DroneShield (DRO) soars over 20% while the market drifts lower
DroneShield (DRO) is up around 23% at 2pm today, bucking a broader market pullback which has gathered momentum throughout the session. It marks the defence group’s strongest rally since the 1st of October following the announcement of a $49.6m military contract with a European customer.
- The $50mn contract to provide its counter-drone equipment has added ~$450mn to the company’s market cap in a matter of hours.
The contract win is the largest since CEO Oleg Vornik dumped all of his shares sparking an aggressive sell off in the stock. The sale plus that of chairman Peter James and another director for a total of ~$70mn worth of shares not surprisingly resulted in the defence company’s operations and governance coming under intense scrutiny.
- We have no interest in a company when the board acts in such questionable fashion.
MM is neutral towards DroneShield Ltd (DRO)
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