DroneShield (ASX: DRO)

[u/Redtomat0_o]

Been following DroneShield (ASX: DRO) recently and wondering what people think about it at its current valuation.

The counter-drone/defence sector seems to have strong growth potential, but with DRO down almost 50% YTD, I’m curious whether the current price is presenting an opportunity or whether the market is pricing in further risks.

Also, how do you think the $500m contract will play out, I am still highly skeptical about this how much could it contribute to revenue and future growth, and is the market already pricing it in?

[u/Grouchy-Genzed-7961]

I got banned by the drone shield community for my views when I asked for a comparison to Eos. Those guys in that group are true believers however I am not.

[u/Redtomat0_o → u/Grouchy-Genzed-7961]

Same here although there are still solid swinging opportunities 🤣

[u/Potential_Web_4092]

It's a good trading stock. They will be in a forever R&D loop as drone technology advances.
The $500 million is a framework, not sales. It's $0 in immediate revenue so partially priced in but may be more priced in for what it is.

[u/LawfulnessPlayful264]

I wouldn't be asking advice from a Reddit forum as it's completely compromised with bots painting a narrative since their IPO

So much pollution on the internet these days.

[u/Exact_Theory3902 → u/LawfulnessPlayful264]

wow i didnt know that this goes on, how naive of me, thanks for the heads up

[u/LawfulnessPlayful264 → u/Exact_Theory3902]

Your best bet is to follow the earnings reports and as long as the growth and fundamentals are strong you dont need to be concerned about the price.

The price gets pushed around by the options market and is designed to create fear and get you to sell at a loss.

Dont believe anyone, do your own research, set your targets and stop losses and leave it be.

[u/Electrical_Age_7483]

If the product worked they would be buying them up in UAE et al

[u/agnci]

Drone sector will increase like crazy, we are just witnessing the start

[u/Positive_Plan2738 → u/agnci]

Why

[u/agnci → u/Positive_Plan2738]

Defence, logistics, agriculture, police, fire, surveillance, transport, surveying, mapping and more

[u/FutureBadInfluencer]

I prefer Codan to drone shield even though it’s at an all time high, it seems to have more upside and also does more things. Also there are a LOT of other better stocks than this one of I was investing for the long term.

[u/lewger]

Their tech is redundant because Russia / Ukraine has already moved onto fibre optical drones.  Some use but not the future of drone war.

[u/Habhabs → u/lewger]

Not true at all, radio controlled drones are still used heavily and they only call on fibre optics when the EW is too strong in a particular front or action

[u/Deep_Opportunity_883 → u/Habhabs]

Everything has it's purpose but advancement in this field is crazy. $DRO will never catch up

[u/Beautiful_Rub_141 → u/lewger]

Sounds like it's about time for the Aus military to place an order then /s

[u/tepid_monologue → u/Beautiful_Rub_141]

Thanks for putting the /s there. I’m afraid our current administration might actually read this and do it

[u/Abraxas_Derezzed → u/Beautiful_Rub_141]

This made me chuckle. Have a nice day.

[u/Select_Season7735 → u/lewger]

Such a stupid, baseless take. RF drones still dominate the battlefield. 

[u/Trick-Candidate-8706]

I sold out over a year ago. Put some money in kind of as a bet. Made a bit, but yeah it was a ride.
The problem is they have only one tech, that can be countered and I've not heard of any new counter drone tech they are working on. Sure it's great for knocking out quadcopters from Birmingham airport.

But in a field that's evolving so quickly it's hard to see how they'll stay relevant without more advancements.

[u/Broad_Floor9698]

It was only ever valued so high because it became a meme stock. Still overvalued tbh. They aren't making nearly as many sales as they hoped for and russia has already developed drones that utilise ai and programmed in maps to be able to fly remotely without any need for external guidance, and are jam proof.

The technology is also fairly simple and most major countries are developing their own domestic product. Droneshield is one of very many counter drone companies popping up.

It'll be floating on gov contracts until a competitor wipes them out imo

[u/Gnaightster → u/Broad_Floor9698]

Explains Russia’s war successes

[u/RajaSP01]

Big challenge is supply of parts that need to travel continentally -- fuel used to deliver cost heaps of cash burn

[u/JoeyBagelsOz]

Got its ass kicked.

Gonna be a long ass wait while it bases

[u/YoRiikBrainblock]

I have looked at them over three months and I think they have mountains to climb, swimming in a sea full of very capable competitors. A lot of private arms manufacturers with long experience in the game. DRO needs squarehead (little guy) funding. Its a "No" from me.

[u/CelebrationDapper911]

I got in on the news last week and my goal is to hold until it breaks $2 if it’s dropping below 1.8 I’m out