equipment, which would run on the enhanced DroneShieldCompleteTM C2.

In fact on a longer term timeframe, DRO is having the biggest volume turnover ever...

I like it, I like it a lot.
(Jim Carrey)

 

[frugal.rock]

The DoD is working with DroneShield, providing funding for an agreed list of feature enhancements, for a project expected to span over several
months. Importantly, following that period, the DoD is expected to make multiple purchases of DroneShield’s
C-UAS equipment, which would run on the enhanced DroneShieldCompleteTM C2.

In fact on a longer term timeframe, DRO is having the biggest volume turnover ever...

Well, the foot is in the door with the US DoD now.
Drones are the future war planes...
Forget Top Gun...
It's going to be "hello HAL
versus SKYNET"
https://au.pcmag.com/electronics/34256/7-fictional-computers-that-changed-our-world

Ker Ching

 

[aus_trader]

Well, the foot is in the door with the US DoD now.
Drones are the future war planes...
Forget Top Gun...
It's going to be "hello HAL
versus SKYNET"
https://au.pcmag.com/electronics/34256/7-fictional-computers-that-changed-our-world

Ker Ching

Could develop into something with a global footprint especially if it gets well received in the US.

Definitely in the area of future defense and public safety.

I'll be keeping a tab on it. I even won an ASF monthly stock tipping comp with DRO in the past.

 

[frugal.rock]

Could develop into something with a global footprint especially if it gets well received in the US.

Definitely in the area of future defense and public safety.

I'll be keeping a tab on it. I even won an ASF monthly stock tipping comp with DRO in the past.

I suspect a few big orders will flow in over the next few months....
A little' un... but a start.

11 September 2020 ASX RELEASE
South East Asia Army Order
DroneShield Ltd (ASX DRO) (“DroneShield" or the “Company”) is pleased to announce it has received an order for a DroneSentryTM system for an Army of a major South East Asian country, allied with the West.
This is the first order for this country, and includes a complete DroneSentryTM solution, consisting of RfOne MKIITM RF Direction Finding sensors, RadarZeroTM revolutionary metamaterials radars, DroneCannonTM electronic warfare modules, and DroneOpt electro-optics systems with the proprietary DroneOptIDTM AI / machine learning engine for target and payload visual recognition, ID and tracking.
The sensor feeds are fused together using DroneShieldCompleteTM Command-and-Control (“C2”) engine, enabling an intuitive user interface and a rich reporting functionality of drone threats.
As a full capability initial order, it is expected to lead to additional multi-million dollar sales following its deployment.

In my opinion, the ball is rolling and gathering momentum with cutting edge technology....I wonder if I am
allowed to buy one as a toy...
(non weaponised of course)

Still held. I was easily able to sell this morning at 0.24 for over 71% gross profit in a little over 24 hours...

 

[frugal.rock]

Further statement from this morning's Ann.

Oleg Vornik, DroneShield’s CEO, has commented,
“Combined with the recent sales to multiple European Government users, and yesterday’s announcement of a contract with the US Department of Defense, there
is now a clear momentum in customer adoption of our products.

Our world-leading product offering meets the requirements of some of the most demanding military and Government users globally.

Combined with our on-the-ground representation in over 100 countries globally, we are now starting to see our extensive pipeline converting into end user orders.”

At the end of the day, they are drones that will inevitably have a considerable percentage meet a destructive demise from opposing factors.... let's buy MORE.... and we need a few spares...

 

[aus_trader]

Wow, great news flow from DRO.

They are selling to the West and the East. When I looked at this company a while back they were still in R&D stage and although concept was great, commercialisation and making sales seemed like a fairytale. Things are happening quickly of late...

I might consider putting on a small position for the long term on a pull back.

 

[kenny]

Is there a recurring revenue model in their business (eg consumables, maintenance) or are they selling one-off purchases?

 

[frugal.rock]

Is there a recurring revenue model in their business (eg consumables, maintenance) or are they selling one-off purchases?

That's a good question Kenny that I directly don't know the answer for.
However, the very nature of a drone in itself is of a recurring model nature. IE; Birds fall out of the sky every day....
Further, software and firmware upgrades and usage licences would have to be normal procedure, as would be certified trained personnel to operate and also can't have this stuff getting into the wrong hands. It's really some serious equipment...
I will endeavour to do more research on the company, in due course, mainly out of interest.

 

[frugal.rock]

A you tube from December 2018 with Droneshield and ABC discussing drone intrusion at Gatwick Airport.

 

[kenny]

re recurring revenue; my concern would be a Swimming pool seller model. Once a customer has one (ten?) they won't need more.

I'd be happier seeing management discuss a revenue stream building off the data gathered from the devices themselves and selling back to customers as insights eg what drones are being taken down? What frequencies used? How quickly do each model take to bring down?

 

[aus_trader]

re recurring revenue; my concern would be a Swimming pool seller model. Once a customer has one (ten?) they won't need more.

I'd be happier seeing management discuss a revenue stream building off the data gathered from the devices themselves and selling back to customers as insights eg what drones are being taken down? What frequencies used? How quickly do each model take to bring down?

I suppose there might be software/hardware upgrades and perhaps other gadgets they can on sell to customers...

 

[galumay]

Nothing has really changed since i last looked at this. Its still a horrible business though, take out the increase in grants and incentive payments and the loss was much the same despite a lot more revenue. Still burning through cash.

Without the narrative there is not much there, and I have learnt the hard lesson over time that narrative without at least positive FCF is not an investible business. Where I am interested, I will watch for first of all a couple of quarters of positive OCF, and then if they can make the move to sustainable profitability and a few quarters of positive FCF, then I will look deeper.

Of course that doesnt mean speculators wont make money buying shares in DRO, as long as Mr Market has faith in the narrative these things can have strong momentum. Just be careful though because there is nothing intrinsically supporting price action reliant on narrative so they can destroy capital quickly.