Robust Revenue growth and operation expansion into Africa are the latest catalysts driving Global UAV Technologies Ltd (CNSX:UAV) up the charts. While the stock remains engulfed in a steep downtrend, all indication is that a bounce back could be in play.
Global UAV Technologies Price Action
However, the stock has a long way to go to turn bullish, given the underlying long-term bear trend. It would take groundbreaking developments to strengthen the stock’s sentiments which appear to be at all-time highs.
Global UAV Technologies faces immediate resistance at the $0.005 mark, a level it will have to breach to reaffirm the emerging uptrend. Below the critical resistance level, the stock remains susceptible to further declines as short sellers wait for the slightest opportunity to pounce.
About Global UAV Technologies
Global UAV Technologies bills itself as a diversified vertically integrated company focused on the drone technology. The company operates in the commercial unmanned aerial vehicle sector. Through its wholly owned subsidiaries, the company provides an array of UAV-based services as well as products. In addition, it also engages in drone research as well as development and manufacturing.
Global UAV Technologies trading activity has inched a notch higher in recent days, following the posting impressive Q3 financial results. During the quarter, the company registered a 20% increase in revenues that came in at $401,197 against $$333,529 reported a year ago. Year to date revenue, on the other hand, was up by 140% to highs of $1.3 million.
In addition to revenue growth, Global UAV Technologies achieved significant milestones in the quarter that CEO, Mike Burns, insist safeguard the company’s long-term prospects. For starters, the company completed the acquisition of Aerial Imaging Resources in a non-brokered private placement of $1.77 million. The acquisition should go along in strengthening the company’s core business on UAV.
Management changes also came into being as the company assembled the correct team in pursuit of new ideas to accelerate revenue growth.
“The Company believes it has made significant improvements and will continue to work on streamlining operations which the Company expects will result in significant cost reductions over the long run. The revenue growth of the consolidated business units is nothing short of impressive for a company that has been in operation for approximately 18 months,” said Mr. Burns.
According to the Chief Executive Officer, Global UAV Technologies is on an aggressive growth trajectory, thanks to business unit acquisitions at the back of operational improvements. Focus going forward will be on key corporate actions, targeting acquisitions among other items, in pursuit of new opportunities for growth.
Africa Strategic Opportunity
Global UAV Technologies has once again reiterated its commitment to pursuing opportunities on the global scene. Its wholly owned subsidiary has consequently inked a contract with Axiom Group of Companies. The contract is for a high-resolution UAV-MAG survey in the Republic of Sudan. The area up for a survey is in a remote region of Northern Sudan.
“Pioneer Aerial was selected for this project due to their competitive pricing, extensive international field experience, high-quality data and their ability to successfully complete surveys in challenging environments.” Stated Doug Engrail, CEO of Axiom Group.
Axiom Group is a repeat customer for Pioneer Aerial having worked for the company on a similar project in North America. The new contract underscores the subsidiaries credibility when it comes to surveys in remote locations, where technical challenges are usually the order of the day.
According to Mr. Burns, Africa is a strategic region where the company will be able to generate significant value going forward, given Pioneer Aerial’s survey solutions as well as competitive pricing. The company is eyeing the continent as part of its aggressive growth and expansion strategy.
The survey contract in Africa came just days after Transport Canada issued Pioneer Aerial Special Flight Operating Certificate. The certificate paves the way for the company to conduct Beyond Visual Line of Sight operations at test range location in Foremost Alberta.
What Next For Global UAV Technologies
Global UAV Technologies is not yet out of the woods despite the recent spike after reporting impressive Q3 financial results. The report did indicate that the company is gaining traction with its core UAV business given the revenue growth. However, the company still needs to deliver new catalysts if the stock is to bottom out from the current lows.
Given the level at which the stock is trading at, now may not be the best time to enter a long position. Taking a back seat and waiting for further confirmation on the next direction of trade would be an ideal play.
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Disclosure: We have no position in CNSX:UAV and have not been compensated for this article.