Should You Get Involved in This MOB Scene?

This one comes to us via reader request. 

I honestly did not know much about this stock going into this analysis, so I do not have a bias and, other than what they do, I had not looked at the fundamentals and had only glanced at the chart. 

With that out of the way, today's requested stock is Mobilicom Limited (MOB). So, without further ado, let's find out if we are comfortable hangin' with the MOB.

Just Who Is Mobilicom? 

Mobilicom Limited is a Melbourne, Australia-based provider of end-to-end cybersecurity and smart solutions for drones, robotics and autonomous platforms. The firm does have operations in the U.S. and does have a designated vice president of U.S. sales. 

Mobilicom designs, develops and delivers solutions primarily focused on protecting manufacturers of unmanned vehicles, robots, and autonomous systems from nefarious actors. Products offered include OS3 Platform Software, ICE Cybersecurity Software, Cloud Management Software, MCU Mesh Networking, Mobile Ground Control Stations and System Engineering Services. 

The ADRs are listed at the Nasdaq in New York City. The firm has driven very little revenue and to date, no positive operating income, so this is speculative. Not that necessarily scares me away, but for readers and investors it does need to be said and made clear.

Fundamentals 

For the trailing 12 months, as of June, Mobilicom generated operating and free cash flow of -$3.7 million. The firm has not yet laid significant capital expenditures. The stock lost and regained compliance with Nasdaq-listing requirements back in mid-2024. 

In July of this year, Mobilicom received orders for as much as $1.4 million from one of the largest drone manufacturers in the U.S. That customer has integrated Mobilicom's SkyHopper Pro product into its unmanned vehicles sold to the U.S. Department of Defense/War. In September, that purchase order was increased in size to $1.55 million. 

Mobilicom's products have been added to the DoD's Blue UAS Framework. What that means is that Mobilicom's products have been vetted and are certified as compliant with the NDAA (National Defense Authorization Act).

Balance Sheet 

Warning. These are tiny numbers. 

As of June, the firm had $8.571 million in current assets, including $6.833 million in unrestricted cash. Current liabilities added up to $1.235 million, which was mostly payables. Total assets amount to $9.183 million, while total liabilities less equity comes to $4.413 million, including $2.624 million in warrants. That is the only "debt" I see.

The Chart​ 

Readers will see that Mobilicom stock has developed a Double Top pattern of bearish reversal with an $8.15 pivot. However, the shares have found support at their 21-day exponential (EMA), which implies support across the swing crowd. There is a chance that ​this Double Top may have just turned into a Double Bottom or is forming a Base of Consolidation.

Personally, I am not yet convinced to allocate my investment capital into this name. That does not always stop me with these names, but this chart looks like it may be pausing in this area. 

Relative strength has cooled while within the daily moving average convergence divergence (MACD), the histogram of the 9-day EMA has gone negative as the 12-day EMA has crossed below the 26-day EMA. These are short-term bearish signals. 

I think I may decide on speculating in this name closer to the 50-day simple moving average (SMA) (currently $6.73) should the stock crack 21-day EMA support. Going the other way, I would need a break above the recent highs to think about chasing. 

What that means is that I may buy this name at a discount, and I may buy it on momentum. Inside the range it's been in since mid-September? I see that as a coin flip.

Note to Readers: If you have a stock that trades for less than $10 or a true small-cap that you would like me to take a look at, I cannot promise when, but I will try to take a look at it. Just contact me in the comments on my articles, through email or on X/Twitter.

Please note that due to factors including low market capitalization and/or insufficient public float, we consider MOB to be a small-cap stock. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.

At the time of publication, Guilfoyle had no positions in any securities mentioned.