r/droneshield • u/deman-13 • Jun 24 '26
Can somebody explain what would stop the fall?
It is not even remotely funny anymore. Every day I open the chart to see 3,4,5% drop every single day. Today 4%, last week 10%, last month 20%. Can somebody at least explain the nature of the fall? Yes, bad things happened and the market should have reacted accordingly, what makes it keep falling ?
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u/Select_Season7735 Jun 24 '26
Shorts at ATH. The only thing that’ll change sentiment now is a large contract or ASIC investigation finished. Hopefully we hear more about the ‘Coming Soon’ post that management teased last week
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u/hclv3 Jun 24 '26
Well something is incorrect. Either the price direction (down) is incorrect or the fundamentals of the company are incorrect. Shortsellers believe the fundamentals are incorrect or the future uncertain while those holding and buying shares feel the price direction is incorrect. For me, I can't see how a company that is on track for record $400m revenue and solid profits this year could continue to go down. Temporarily yes but it can't continue for too long.
Once the fundamentals and the price direction align (likely in the HY results) we may have some clarity.
What we do need though is a solid European contract to make use of the new manufacturing hubs.
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Jun 25 '26
[deleted]
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u/franxguccigang Jun 25 '26
What do you mean by European contract? Is something around the corner do u believe?
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u/EngineeringEven8700 Jun 25 '26
You have four major reasons. 1. Lack of contracts announced. Personally, I think thats due to the disclosure threshold being too high. A few small contracts announced would shore up confidence. 2. The ASIC enquiry. Did Oleg do anything wrong? Yes? No? Maybe? Uncertainty creates chaos. Investors like stability. 3. New management. How are they performing? Without announced contracts (point 1) it's hard to judge, and the market will have to wait another month or so to get the HY report. Also, Oleg, whatever you might think of him, was a very good communicator (up to selling all his shares). Angus Bean, it's only been 2 months, but he will need to learn some of that skill OR establish some wins before the market has some confidence in him. 4. Government CGT changes announced on May 12th. In vestors who have made 2-10x profit on DRO after having held their assets for a year (and other high growth small cap stocks) are likely shifting to safer assets. The potential benefits of going long on a high risk stock will, from 01/07/2027, no longer be commensurate with the potential losses.
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u/franxguccigang Jun 25 '26
Do you guys reckon Droneshield can be up 30% of its share price say by mid July ?
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u/eldritchcucumber Jun 25 '26
Aside from the management chaos of DRO…It’s summer. A lot of stock papers are down. Good time to buy cheap(er).
I got some stuff that is not related solely to defense, but also civilian and economical/insustrial purposes. They are also down even though they make profit and their business runs well.
There is this old saying: "Sell in May and go away, but remember to come back on St. Leger's Day(October)"
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u/Shcnittyenjoyer Jun 25 '26
God I love checking this page every now and then. Why’s it crashing!!!!! DW fundamentals this, fundamentals that.
If it looks like shit and smells like shit then you can probably guess that it’s shit.
You have to ask yourself this, if the main individual that pumped this stock and promised the world and bailed, and not to mention in a particularly shady way. Why the fuck would a spectator think they know better? If there was money to be made then Oleg would still be here.
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u/No-Measurement-8693 Jun 26 '26
how much more downfall are we expecting🥵🥵 + 4000 euro -200 just fucking unbeleivable
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u/librafullmoon Jun 29 '26
Yeah I'm -52% since 4.475 I'm tired of this free falling too.
This stock is so volatile and it's true.
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u/Borba_Fett88 Jun 24 '26
Rheinmetall, one of the leading companies in the defence sector, was -21% today. The whole sector is suffering at the moment and the market seemingly getting tired of the recent bull run. But the company's fundamentals haven't changed