Let’s have a quick look at some announcements from today.
Droneshield ASX:DRO
Revenues are rising but on a per share basis they’ve actually fallen due to the large capital raise and SPP in April. Operating cash flows have collapsed as they build inventory. Staff costs have increased from $3.5M to $6.2M from the corresponding quarterly 12 months ago. This is a pretty uninspriing result considering all of the hype around this company in recent months.
The parabolic chart is doing what parabolic charts eventually do – collapsing. It’s near impossible to apply support and resistance to parabolic charts so the next best thing is to use a Fibonacci retracement. I generally only become interested in parabolic charts when they retrace to the 61.8% level which is around $1.08. They’re currently at the 50% level which has provided some resistance today. The next few weeks will be very interesting.
Iress ASX:IRE
The market likes this result and has pushed the price above the resistance level around $9. The trend may finally have changed for this company which was a disappointing performer in 2022 and 2023.
Neither company has significant short positions with ASX:IRE ranking 231st and ASX:DRO 384th.
Commonwealth Bank ASX:CBA
There was no announcement today but I thought I’d quickly share an observation about ASX:CBA. You may have heard a lot of commentators talking about ASX:CBA as being expensive based of their Book Value. Book value is simply the equity of the company which is calculated by subtracting total liabilities from the the total assets of the company. This is one method of valuing a company but isn’t always the most appropriate way to do so.
This is how ASX:CBA measures up according to my Book Value valuation model.
Needless to say, this supports the calls that ASX:CBA appears expensive on a price to book measure of valuation.
Disclaimer: This information is provided purely for educational purposes. It takes no account of an individual’s personal financial circumstances and hence can in no way constitute financial advice. The above data may be subject to errors or inconsistencies for which the author takes no liability. It is imperative that all investors do their own research or if they need advice, seek it from a qualified financial adviser.
Announcements July 22