![]() A graph of the share prices of AgEagle Aerial Systems ( UAVS), Alpine 4 Holdings ( ALPP) and Draganfly ( DPRO) illustrates this. The likely explanation for this is that investors buy and sell drone stocks of several companies at the same time. Some of the most well-known drone stocks tend to move in-sync with each other. There's evidence that other investors are using this approach as well. To spread risks, I also buy stock of other drone companies, such as, for example, Drone Delivery Canada Corp ( OTCQX:TAKOF). An approach for dealing with that is to spread the buying of shares over several companies and also over time. When investing now, though, the key challenges are that there will be ups and downs and that it's not certain which drone company will gain what share of the pie and by when. It's early innings now and a long position in any of the successful drone companies of the future could prove to be a multibagger. The drone industry is an emerging industry that is expected to grow substantially and reach an impressive size. It's that taking a position in some of the companies in the industry now will lead to capital gains in the future. ![]() My investment thesis for Draganfly is similar to the thesis for any of the other drone businesses. ![]() The total revenue for 2021 should end up between $7 and $8 million. The revenue for the first nine months of the year totaled $5.4 million, up from $2.9 million over the same period in 2020. Draganfly has recently reported the Q3 2021 earnings and the report can be found on. The market cap of Draganfly, at the time of writing of this article, has now dropped back to below $100 million. If the new shares hadn't been issued, the trading price would thus be double the current price. The share count was over 32 million at the end of Q3 2021, which was more than double the share count of one year before, at the end of Q3 2020. Note that Draganfly made clever use of the higher share prices during the rally by issuing significant amounts of new shares to the market. The run-up of the share prices seemed more of a hype than a rational event.įrom the highs in Q1 2021, which was nearly at $16 as shown in the above graph, the shares dropped back to the current price of below $2.5. The low revenue and only modest growth forecasts were insufficient to justify the high market cap of a quarter billion dollars. In a bearish article that I wrote about Draganfly in the midst of the rally, in February 2021, called " Be careful with Draganfly", I noted that the market cap of the company had surpassed $250 million, while the total revenue in 2020 did not exceed $5 million. I was lucky to own a small amount of stock of Draganfly at that time and I was able to sell it at a substantial capital gain.ĭespite the fact that I benefited from the run up, it was my opinion that the market was overdoing it when the shares went over $10. Before that time, the shares had traded around the $1 mark for a long time, but from November 2020 to March 2021, the share price exploded to reach almost $16. One year ago, at the end of November 2020, the share price of Draganfly ( NASDAQ: DPRO) started to rally. LedLopezHdz/iStock via Getty Images Draganfly after the hype
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