The Droneshield Ltd (ASX: DRO) share price is under pressure on Monday. That's despite the drone defence company reporting record revenue and cash receipts in its full-year 2022 results.

After very strong share price gains over the past 12 months, investors may be looking to take some profits off the table. And market expectations for the company appear to have exceeded what it delivered, with profitability still just out of reach.

Shares in the ASX tech company closed Friday at 35 cents. Shares are currently changing hands for 33 cents apiece, down 5.7%.

Droneshield share price slides despite record revenue

• Record 2022 revenue from continuing activities increased 59% from 2021 to $16.9 million
• After tax loss of $949,000, down 82% from the losses posted in 2021
• Entered 2023 with a record $200 million in sales pipeline
• Current cash balance of approximately $20.5 million with no debt or convertibles

What else happened during the year?

Other highlights that impacted the Droneshield share price included December's record $11 million. That was followed by another $11 million order from a different government customer in January 2023.

The company also said Russia's invasion of Ukraine is spurring demand for counter-drone equipment. Droneshield noted its successful sale of equipment to Ukraine at the start of the war.

Droneshield also forecasts that demand for anti-drone technology will remain elevated, even after the war in Ukraine ends. It said most of the world's government agencies and militaries have little to no existing counter-drone stocks, with many looking to build up an inventory.

What did management say?

Commenting on the results, and some upcoming tailwinds that could lift the Droneshield share price down the road, CEO Oleg Vornik said:

We are thrilled to report another record revenue year by a significant margin, and quickly improving bottom-line results.

2023 is expected to be a transformational year for the business, as has already been witnessed by two all-time record $11 million orders in December 2022 and January 2023, and a substantial pipeline of opportunities that we are in the process of converting.

Droneshield share price snapshot

As you can see in the chart below, the Droneshield share price has been an exceptional performer over the last 12 months. Despite today's retrace, the ASX tech share is up 42% in 2023 and up 92% over the full year.

The post Droneshield share price dips despite record year appeared first on The Motley Fool Australia.

The Droneshield Ltd (ASX: DRO) share price is rocketing on Monday, up 9.7%.

Shares in the ASX tech company closed Friday trading for 31 cents. At the time of writing, shares are changing hands for 34 cents apiece.

Here's what ASX investors are considering today.

What's piquing ASX investor interest?

The DroneShield share price looks to be getting a lift today following an announcement (labelled non-price sensitive) regarding the company's DroneSentry-C2TM (Command & Control) platform.

The ASX tech share reported it has commenced the release of a major software update to the platform to its subscribed customers.

The update – the largest in the company's history – provides the next generation of the DroneShield Sensor Fusion engine, which was redeveloped using the latest techniques in fusion, Machine Learning and data driven development.

Commenting on the update that looks to be driving the DroneShield share price higher today, chief technology officer Angus Bean said:

We have taken the learnings from the past seven years to produce our next generation software platform that will offer major capability enhancement to our existing end users and provide new users a more intuitive and functional system.

Bean said the new Sensor Fusion approach will improve the accuracy of detection information and the response reaction time to potential threats while reducing the "cognitive burden" of the operator.

"A major differentiator of DroneShield is being both a sensor maker and a C2 (ecosystem) integrator," DroneShield CEO, Oleg Vornik said. "C2 is a pure software, subscription-based product, with corresponding attractive margins and which lends itself to a rapid scale up."

Vornik added:

The C2 is a gateway to customer experience as it is the front facing part of the system, and having a sophisticated system that is embedded with a wide range of end users, enables us to control the user experience without a third-party integrator overlay, and acts as a channel to sell more systems and sensors.

DroneShield share price snapshot

As you can see in the chart below, the DroneShield share price has been on a tear since mid-December. Over the past 12 months, the ASX tech stock is now up a whopping 111%.

The post Why is the DroneShield share price surging 10% today? appeared first on The Motley Fool Australia.

A $1 million portfolio might seem like a far-off dream unless you start by investing an already large sum of money. Though, picking ASX shares with the potential for returns greater than 2,000% over the long term makes this dream much more achievable.

I know… a 20-bagger can sound outlandish — but, rest assured, it is entirely possible. In fact, 14 ASX-listed companies have seen their share prices skyrocket more than 2,000% between 2015 and now. You might recognise some of the ASX shares that fall into this bucket — including Hub24 Limited (ASX: HUB), Pilbara Minerals Ltd (ASX: PLS), and Pro Medicus Ltd (ASX: PME).

But, to tap into opportunities now to build a $1 million portfolio, I think it's essential to look at the small dogs on the block.

Searching small to make it big with ASX shares

The law of large numbers implies that it can become difficult for big companies to grow at high rates.

Put simply, it is harder to go from $1,000,000 to $2,000,000 than it is to go from $1,000 to $2,000. But in percentage terms, they are the same — both being a 100% increase. Based on this, the greatest growth is plausibly found among the small caps of the market.

Research conducted by Dede Eyesan and Jenga Investment Partners further supports this. In the book titled Global Outperformers, Eyesan looked at companies that returned more than 1,000% during the 10 years between 2012 and 2022.

As shown in the extract above, 97% of global outperformers during the reviewed decade started out as small caps — or even smaller. That is some strong evidence to support the smaller end of the market as the best place to go hunting for a chance at a $1 million portfolio.

Where I'd shoot for a million

There are two ASX shares that I believe tick the boxes needed for massive upside.

Both companies operate in large addressable markets and are in the midst of structural tailwinds. Furthermore, both have delivered exceptional revenue growth, increasing more than tenfold over the past five years.

The first company I'd consider is counter-drone equipment maker Droneshield Ltd (ASX: DRO). A $10 billion market opportunity — combined with a track record of growth, a foot in the door with the world's biggest defence spender, and a geopolitical environment conducive to greater protection measures — Droneshield has a lot to like.

It's still early days. Though, Droneshield's continued product development leads me to believe this company could take a considerable slice of a market that is becoming increasingly relevant.

Shares in the company are already up 88% over the last 12 months.

The other ASX share which I think could be primed for remarkable returns is Alcidion Group Ltd (ASX: ALC).

In my opinion, healthcare costs are reaching a breaking point globally. The cost of care is spiralling toward an amount that exceeds what the taxpayer can shoulder. At the same time, the rising cost of living could be forcing more people into the public system.

That's why I think digital patient management solutions — like those provided by Alcidion — are going to become critical to increasing productivity and controlling costs.

The company is not yet profitable. However, revenue has grown at a compound annual growth rate (CAGR) of 69% over the past four years. Given the scalability of its product, attractive profits could be simply a matter of time for this ASX share.

Shares in Alcidion are down 40% over the last 12 months.

The post ASX shares: Invest in these 2 stocks for a legit chance at $1 million appeared first on The Motley Fool Australia.

The DroneShield Ltd (ASX: DRO) share price isn't going anywhere on Thursday as the company prepares to announce a capital raise.

The stock was put in the freezer at the request of the company this morning, where it could remain until Monday.

The DroneShield share price last traded at 37 cents.

Let's take a closer look at the artificial intelligence-based drone detection software provider's trading halt.

DroneShield share price on ice amid capital raise

 It might be a long day for fans of ASX defence stock DroneShield, as the company's share price remains frozen ahead of potentially big news.

It's expecting to make an announcement regarding a proposed capital raise. That's all we know for sure.

However, reports claiming DroneShield is aiming to raise between $9 million and $11 million to fund its inventory build and grow its engineering and sales teams have emerged.  

The company is offering new shares for 30 cents apiece under a placement and share purchase plan, the Australian Financial Review reports.

The stock will remain on ice until the announcement's release or Monday's open, whichever is sooner.

Interestingly, the company described its "strong bank balance" earlier this week. It held $10.3 million in cash at the end of the December quarter. That figure had grown to $14.1 million by Tuesday.

It also brought in a record $15.6 million of cash receipts in 2022 and boasts a record order backlog of $19 million and a sales pipeline of more than $200 million.

And that might just be the start. DroneShield CEO Oleg Vornik said the company anticipates "another record year", continuing:

2023 is expected to be a transformative year for DroneShield, following our maiden $11 million sale order in December followed by another $11 million order from a different government, as the counterdrone industry continues to rapidly grow, with DroneShield as a pioneer and global leader in this sector.

The DroneShield share price has more than doubled in the last 12 months, lifting 118%. Most of that gain has come over the last seven weeks, wherein the stock has surged 95%.

The post Why is the DroneShield share price halted on Thursday? appeared first on The Motley Fool Australia.

The DroneShield Ltd (ASX: DRO) share price has been on a ripper run lately. Therefore, it might be easy to assume two directors offloading notable stakes in the company did so to cash in gains. However, there's more to the story.

The DroneShield share price is currently 32 cents. While that's 4.5% lower than it was at Wednesday's close, it's also 78% higher than it was this time last month.

For comparison, the benchmark All Ordinaries Index (ASX: XAO) has lifted 0.4% today and 4.3% over the last 30 days.

So, why have CEO and managing director Oleg Vornik and chair Peter James sold millions of DroneShield shares in the last fortnight? Let's take a look.

Why have DroneShield directors been offloading shares?

There was a selling spree among DroneShield directors earlier in January, with Vornik and James selling more than 10 million shares between them.

Vornik offloaded approximately 7.2 million shares for a total of around $1.9 million – representing an average price of around $26.38 apiece.

James, meanwhile, sold 3 million shares for a total of $796,690 – or approximately 26.56 cents apiece.

And that was a decent price compared to the stocks' recent lows. If the pair made the sales in late December, they may have received just 17.5 cents per share.

But it wasn't profit-taking that apparently led the directors to each offload a sizeable chunk of their stake in the company.

According to ASX statements detailing the sales, "a substantial part of the proceeds is towards meeting [Australian Taxation Office (ATO)] tax obligations associated with issue of DroneShield securities".

If that sounds familiar, it's probably because it is. Indeed, in June 2022 Vornik and James offloaded a combined 2.65 million stocks for 20.7 cents apiece for taxation reasons.

Following their latest sales, Vornik holds 8 million DroneShield shares – approximately 1.8% of the register – and James holds 6.3 million – or around 1.4% of the company, according to ASX data.

The stakes they sold this month represented 28% and 20% of their respective fully diluted stakes.

The post Why have 2 DroneShield directors sold off 10 million of their shares in the past fortnight? appeared first on The Motley Fool Australia.

The DroneShield Ltd (ASX: DRO) share price is heading skywards today, up 17% despite no news from the company.

The defence tech business has been on a tear of late, with its shares up 69.44% over the past four weeks.

The DroneShield share price is currently trading at 31 cents.

So, what's been sending DroneShield shares northwards lately?

Why is the DroneShield share price shooting the lights out?

DroneShield has got great momentum at the moment following a series of positive announcements.

The latest big news is an $11 million government contract announced on 9 January.

This follows another $11 million government contract awarded in December, which was described by CEO Oleg Vornik as a "transformational next step in DroneShield's growth". 

Other wins in 1H FY23 included a $2 million European order and a $1.8 million order from the United States Department of Defense.

In November, DroneShield was named Australia's 37^th fastest-growing company of 2022 in the 2022 AFR Fast 100 list.

Last we heard, DroneShield had a $50 million pipeline of sales for the December 2022 quarter. It was projecting a $180 million pipeline for 2023 and beyond.

DroneShield's amazing growth story

As reported by abc.net.au today, DroneShield has an incredible story to tell about its rapid growth since its crowdfunded beginnings in 2014.

What was initially intended to be a company providing privacy services for celebrities and hotels needing paparazzi drones detected and shooed away, DroneShield has now evolved into a significant defence technology organisation.

The unprecedented use of drones in the Ukrainian war has really amped things up for DroneShield.

Their 'drone guns' — which shoot a scrambling radiofrequency into the air to disable enemy drones — have proven invaluable to Ukrainian soldiers in preventing artillery strikes from Russia.

Prior to this, airports began buying DroneShield's products after the 2018 Gatwick Airport incident, when unconfirmed sightings of unidentified drones closed the airport and grounded hundreds of flights for two days.

Other customers include prisons seeking to prevent contraband from being dropped into yards.

DroneShield share price snapshot

DroneShield shares are up 60.5% over the past 12 months. Since listing in 2016, they are up 32.6%.

The post Why has the DroneShield share price rocketed 69% in a month? appeared first on The Motley Fool Australia.

It's proving to be a big day for the DroneShield Ltd (ASX: DRO) share price after the ASX-listed drone detection technology company announced a whopping government contract.

The $11 million order placed by a government agency customer marks a record for the defence-focused business.

And the market is reacting in its favour. After opening 17% higher at 20.5 cents, the stock leapt to an intraday high of 22 cents – marking a 26% gain.

The DroneShield share price is currently up 25.71%, trading for 22 cents.

Let's take a closer look at the news driving the ASX share sky high on Wednesday.

DroneShield announces record $11 million order

DroneShield shares are taking off on news of an $11 million order, the proceeds of which will be received over the upcoming March and June quarters.

The order will be split across multiple batches. The first will be delivered shortly and the rest in late March. It includes several different types of the counterdrone and C-UAS equipment.

Payment from each batch will be received within a month of its delivery.

CEO Oleg Vornik commented on the news driving the ASX company's share price today, saying it was a "transformational next step in DroneShield's growth". Vornik continued:

From the start of the company 7 years ago, DroneShield has demonstrated a consistent progression, first by building and then refining its product suite along with global distributor network, then moving to customer demos, followed by initial smaller sales, repeat $1 million+ sales, and now moving into $10 million+ sales territory.

Over [the] last 24 months, we have made a significant investment in scaling our operations to ensure we continue to meet delivery expectations of our customers as we rapidly scale up.

DroneShield share price snapshot

Today's gain included, the DroneShield share price has outperformed the broader ASX in 2022. The stock has lifted around 20% since the start of 2022.

Comparatively, the benchmark All Ordinaries Index (ASX: XAO) has dropped 8% year to date.

The post Guess which ASX share is rocketing 25% on a record $11m government contract appeared first on The Motley Fool Australia.

Looking to invest in ASX growth shares? Well, we have good news for you.

Australia's fastest growing companies of 2022 have been identified and they include a few names Aussie investors are likely familar with.

So, which ASX shares have been posting massive growth lately? Keep reading to find out.

Fastest growing Aussie companies of 2022 crowned

It's been a big year for some notable ASX stocks – they've been included in the 2022 AFR Fast 100 list, with two coming in among the top 10 fastest growing Aussie companies of 2022.

The list is presented by the Australian Financial Review in association with Pemba Capital Partners and PwC. It encompasses 100 companies boasting a compound annual growth rate (CAGR) of as much as 330% between financial year 2020 and financial year 2022.

5 ASX shares among Australia's fastest growers

Which ASX share will give investors exposure to the fastest grower on the Aussie bourse this year? It's WISR Ltd (ASX: WZR).

The company has been crowned the fastest-growing ASX-listed entity, coming in seventh place on the AFR Fast 100 List. The fintech stock provides consumer finance products.

It posted $7 million of revenue in FY20, growing that to $59 million in FY22. Not to mention, it surpassed $1 billion in loan originations over the three months ended March 2022.

Next up is ASX digital marketplace operator Camplify Holdings Ltd (ASX: CHL). It came in as Australia's ninth fastest-growing company. The company connects owners of recreational vehicles with hirers.

Camplify's shares hit the ASX in June 2021. It boasted nearly $3 million of revenue in FY20. That figure grew to $16 million in FY22.

Another ASX newbie has joined Camplify on this year's list, with telco and internet service provider Pentanet Ltd (ASX: 5GG) taking out spot number 25. Pentanet floated on the exchange in January 2021.

The company brought in $5 million of revenue in FY20, growing that to $16.8 million in FY22.

Just two spots lower lies Credit Clear Ltd (ASX: CCR). The company is in the fintech business, providing receivables management solutions.

In FY20, the company brought in $11 million. By FY22, that had grown to $21 million.

Finally, drone detection software provider DroneShield Ltd (ASX: DRO) has been crowned Australia's 37^th fastest-growing company of 2022.

It posted around $11 million of revenue for the 12 months ended 31 December 2021. That was up from $5.6 million in the prior period.

The post 5 ASX shares for investing in the fastest growing Aussie companies of 2022 appeared first on The Motley Fool Australia.

Two ASX defence shares are setting the bar high today.

The All Ordinaries Index (ASX: XAO) is off to a positive start, up 0.4% in early afternoon trade.

But Droneshield Ltd (ASX: DRO) is smashing those gains, up 6.1%. The ASX defence share provides drone detection and disruption solutions to governments, law enforcement and approved military customers, among others.

Electro Optic Systems Ltd (ASX: EOS) is also shooting the lights out, currently up 18% after having earlier posted gains north of 38%. Among its operating segments, Electro Optic Systems manufactures advanced fire control, surveillance, and weapon systems.

So, what's piquing investor interest in these two ASX defence shares today?

Why is the Droneshield share price charging higher?

Investors are bidding up the Droneshield share price following some strong results from the company's quarterly business update, covering the three months ending 30 September.

Among the highlights for the quarter, the ASX defence share inked a number of large contracts. These include a $2 million European order for its DroneSentry systems and a $1.8 million order for DroneGuns from the US Department of Defense.

The $5.6 million of customer and grant cash receipts over the quarter were up 103% from the prior quarter and represent Droneshield's second-highest cash receipt quarter ever.

The company revealed it has a $50 million pipeline for the final quarter of 2022, alongside a $180 million pipeline for 2023 and beyond. It said it is increasing its focus on US and Australian government customers.

As of 30 September, Droneshield had a cash balance of $7.5 million.

Which brings us to…

What's driving the Electro Optic Systems share price skyward?

Electro Optic Systems shares are leaping after the ASX defence share announced it has entered into new financing arrangements with major shareholder Washington H Soul Pattinson & Co Ltd (ASX: SOL).

The new debt facilities with Soul Patts consist of a three-year $35 million new term loan facility and an 18-month $15 million additional working capital facility.

In exchange, Soul Patts will be issued with 4.68% of Electro Optic Systems issued capital. That will boost Soul Patts' total shareholding to 9.95% of EOS' issued share capital.

The ASX defence share said the funding arrangements will enable it to continue executing its 'Program of Change'. That program was launched under new CEO Andreas Schwer, who took the reins on 1 August.

The new funding arrangements, the company said, will "ensure EOS is optimally positioned to develop its strategic growth potential".

Atop the new loan facilities, Electro Optic Systems also revealed it's recently been approached by several parties "in relation to potential strategic growth partnerships and/or capital transactions".

The partnerships relate, in part, to its core defence and space businesses.

How have these two ASX defence shares been tracking?

Despite today's big lift, both ASX defence shares have struggled in 2022.

The Droneshield share price is flat, while shares in Electro Optic Systems remain down a painful 75% year-to-date.

The post 2 ASX defence shares soaring on big news today appeared first on The Motley Fool Australia.

That's according to Aron Pataki, global portfolio manager at Newton Investment Management.

As the Australian Financial Review reported, Pataki says the defence sector is a key area he's keeping an eye on in his hunt for growth stocks amid today's rising geopolitical turmoil and environment of fast rising interest rates.

Which could throw up some welcome tailwind for ASX shares with exposure to defence spending.

Russia's war in Ukraine sparks defence spending growth

With inflation rocketing after a decade of 'stubborn absence' and interest rates rising fast following 11 years of stable or falling rates, Pataki sees the advantage returning to active investors over passive investors.

According to Pataki (quoted by the AFR):

For decades, passive investing worked very well. It didn't really matter what you invested in, everything went up, and the mantra was whenever you have a dip, it's a brilliant buying opportunity. But I suspect the world might be more complicated than that going forward. Active investors like us will benefit where you need to be far more selective.

Russia's invasion of Ukraine has spurred governments the world over to rethink their defence spending, with further growth in defence budgets widely forecast over the coming years.

Having invested in global defence giants Lockheed Martin Corporation (NYSE: LMT) and BAE Systems plc (LON: BA), Pataki said defence is among the key sectors to watch "for runaway growth".

Which ASX shares have exposure to the defence sector?

Now, there are no ASX shares that can rival Lockheed Martin or BAE Systems for their sheer size.

At least, not yet!

But a number of small-cap shares trading on the ASX do have significant exposure to increased global defence spending. Though that's largely yet to filter down to their share price performance this year.

Electro Optic Systems Holdings Ltd (ASX: EOS), for example, develops electro-optic technologies for the aerospace market. The company's biggest revenue earner is its defence segment, which manufactures advanced fire control, surveillance, and weapon systems. Despite running sharply higher in the weeks following Russia's invasion of Ukraine, the Electro Optic share price is down 79% in 2022 amid slumping revenue figures.

DroneShield Ltd (ASX: DRO) is another ASX share that stands to benefit from increasing geopolitical tensions. DroneShield provides drone detection and disruption solutions to the defence sectors as well as commercial airports, prisons, and other critical infrastructure. The DroneShield share price is down 3% year-to-date, beating the benchmark performance.

Then there's Codan Limited (ASX: CDA). Codan develops electronics solutions with a strong focus on metal detectors. Codan sells its equipment to both private and government customers. The Codan share price is down 33% this calendar year despite reporting strong FY22 results. Those results included a 16% year-on-year increase in sales and a record underlying net profit after tax (NPAT) of $100.5 million.

Other ASX shares with a footprint in the defence sector worth exploring include Bisalloy Steel Group Ltd (ASX: BIS), Austal Ltd (ASX: ASB), and Quickstep Holdings Limited (ASX: QHL).

The post Could ASX shares in this sector be set 'for runaway growth'? appeared first on The Motley Fool Australia.

The DroneShield Ltd (ASX: DRO) share price is on fire today after the company announced a record new order.

This well-timed release comes after the defence contractor's shares fell almost 20% yesterday to close at a six-month low of 16.5 cents.

At the time of writing, DroneShield shares are trading at 17.5 cents apiece, up 6.06%.

DroneShield locks in $2 million European order

DroneShield released an announcement earlier this morning advising that it had received a record $2 million order for multiple DroneSentry fixed site detect-and-defeat systems.

The package consists of sensors, radars, electronic warfare, electro-optics systems, ID, and tracking.

DroneShield said the order is from a European government customer and is the biggest contract it's had in the European market.

The bulk of the $2 million order is expected to be made in the current September 2022 quarter, with the remaining amount due when the system is installed. This is anticipated to be finalised by the end of the year.

Commenting on the news that appears to be boosting the DroneShield share price, CEO Oleg Vornik said:

This order continues our progression from developing the tech, to smaller sales, to repeat smaller size, to presently realising larger contracts. There is a substantial near-term sales pipeline in place, and we are pleased to start converting it into contracts.

This contract reinforces our position that to be a global leader in the rapidly growing counterdrone sector, a full suite of products is critical, including handheld, vehicle and fixed site offering, as we are seeing sales with separate customer sets for each of those complementary products.

Other recent updates

Yesterday, DroneShield delivered its half-year results to the market, which disappointed investors, sending its shares significantly lower.

The company reported a fall across key financial metrics despite the highly favourable macro environment.

Nonetheless, DroneShield remains focused on tapping into the US$10 billion counter-drone market.

The company has a $350 million global sales pipeline, including $100 million in projects from here until the end of 2022.

How has the DroneShield share price tracked in 2022?

The DroneShield share price has backtracked 3% in 2022 and is down around 17% over the past 12 months.

The share did reach a 52-week high of 30 cents on 3 May, before pulling back in the following weeks.

Based on today's price, the company presides a market capitalisation of $71.37 million.

The post DroneShield share price shoots 6% on new record order appeared first on The Motley Fool Australia.

This week, we bid farewell to winter… and another tumultuous ASX earnings season. So now, looking ahead to the brighter days of spring, hopefully the stock market can also deliver some healthy new growth.

Armed with a barrow full of info on which listed companies have been flourishing and floundering, we asked our Foolish contributors to let us know which ASX shares they reckon are worth planting some cash in right now.

Here's what the team came up with:

8 best ASX shares for September 2022 (smallest to largest)

• DroneShield Ltd (ASX: DRO), $88.67 million
• Airtasker Ltd (ASX: ART), $184.92 million
• Alcidion Group Ltd (ASX: ALC), $196.55 million
• Lovisa Holdings Ltd (ASX: LOV), $2.31 billion
• Core Lithium Ltd (ASX: CXO), $2.39 billion
• Lynas Rare Earths Ltd (ASX: LYC), $7.78 billion
• South32 Ltd (ASX: S32), $19.21 billion
• CSL Limited (ASX: CSL), $141.57 billion 

(Market capitalisations as of 31 August 2022)

Why our Foolish writers love these ASX shares

DroneShield Ltd

What it does: DroneShield specialises in designing and developing products to detect and disable threats from unmanned drones.

By Aaron Teboneras: The DroneShield share price sank by more than 19% on Wednesday, and I believe the stock is now trading at a bargain.

The substantial fall came on the heels of DroneShield's half-year results, which were released after market close on Tuesday. In its release, the company advised it had achieved revenue of $3.6 million, down 6% on the prior period ($3.9 million was delivered in the second half of 2021).

However, taking a closer look at some other key metrics, the company recorded cash receipts of $5.2 million in the first half of 2022. This represents a growth of 21% when compared to the $4.3 million recognised in the second half of 2021.

DroneShield said the difference between the revenue and cash receipts received in H1 2022 related to payments received in advance.

The counter-drone market is growing rapidly with a forecast total addressable market of around $5.9 billion by 2026.

In its 2022 second-quarter update, DroneShield also noted the highly favourable macro environment arising from the Russian war in Ukraine, with both sides demonstrating extensive use of small drones.

With this in mind, defence budgets globally, including that of the Australian Government, have been rapidly increasing.

Motley Fool contributor Aaron Teboneras owns shares in DroneShield Ltd.

Airtasker Ltd

What it does: Airtasker operates an online local services platform that helps people who want a task completed connect with those who want to do the work. Furniture assembly, removalist services, website design, handyman services and photography are just some examples of the categories on offer.

By Tristan Harrison: I'm looking for compelling ASX growth shares that are attractively valued.

The Airtasker share price has dropped by around 50% in 2022, but the company is generating solid double-digit growth. In FY22, its gross marketplace volume rose 23.8% to $189.6 million, while revenue increased 18.4% to $31.5 million.

Airtasker also reported that, excluding research and development (R&D) costs, it made positive earnings before interest, tax, depreciation and amortisation (EBITDA) of $1.3 million at the 'Australian marketplace and head office operations' EBITDA level.

I'm also excited by the company's international potential. In the United States, in the FY22 fourth quarter, the number of posted tasks grew 49% quarter-on-quarter.

Motley Fool contributor Tristan Harrison does not own shares in Airtasker Ltd.

Alcidion Group Ltd

What it does: Alcidion provides software solutions to the healthcare industry to improve patient outcomes. The company's flagship product is known as Miya Precision, which incorporates everything from bed management to patient monitoring.

By Mitchell Lawler: Alcidion released its full-year FY22 report earlier this week, showing a continuation of the company's tremendous growth momentum.

For the 12 months, the software provider achieved record revenue of $34.4 million, an increase of 33% from the year prior. Notably, the time frame included one entire half's worth of contribution from Alcidion's Silverlink acquisition.

Ultimately, the two most promising indicators for me from the recent results are the company's lessening dependence on revenue from Australia and New Zealand, reducing geographic risk, and the further improvement in recurring revenue composition, which reached around 68%.

The current valuation could be attractive if management continues to deliver on geographic and client expansion at this pace.

Motley Fool contributor Mitchell Lawler does not own shares in Alcidion Group Ltd.

Lovisa Holdings Ltd

What it does: Jewellery and accessories retailer Lovisa is a staple in many shopping centres around Australia and the world. In addition to its extensive network of brick-and-mortar stores, Lovisa operates a successful e-commerce business.

By Brooke Cooper: Last financial year was a ripper for Lovisa. Its revenue surged 59%, it posted a $59.9 million profit and entered four new markets. It also more than doubled its final dividend to 37 cents per share.

And it's not expected to slow down soon. Morgans analyst Andrew Tang dubbed the company's earnings a "goldmine", saying:

"What was even more remarkable than the result itself was the phenomenal scale of [Lovisa's] ambition.

"The momentum of growth is expected to increase in FY23, and the addition of further new markets … appears more than likely. In our opinion, it won't stop there."

Motley Fool contributor Brooke Cooper does not own shares in Lovisa Holdings Ltd.

Core Lithium Ltd

What it does: Core Lithium is a resource explorer with a key focus on lithium. Its Finniss Lithium Project, located just south of Darwin Port in the Northern Territory, is under development.

By Bernd Struben: Core Lithium has been a stellar performer over almost any longer-term time frame you choose. Shares reached an all-time high of $1.62 on 15 August. At the time of publication, Core Lithium shares are up by around 122% in 2022 and 288% over 12 months. But I don't think the ship's sailed on the good times just yet.

In July, Core Lithium reported that its Finniss construction was progressing on track to export the first lithium by the end of 2022. This comes in an environment where lithium demand and prices are soaring amid the global shift to EVs and battery grid storage.

UBS recently upgraded its lithium price forecasts by 37%. UBS expects global demand for the critical battery metal to rocket 700% by 2030.

Motley Fool contributor Bernd Struben does not own shares in Core Lithium Ltd.

Lynas Rare Earths Ltd

What it does: Lynas has expertise in integrating rare earths metals from mine to metal. It has a portfolio of assets concentrated in the exploration and production of rare earths.

By Zach Bristow: China currently supplies around 80% of the world's rare earths. But recently, growing geopolitical tensions have highlighted the world's need to diversify its supply chain. According to its website, Lynas "holds a unique position as the only significant producer of scale of separated rare earths outside of China".

It also has a considerable first-mover advantage over its ASX competitors. I believe this places the company in a prime position to capitalise on industry tailwinds that could see demand for Australian rare earths soar in the coming few years. This optimism was echoed in research from Jevons Global in a recent note. 

Lynas shares are also rated as a buy by four out of seven brokers, with a consensus price target of $9.89 per share, according to Refinitiv Eikon data. At the time of writing, Lynas trades on a 14.4x trailing price-to-earnings (P/E) ratio and presents with a 3.5% free cash flow yield and 6.7% earnings yield. 

The Lynas share price closed Wednesday's session around 3% higher at $8.88.

Motley Fool contributor Zach Bristow does not own shares in Lynas Rare Earths Ltd.

South32 Ltd

What it does: South32 is a diversified mining company with extensive global operations in base metals such as lead, aluminium, copper, zinc, and nickel.

By Sebastian Bowen: ASX 200 mining company South32 could well be worth a look this September, even though the company has already had quite a stellar run in 2022 thus far. South32's earnings last month contained a bumper 362% increase in annual dividends to 22.7 US cents per share. That's in addition to the special dividends worth another 3 US cents.

But ASX broker Morgans reckons the shares could climb to $5.50 over the next 12 months, which would give investors around 30% upside from today's price of $4.15. The broker also expects the company to deliver even higher dividends for FY23. As such, I believe South32 shares are well worth considering as we enter spring.

Motley Fool contributor Sebastian Bowen does not own shares in South32 Ltd.

CSL Limited

What it does: CSL is a global biotechnology company that develops and delivers innovative therapies and vaccines that save lives, protect public health, and help people with life-threatening medical conditions to live full lives.

By James Mickleboro: I think CSL shares could be a quality option for investors in September.

The last couple of years have been tough for the company due to COVID-19 impacting plasma collections. Since plasma is a key ingredient in CSL's therapies, the lack of supply meant the company was paying over the odds to donors, putting pressure on margins.

The good news is that plasma collections are now at pre-COVID levels. And with its new collection technology expected to result in greater yields, CSL's margins look likely to start improving again in the near term.

Combined with strong demand for its immunoglobulins, the acquisition of Vifor Pharma, and new product launches on the horizon, I believe the future looks very bright for the company.

The CSL share price closed Wednesday at $293.54, down by around 5% over the past year.

Motley Fool contributor James Mickleboro does not own shares in CSL Limited.

The post Top ASX shares to buy in September 2022 appeared first on The Motley Fool Australia.

The DroneShield Ltd (ASX: DRO) share price is down 19.5% today after the drone technology company reported its half-year FY22 results.

DroneShield develops and sells hardware and software for the detection and destruction of drones. Its customers include government and military, airports, and commercial venues in more than 120 countries.

The company released its earnings after market close yesterday, when its shares finished at 20.5 cents.

The DroneShield share price opened this morning at 18.5 cents, down 9.75%. The shares continued on a downward trajectory to reach a low of 16.5 cents at the final bell this afternoon.

Let's take a look at the company's report.

DroneShield share price tumbles after 45% revenue decline

The key highlights of the report for the six months to 30 June 2022 are:

• Revenue down 45% on the prior corresponding period (pcp) of 1H FY21 to $3.67 million
• Loss from continuing activities after tax up 990% to $4.93 million
• Cash and cash equivalents down 51% to $6.59 million

What else happened in 1H FY22?

DroneShield says it has a $350 million global sales pipeline, including $100 million in projects from here until the end of 2022. It reckons the total addressable counter-drone market is worth US$10 billion.

A highlight of 1H FY22 was winning a $3.8 million contract with the Australian defence department. It expects a contract extension upon completion of this initial contract in mid-2023.

It is also "successfully progressing" the Defence Innovation Hub.

The company says there has been a "continued rapid increase in the US business, including signing a framework agreement with the State of Texas, receiving a counterdrone contract for protection of IRONMAN Texas, and DroneShield's initial GSA order".

DroneShield said it invested in "substantial inventory acquisition to mitigate supply chain delay risks" in 1H FY22. It has approximately $15 million of inventory on hand as at 30 June 2022.

The company also achieved UK MOD SAPIENT compliance in 1H FY22. This means DroneShield systems are now compatible with military standards in the United Kingdom.

What did management say?

In this half-year report, DroneShield said there was a "highly favourable macro environment" today.

This is "due to increased macroeconomic uncertainties, [the] war in Ukraine demonstrating extensive use of small drones by both sides, and rapidly increasing defence budgets globally including by the Australian Government".

What's next?

Earlier this month, DroneShield announced it had received its biggest government grant to date. The $2 million grant will be used for the research and development of its drone technology.

As my Fool colleague Raymond reported, DroneShield says its artificial intelligence, electronic warfare, and adjacent technology services are "increasingly in demand" amid growing geopolitical tensions.

In its half-year report, DroneShield said it is continuing to move into the software-as-a-service (SaaS) space. It is using subscription pricing models on a range of products. It is also advancing its software-related work, especially in defence signal processing.

The company said: "Over time, the software/SaaS business is expected to account for the majority of the Group's earnings."

DroneShield share price snapshot

DroneShield shares are down 5.7% in the year to date. Over the past 12 months, the shares have lost 19.5%. That puts the DroneShield share price in a position no better and no worse than it was one year ago.

The company has a market capitalisation of $88.7 million.

The post Droneshield share price plunges 19% on revenue slump appeared first on The Motley Fool Australia.

The DroneShield Ltd (ASX: DRO) share price is almost 6% higher today after the company announced a $2 million research grant from the federal government. 

At the time of writing, DroneShield shares are trading for 19 cents each, 5.56% higher, after reaching an intraday high of 19.5 cents this morning. 

Let's check the latest news from the ASX technology company.

What does this mean for the DroneShield share price? 

Today's announcement represents DroneShield's largest government funding to date.

It's also timely with the company reporting its artificial intelligence, electronic warfare, and adjacent technology services are "increasingly in demand" amid growing geopolitical tensions.

DroneShield touts itself as a "global leader" in providing security solutions to counter aerial drone threats to more than 120 countries. Think of bigger drones trying to pick up intelligence or even acting as attack mechanisms. 

Last year, the company won the Advanced Technologies Award at the 59th Australian Export Awards. 

The latest grant will support further research and development. 

DroneShield CEO Oleg Vornik said:

DroneShield appreciates the substantial support it receives from the Australian Government, through grants and export support for overseas sales, alongside of our current and under proposal contracts with the Australian Defence Force.

In March, DroneShield secured a $2 million order from an international government agency.

The company then formed a partnership with Nearmap Ltd (ASX: NEA) to bolster its platform software with Nearmap's best-in-class mapping data, serving government, intelligence, homeland security, and defence markets.  

Despite a string of positive announcements in the lead-up to the 12-month peak in the DroneShield share price, its latest quarterly results for 2Q FY22 revealed the business is not yet cash flow positive. 

However, the company is continuing to grow revenue, which remains its main focus. 

The ASX defence and security solution business is quickly becoming one of the pioneers in its niche segment, so it's worth keeping a close eye on. 

DroneShield share price snapshot

Over the past 12 months, the DroneShield share price has risen by almost 3%, peaking at 30 cents in May.

It's also managed to outperform the S&P/ASX 200 Index (ASX: XJO), which has fallen by 7% over the past year.  

The company has a current market capitalisation of $82 million. 

The post DroneShield share price lifts 6% on record government grant appeared first on The Motley Fool Australia.

The Droneshield Ltd (ASX: DRO) share price surged on Wednesday amid the company securing a deal with a US government agency.

The company's share price gained 9.59% to close at 20 cents. For perspective, the  S&P/ASX 200 Index (ASX: XJO) closed 0.3% higher today.

Let's take a look at what went on with the Droneshield share price today.

$500,000 US Government agency repeat order

Investors bought up Droneshield's shares after the company secured a new deal in the US.

The company advised the market it has received a repeat order worth $500,000 for its counter-drone defence system.

Droneshield expects to receive payment for the deal in the September quarter.

CEO Oleg Vornik said DronesShield is now at an "inflection point". He also noted the company has multiple high-profile customers.

Vormik added the "next step" for the company will be achieving orders regularly in the multimillion dollars which he expects "to commence through 2H22".

He added:

This repeat order from a customer with some of the most demanding and complex Government agency requirements globally, shows the industry leading capabilities of DroneShield products.

Droneshield provides artificial intelligence technology for unmanned aircraft systems (UAS) threats.

Share snapshot

The Droneshield share price is up more than 14% year to date, gaining 5% in the past week.

For perspective, the benchmark ASX 200 Index has shed about 8% in the last year.

Droneshield has a market capitalisation of nearly $86.5 million based on its current share price.

The post Why did the Droneshield share price charge 10% higher today? appeared first on The Motley Fool Australia.

The DroneShield Ltd (ASX: DRO) share price has failed to take off in the past month.

Investor sentiment is waning off on the drone security company as the ASX heads towards bear market territory.

While DroneShield shares finished flat at 18 cents at yesterday's market close, they are down 21% in a month.

In contrast, the All Ordinaires (ASX: XAO) is down 7% over the same time frame.

What's dragging DroneShield shares lower?

The DroneShield share price has tumbled in recent times despite the current hype surrounding demand for drone technology products.

The Russian war in Ukraine has highlighted the importance for any military wishing to counter unmanned aerial systems (UAS).

However, sky-rocketing inflation along with a potential global economic slowdown has put a strain on DroneShield shares. This is because if the world does head into a recession next year as economists are predicting, countries will likely tighten up military spending.

Nonetheless, when war breaks out, DroneShield benefits from this just as it did from Ukraine.

The company supplied hand-held detection drone devices as well as its prized drone gun to the besieged country.

With further contracts possibly in the works, DroneShield shares could receive a much welcome boost.

What's next for the company?

DroneShield put out a release yesterday advising that its equipment has been deployed at the World Economic Forum (WEF).

Located in Switzerland and held between 22 –26 May, this could be an opportune time to showcase its products.

The event attracts over 2,500 participants including world leaders and senior business executives.

DroneShield CEO, Oleg Vornik provided a brief outlook on the future, saying:

…The company continues to increase its presence in the tier 1 global events sector, as well as increasing the profile of the products with other key customers such as law enforcement and military personnel.

As stated in its quarterly results in April, the company has a sales pipeline of $155 million for 2022. This is expected to increase to $175 million in the following year, cementing its place in the multi-billion counter-drone market.

DroneShield share price snapshot

Despite its recent fall, the DroneShield share price is up around 9% from this time 12 months ago.

The company's shares reached a 52-week high of 30 cents in early May before retracing 40% to current levels.

DroneShield has a market capitalisation of roughly $84.35 million, with approximately 432.54 million shares on its books.

The post The DroneShield share price has tumbled 21% in a month. What's next? appeared first on The Motley Fool Australia.

Last month brought with it pretty frosty conditions for many ASX investors. But, will the storm clouds reveal any silver linings as we approach the end of the financial year in June? For their thoughts, we asked our Foolish contributors to compile a list of the ASX shares they reckon could deliver wealth over the investing rainbow. Here is what the team came up with.

7 best ASX shares for June 2022 (smallest to largest)

• DroneShield Ltd (ASX: DRO), $95.2 million
• BrainChip Holdings Ltd (ASX: BRN), $1.95 billion 
• Corporate Travel Management Ltd (ASX: CTD), $3.23 billion
• Pro Medicus Limited (ASX: PME), $4.41 billion
• Domino's Pizza Enterprises Ltd (ASX: DMP), $5.96 billion
• Xero Limited (ASX: XRO), $13.35 billion
• National Australia Bank Ltd (ASX: NAB), $102.23 billion

(Market capitalisations as of 31 May 2022)

Why our Foolish writers love these ASX shares

DroneShield Ltd

What it does: DroneShield develops and sells hardware and software for the detection and disruption of drones.

By Bernd Struben: I believe this small-cap ASX share has significant growth potential. The company's expanding customer base spans some 100 nations, including the United States, which makes up 40% of its revenue and sales pipelines.

Demand for counter-drone technology was already growing before Russia's invasion of Ukraine. Since then, DroneShield has received numerous inquiries about its equipment from Ukrainian government agencies. While only one shipment has been sent to Ukraine to date, the country could provide additional future growth avenues.

DroneShield reported a cash balance of $8 million as at 31 March. Its latest quarterly figures showed a 32% year-on-year lift in customer cash receipts. The DroneShield share price has rallied by around 22% in 2022 so far.

Motley Fool contributor Bernd Struben does not own shares of Droneshield Ltd.

BrainChip Holdings Ltd

What it does: BrainChip develops software and hardware-accelerated solutions for advanced artificial intelligence (AI) and machine learning applications.

By Aaron Teboneras: I believe the BrainChip share price is trading in bargain territory after falling by around 12% since the start of last week.

The company is continuing to develop its Akida neuromorphic processor unit hardware product. The Akida chip is designed to think like a human brain and it can be used for a variety of purposes worldwide. These include in the manufacture of smart cars such as the Mercedes EQXX concept car as well as in home automation, unmanned aircraft, medical instruments, cybersecurity, and more.

This broad addressable market provides BrainChip with huge potential to materially grow in the future, particularly given its existing partnership with NASA. BrainChip's technology reduces the count, size, and power consumption of existing components, which are paramount concerns in spaceflight and aerospace applications

Valued at $1.95 billion, BrainChip is still a relatively emerging, pre-revenue company that is looking to dominate the AI market. Should BrainChip be able to deliver on its potential, I think its share price is extremely attractive at its current price of $1.135.

Motley Fool contributor Aaron Teboneras does not own shares of BrainChip Holdings Ltd.

Corporate Travel Management Ltd

What it does: Corporate Travel Management provides business travel management services.

By Brooke Cooper: The Corporate Travel Management share price has slipped by nearly 14% over the last 30 days despite the company releasing a positive update to the market in early May.

Following a series of acquisitions, Corporate Travel expects its monthly revenue in the current quarter to surpass that of 2019, prior to when the COVID-19 pandemic hit. It also has no debt, a strong cash balance, and is recovering faster than the broader corporate travel sector in its key operating regions.

Morgan Stanley is also optimistic about Corporate Travel shares. The broker has slapped the company's stock with a $30 price target and a buy rating. The Corporate Travel share price closed Tuesday's session at $22.17.

Motley Fool contributor Brooke Cooper does not own shares of Corporate Travel Management Ltd.

Pro Medicus Limited

What it does: Pro Medicus is a healthcare imaging software provider to a vast range of medical companies across Australia, North America, and Europe.

By Mitchell Lawler: The Pro Medicus share price has been an ultra-performer over the last decade, with the company's shares increasing in value by more than 100 times. Yet, growth in the company's underlying business remains as consistent as ever.

For the 12 months ending December 2021, Pro Medicus increased its revenue by 36% year on year. For reference, this is above its five-year compound annual growth rate of 23.2%. Reassuringly, profit margins are showing continual improvement – now at 47% — suggesting economies of scale are at play.

Analysts at Bell Potter currently have a buy on this company with a $55 price target. This represents a potential 30% upside from the current Pro Medicus share price of $42.13.

Motley Fool contributor Mitchell Lawler owns shares of Pro Medicus Limited.

Domino's Pizza Enterprises Ltd 

What it does: Domino's is a leading pizza chain operator with over 3,200 stores across the ANZ, Asian, and European markets.

By James Mickleboro: I think the recent weakness in the Domino's share price has created a buying opportunity for investors in June. That weakness, which has seen the share price fall by around 44% in 2022, has been driven by softness in the Japanese market and overall concerns about inflation impacts.

And while these factors could weigh on Domino's second-half performance, I believe investors should be focusing more on the company's long-term growth outlook now. This outlook is, arguably, very positive thanks to management's plan to double its store network in existing markets to 6,650 stores by 2033.

Combined with its strong balance sheet, which could support further acquisitions, this bodes well for the company's revenue and earnings growth over the next decade.

Motley Fool contributor James Mickleboro does not own shares of Domino's Pizza Enterprises Ltd.

Xero Limited

What it does: Xero is a global software business that provides subscribers with cloud accounting and business tools.

By Tristan Harrison: I think Xero is one of the highest-quality S&P/ASX 200 Index (ASX: XJO) shares around right now. Furthermore, the almost 40% drop in the Xero share price this year makes it look even more attractive.

The business is growing its global subscriber base, which increased by 19% in FY22 to 3.27 million. And, arguably, targeting a truly global addressable market gives the company a long growth runway.

Xero's services are also very profitable. Its gross profit margin was 87.3% in FY22, allowing the company to re-invest a lot of new revenue into growth activities.

The company is heavily investing most of its revenue into growth areas like marketing and product development right now. However, over the long-term, Xero is aspiring to reduce how much it spends on these categories which will result in an uplift in profit margins and the bottom line.

Motley Fool contributor Tristan Harrison does not own shares of Xero Limited.

National Australia Bank Ltd

What it does: NAB is one of the big four Aussie banks and commands a significant chunk of the financial products market in Australia.

By Sebastian Bowen: No doubt, NAB is a name and an ASX share that needs little introduction. It's part of the big-four-banks cohort and holds a prominent position on the ASX 200.

NAB could be worth a look this month as inflation continues to be a defining theme of our current investing climate. Banks are famously inflation-resistant businesses due to their easily adjustable margins.

In addition, NAB's current fully franked dividend yield is well over 4% (and over 6% grossed-up), meaning inflation is almost covered by this dividend alone. As such, NAB could be worth a look for anyone who is keen to shore up an ASX share portfolio against rising prices in June.

Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank Ltd.

The post Best ASX shares to buy in June 2022 appeared first on The Motley Fool Australia.

Shares in the ASX tech company, which provides drone protection devices, are currently up 9.8% trading at 22.5 cents, having earlier posted gains of more than 14%.

Ukrainian demand buoys Droneshield share price

The Droneshield share price is leaping higher today amid news of strong demand for the company's drone defence systems from Ukraine.

The company already supplies its anti-drone technologies to militaries, police, and private enterprises across the world.

But following Russia's invasion of Ukraine, Droneshield's CEO Oleg Vornik said (quoted by The Australian Financial Review), "We literally received a few dozen inquiries from various Ukrainian government agencies over the last month that we need Droneshield equipment."

The company has already sent a shipment of hand-held drone detection devices and its Drone Gun to the embattled nation. The Drone Gun disables enemy drones by jamming their electronic frequencies.

A European nation, as yet anonymous, paid for the initial shipment of anti-drone devices that were delivered into Ukraine.

Vornik hopes the Aussie government will step up to help fund the next shipment.

"We are hopeful of getting the Australian government or maybe somebody else to get our gear funded so we can get it over there," he said.

Take down the drones

Vornik explained that the Russian military does not yet control the skies above Ukraine. Instead, it is depending on drones with plenty of non-Russian parts for its battlefield planning.

"They would essentially scout in an area and see Ukrainian positions and then send artillery shells in that direction. Our equipment would take out those scouting drones," he said.

Vornik continued (quoted by the AFR):

The fascinating thing with the Russian drones which may sound surprising is they use a lot of non-Russian parts. They use a lot of American parts, European parts, Chinese parts.

I was worried when we did the first sale because I wasn't sure how effective our gear was going to be because we've never tested it against Russian technology before. But it seems because they are using a lot of foreign parts, our equipment is effective against it.

The feedback from the war front has been positive in terms of the impact against Russian drones.

Droneshield share price snapshot

The Droneshield share price has been a strong performer this year, up 25% since the opening bell on 4 January.

In comparison, the All Ordinaries Index (ASX: XAO) is down 8% year-to-date.

The post Droneshield share price leaps 10% amid strong Ukrainian demand appeared first on The Motley Fool Australia.

At time of writing the DroneShield share price is up 2.1% to 24 cents per share.

The company offers AI-based platforms to protect against threats posed by drones and other autonomous systems.

Below we look at the quarterly highlights reported this morning for the 3 months ending 31 March.

What results were announced?

The DroneShield share price is on a bit of a rollercoaster today despite the company reporting some strong quarterly results.

That included an 89% year-on-year boost in revenue, which reached $10.6 million.

The ASX tech share also saw a 32% increase in customer and grant cash receipts for the first quarter compared to Q1 2021.

DroneShield also said its inventory balance of $14 million (by sale value) diminishes supply chain risks and enables rapid sales.

As at 31 March the company's bank balance stood at roughly $8 million, which is where it remains as of this morning. It said monthly gross outflows, before revenues, are around $1.1 million per month.

Looking ahead, DroneShield estimates its sales pipeline for the rest of 2022 to be some $155 million. In 2023 this pipeline is estimated to stand at $175 million.

The company intends to increase its focus on "the more business-transparent US and Australian government customer base".

It sees significant opportunities globally, noting the situations in the Middle East and the conflict in Ukraine, alongside an ongoing increase in local defence capability by the Australian government.

Outside of the military, airports also offer a potential growth segment, with DroneShield reporting that US and Australian airports, among others, are "actively evaluating counter-drone deployments".

Droneshield share price snapshot

The DroneShield share price had been a strong performer in 2022, up 31% since the opening bell on 4 January. By comparison, the All Ordinaries Index (ASX: XAO) is down 5% year-to-date.

The post DroneShield share price turbulent as revenue soars 89% appeared first on The Motley Fool Australia.

Analysts at US investment bank Merrill Lynch have redefined the FAANG basket of stocks.

Formerly – and currently – the group was made up of Facebook, Apple, Amazon, Netflix and Google – the tech darlings of the NYSE and Nasdaq.

This group has provided investors with unparalleled returns over the past decade, positioning themselves as the biggest companies to ever walk the global stock markets.

FAANG 2.0? What's it look like?

Up until now, the group has been the major floatation device for the US (and quite arguably, global) stock exchange(s).

Some quick analysis enables us to easily see just how much this is so. The performance of the S&P 500 from 2013–2022 has seen it climb to record heights, even through a pandemic, and flash crash of 2018.

However, stripping out the FAANG group sees incredibly different results, Ed Yardeni of Yardeni Research explains.

Yardeni show's us a chart displaying the market cap of the S&P 500 – with and without the FAANG basket included – to highlight the index wouldn't have performed nearly as well if it weren't for these 5 tech juggernauts.

Plus, with a shifting macroeconomic narrative, that's sending a blitzkrieg of geopolitical, inflationary and rates-based missiles at global markets, tech shares have taken an absolute beating in 2022.

The S&P/ASX All Technology Index (ASX: XTX) is down 19% this year to date and is the worst performing Aussie sector.

Perhaps that's why Merrill are shifting their posture; in order to dance in tune with the emerging trends in commodities, energy and food production.

"The original FAANG acronym was made up of company-specific tech leaders that enjoyed sustained growth over the last decade as the economy increasingly digitalised—and then thrived—over the pandemic (and added $3.2 trillion in market cap)," it wrote in a recent note.

"[O]ur version of FAANG 2.0 reflects a new world of geopolitical risks and resource/hard asset intensity."

Instead, Merrill lists its own pockets of the market where it "find[s] future value given the defining market rotations [it] expect[s]."

That consists of Fuels, Aerospace & defence, Agriculture, Nuclear/renewables and Gold/metals/minerals, to produce FAANG 2.0.

So what ASX shares have conformed to this latest definition? Considering the current macro trends, there's been plenty.

Shares in agriculture player Graincorp Ltd (ASX: GNC) are up 18% this year to date, bringing an 81% gain for the last 12 months. Meanwhile, hydrocarbons giant Woodside Petroleum Limited (ASX: WPL) shares are up 47% this year to date to cover off fuels.

Gold shares have spiked hard in 2022 as well, with Bellevue Gold Ltd (ASX: BGL) spiking 14% since January for instance, whilst small-cap player Droneshield Ltd (ASX: DRO) has spiked 28% in the aerospace field.

The post Could these ASX shares be the new FAANG stocks on the block? appeared first on The Motley Fool Australia.