With the third World War having now “officially” begun, companies like DroneShield Ltd. (DRO:ASX; DRSHF:OTC), which make military class drones and also drone defense technology, look set to do very well indeed.
And as anticipated on the site months ago, DroneShield is now starting to win some very big orders and is going from strength to strength.
It was last recommended on the site several days back in a Market Notebook update a couple of days before it broke powerfully higher on heavy volume, a big move for a stock with over 400 million shares in issue, which seems to be “par for the course” with Australian stocks.
We can see this move and points where we bought on the latest 1-year chart below.
Price / volume action in DroneShield is very bullish indeed, and the fundamental outlook for the company could scarcely be better. It is therefore believed to be just beginning a major bull market that should take it to much higher levels.
So we stay long. We bought at a very good entry point some days back before this latest big breakout move, and those interested in buying or adding positions would probably be best off looking out for dips or buying after a period of consolidation, although there is nothing to say that it won’t continue higher even if it now short-term overbought.
DroneShield trades in light but acceptable volumes on the US OTC market, where it gained 23.6% today.
DroneShield's website.
DroneShield Ltd. closed for trading at AU$0.325 at 11.11 am AEST on January 19, 2023, and closed at US$0.228 on January 18, 2023.
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CliveMaund.com Disclosures
The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.
Disclosures
1) Clive Maund: I, or members of my immediate household or family, own securities of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with DroneShield Ltd. Please click here for more information.
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5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of DroneShield Ltd., a company mentioned in this article.
