Sharing some thoughts below
1/ Price close to/ below IPO
Can be interpreted as negative by some but positive by others as a good entry level.
Today was also Friday and tax selling time, and PRZ started trading almost near end of day. So some lack of interest was understandable
2/ Some good articles on Parazero
https://smallcaps.com.au/drone-safety-bound-parazero-complete-asx-listing/
https://unauthorised investment adv...es-more-details-of-operations-for-the-market/
https://unauthorised investment adv...er-parazero-is-set-to-join-the-asx-on-monday/
https://unauthorised investment adv...need-to-know-about-investing-in-drone-stocks/
I’ve linked many extracts from above articles (best to read all 4 articles) in points below. Apologies if I mixed up some links below by mistake
3/ Market cap
“ParaZero (ASX
RZ) – At 20c.
Market Cap: $17.5m
https://unauthorised investment adv...need-to-know-about-investing-in-drone-stocks/
Hard to say what is appropriate market cap for this type of stock. Huge potential in industry in future
4/ Business
Put in very simple words, Parazero is into safety of drones. Drones is an industry with huge potential but obviously people are afraid of drones crashing into people and causing damage and injury.
“ParaZero was first founded in 2014 and after several years of development, the company has developed a novel product that offers significant drone security and mitigation. The company’s listing comes alongside the growth of reported drone incidents now reaching around 260 per day in the US alone.” – extract from article
https://smallcaps.com.au/drone-safety-bound-parazero-complete-asx-listing/
5/ Eventual government regulation
“Full commercial operation of drones over populated areas will never materialise without a regulator-approved safety solution. Parazero is a leader in this market with smart sensing, best-in-class low-altitude deployment and drone management capabilities.
ParaZero should see significant upside as regulatory bodies inevitably impose strict safety requirements on drones.” – extracts of article
https://unauthorised investment adv...need-to-know-about-investing-in-drone-stocks/
My comments – As article mentions, the key area in drones in future is going to be safety and governments and regulatory bodies will inevitably scrutinize this closely, as drones become more and more common and in daily use.
So, not only do drones have good future prospects and is a huge potential future industry but PRZ is in a very key component of that industry – the safety aspect.
So, obviously huge prospects if things go well
6/ Suitable for most drones
“The ParaZero parachute and flight data recording system can be fitted to most drone models and have already gained a good foothold in the industry, despite very limited regulatory requirements at this point.” – extract from article
https://unauthorised investment adv...need-to-know-about-investing-in-drone-stocks/
My comments – Again as article mentions, PRZ’s system
can be fitted to most drone models. This would be an important point going forward and increases PRZ business prospects
7/ Protection of costly drones
“Not only is the safety of onlookers paramount when operating a drone, but drone operators will be wanting to protect their commercial drone investment, which can be up to several $100k per drone. Asset protection should be another factor in demand for ParaZero type safety systems.” – extract from article
My comments – Again, great point by author.
Our first thought of safety is obviously from point of view of people but
there would be costly drones too and focus on protection of those drones itself could be good business.
In another article below, we can see how the range of drones. It is not hard to imagine some costlier and more complex drones as the sector becomes more popular
“In the commercial sector, drones are experiencing even stronger adoption rates as various companies continue to adopt drones to deliver exclusive functionality that improves business margins, operating conditions and reduce costs – depending on the application.
As just a handful of examples: insurance companies are using drones to inspect damaged assets while farmers are sending them to monitor crops and collect soil data. Even more dramatic changes could be in store as drone operators adopt drones to explore ground-breaking applications such as product delivery services for retail stores and air taxis for commuters.” – extract from article
https://smallcaps.com.au/drone-safety-bound-parazero-complete-asx-listing/
8/ Suitable for heavy drones
“Its service offering is centred around improving the safety of drone operations with a heavy focus on bystanders and safeguarding often-expensive drone hardware that can weigh as much as 300 kilograms per unit.” – extract from article
https://smallcaps.com.au/drone-safety-bound-parazero-complete-asx-listing/
This would be a key point for drone safety companies. PRZ is able to handle small and big drones alike
9/Video of PRZ product in action
Check article below which shows 2 videos including how a real drone crash in Japan could have been prevented by Parazero
https://unauthorised investment adv...er-parazero-is-set-to-join-the-asx-on-monday/
Also refer
@curis video below, where company representative talks
https://hotcopper.com.au/threads/ann-top-20-holders.4246090/page-12?post_id=33876084
10/ Customers
“According to ParaZero, it has already sold more than 1,400 systems to various commercial drone operators with its “key customers” including Lufthansa, DJI, Ewatt, Skysapience and ECA”. – extract from article
https://smallcaps.com.au/drone-safety-bound-parazero-complete-asx-listing/
11/ General Recognition
“The Company will be participating in the Unmanned Aircraft Systems (UAS) Integration Pilot Program (UAS Integration Pilot Program) working on the safe integration of UAS operations into the National Airspace System (NAS) in the United States.
The ten teams were chosen out of 149 teams that applied.
ParaZero is a proud member of two of the selected teams and will work together to promote the safe integration of UAS in the NAS. The UAS Integration Pilot Program is an important program that will help pave the way for the emerging UAS market in the United States.” – extracts from today’s announcement
https://hotcopper.com.au/threads/an...ng-on-business-plan.4261233/?post_id=33875007
Seems like PRZ does have some role and recognition in this upcoming sector
12/ Recognition by insurance company
“ParaZero Limited (ASXRZ) is also pleased to announce that Allianz Global Corporate & Specialty (AGCS), part of Allianz Group, will be offering discounted insurance products to customers utilizing ParaZero drone safety systems.
These products will initially be targeting the US insurance market followed by other regions where AGCS insures unmanned aircraft; pricing incentives and preferential conditions will be offered for customers using ParaZero products.
Although the Company receives no direct benefit from AGCS (AGCS will provide insurance pricing incentives and preferential insurance conditions to customers using ParaZero products), the Company considers it reasonable to expect that the AGCS decision will act as a further selling point of the Company’s products.”
https://hotcopper.com.au/threads/an...ng-on-business-plan.4261233/?post_id=33875007
Again, further recognition by insurance company suggesting that PRZ product might be the real thing
13/ Final words
Thought it was an interesting stock for retail shareholders to be able to get in at IPO prices. As of now, I’m not sure about my holding period, and will re-evaluate based on further pros and cons as they become known. So please DYOR as I have no sentiment right now on the stock and am not suggesting anything, and might buy/sell at an instant myself.
At first glance, I thought that at least some gain (maybe at least a few pips) from IPO levels seemed possible in time. Tech stocks however can be very unpredictable and are often all or nothing stocks.
Very happy to hear further positives and negatives for a balanced debate.
Cheers
