It looks very much as though the very popular $DRO (+19.94%) will soon return to the level it was at before the hype.
Today, too, another surprising personal matter was announced, causing further uncertainty and a massive sell-off.
Droneshield shares lost 20 percent on Wednesday and the former defense high-flyer has lost 70 percent since its record high. A controversial personnel matter is making the mood among investors even worse. If the crash continues: How much further can the share go?
US CEO Matt McCrann has surprisingly announced his resignation. He will be leaving the company with immediate effect. McCrann, who had been with Droneshield since 2019, thanked the company on LinkedIn. He now wants to spend time with his family, after which he will be open to new projects.
The response from the company was lukewarm. The press release is five lines long, CEO Oleg Vornik thanks McCrann and wishes him all the best. What remains is guesswork. And if there's one thing the stock market hates, it's exactly that.
It is the next strange incident at Droneshield within a few weeks. Vornik and two other managers recently sold their entire share packages. In addition, the company had to retract an announcement that referred to contracts worth 7.6 million Australian dollars (4.2 million euros). It later became clear that these were already known contracts.
Droneshield was a big hit on the stock market for months - the share gave AKTIONÄR readers a 360 percent gain before it was stopped out. The company manufactures devices that use jammers to take drones out of the sky. These products, also known as jammers, are used in Ukraine and other countries.
Vornik has so far been a great communicator. The CEO hardly missed an opportunity to rave about the potential of the jammers and Droneshield's expertise. The company's investor presentations were always impressive. This makes his non-communication all the more unsettling for the stock market.
"Vornik's silence is a betrayal of retail investors, who rightly wonder what the company's top management knows that they don't," writes Louie Douvis, editor of Australia's leading business magazine Financial Review. "As concerns grow among potential buyers about the sustainability of Droneshield's technological edge, as Financial Review reported on Wednesday? Does Vornik continue to believe, as he told investors in October, that Droneshield's sales could reach $1 billion within five years?"
Vornik will read Douvis' report. He will realize that investors want answers - fast. He can't take his time until the fourth quarter figures in January.
