Flyht Aerospace Solutions (FLY.V)

It's selling into airlines, which are notoriously hard to sell to. A disappointing stock, though it just ticked up due to a recent Boeing project, a black box that continuously streams data from the cockpit to the ground. Only a few airlines have jumped in, but the strongest growth is coming from China where the airlines are facing stricter regulation. He expects a breakthrough in the coming year, but he felt that way last year, too. The CEO just bought stock.

Split or reverse split will be reflected in the charts technically and fundamentally, so don’t worry about it. Reverse consolidation tends to have a negative impact. Means the company’s had problems. This stock has dropped more than 50%. There was a triple pop, but couldn’t break through. $1.50 is the first place you’re going to have problems. You want volume to confirm it.

Testament of how hard it is to break in with large commercial airlines. They have not been able to build critical mass. Last year they were able to become profitable but last few quarters have been losses. Management is confident they will not have to raise equity. On a demonstrator with FedEx and Boeing. They have not yet achieved that really big order. Not likely to go down from here. Believes there is huge upside. Unique technology. All it will take is 1 or 2 airlines adopting this technology.

This company makes black boxes for the airlines. They have been around for a while, but the stock has not done well as trials with airlines have not been successful. He has held off buying until they get more traction with sales. They are too small to get into the big airlines.

This stock has been quite disappointing despite their business model. This is a very competitive space with long marketing cycles. He is not sure why there is not any market coverage. Perhaps if they report some consistent earnings quarters it will help.

One of the bigger shareholders lost patience and sold it and created pressure on the stock price. They do in-sky online streaming of data from the planes to ground. Eventually this technology will take off. Great business model. High gross margin. It is a $50 million market cap that is offering a great buying opportunity.

He followed the stock for 7 years and has warrants to buy the stock at a higher price . They are doing testing with Boeing and FedEx involving new standards. He expects the results to come out over the next few months and expects them to be positive for Flyht. The short term key for Flyht is a significant opportunity for recurring revenue in China. They are making good headway introducing new technology to China now, but the large contracts are yet to come.

A long-term holding for him. It underperformed last year despite emerging profitability. The fundamentals are improving. 2018 has the potential to have some very big business developments that should drive the stock upwards. There has been insider buying in the last couple of months, which is a pretty bullish signal.

A fascinating small-cap company that recently became profitable. However, the 3^rd quarter was not profitable which caused softness. Feels there are a lot of good things to come in the coming year. They have fascinating technology to help airlines run fleets more efficiently, as well as dealing with problems like lost airplanes. Feels it is going to be a very successful company long-term. The recent pullback is a buying opportunity.

Recently traded at $2.50, earnings were a disappointment, so it drifted down to about $1.95. They continue being in tests with Boeing (BA-N) and a courier company. Also working with one of the satellite companies. They offer a black box installed in planes for 1) communication and 2) to keep track of where the plane is. There are new regulations coming that says you have to know where a plane is. Believes this is a time to buy.

He is very positive on its outlook. The key is the recurring revenue opportunities, particularly in China, where he sees a huge explosion in the number of planes that will be fitted with their system. They are currently installed as an option on the Airbus airframe. Now doing tests with Boeing (BA-N) which could be significant. By 2020, all planes must have the ability to be tracked, and this company’s advantage is that they have a link that goes out to a satellite allowing them to be found very quickly. Also, their equipment can save money on fuel, scheduling maintenance, etc.

Chart shows a big drop from early 2014 into 2015, and then started to base. Generally speaking, it is now stuck in “never-never” land. It has been trading sideways since about 2015. It could be flat line returns for a while yet.

A great little Calgary-based company. An Infotech provider to aerospace. It has been around for about 15 years, and just recently emerged into profitability. This is the type of leader of tomorrow that he likes to invest in. A very cheap stock. It provides smart black box streaming off planes. They sell their product to the airlines as a streaming service, which helps the airlines maximize profitability of their planes.