![]() ![]() If an investor picks the wrong one, however, the return may never come. Investing in the one right drone company now, one that is successful in capturing a significant part of the forecasted growth and the large future market, can bring attractive or even massive returns. The compound annual growth rate of the drone industry is estimated to be around 20% from now. One of many online sources predicts the total market size for drones to reach over $55 billion in annual revenue by 2027. With only one holding in the drone space, chances are that it will turn out not to be the best pick. When buying shares in AgEagle or any other single drone company stock, it's just one pick from the contenders for a big prize further out in the future. The above finding about the joint movements of the stock of several drone companies is the basis for the first half of my investment thesis for AgEagle. If an investor only picks one holding in the drone industry, there's a higher chance of not having a long-term winner in the portfolio. In that way, there's a higher chance that the long-term winners are in the portfolio. Investors think that it's better to spread the risk and take a stake in a number of drone companies. They do so because they find it hard to predict which of the drone companies will turn out to be the best investment in a few years from now. There's likely to be a significant number of investors, who buy and sell shares of several drone companies simultaneously. A plausible explanation exists for the joint movement. There's no 100% guarantee, but, in my opinion, it's hard to see how it could be coincidental. In the comment thread with one of my previous articles, "Alpine 4 Technologies: Acquisition Of Drone Businesses Leads To Excessive Rally", there has been discussions between readers if the simultaneous movement of drone stocks is a coincidence or not. They all started rising towards the end of 2020, they all reached a peak in February 2021 and they all fell back significantly from that peak until now. The above graph illustrates that shares of the four drone companies move up and down in sync. The following graphs show how the drone company shares traded over the last year. ( NYSE: UAVS ), started to go up strongly. ![]() ![]() ( OTCQX:TAKOF), and the company that is the topic of this article, AgEagle Aerial Systems Inc. The shares of Draganfly ( DFLYF), Alpine 4 Technologies ( ALPP), Drone Delivery Canada Inc. From November and December 2020, there was a general surge in drone relates stocks. ![]()
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |