Flyht Aerospace Solutions (FLY.V)

They have a black box system for airlines. Thinks this is a bit of a “story stock”, and pretty speculative here.

Trading at 10X EBITDA. Appears to be oversold. He is waiting for a technical signal. Looks like it is close to being time to buy the stock back. Very good opportunity over the next 1-1.5 years. Doing a 4 for 1 consolidation of their stock which helps them move up to other exchanges.

Have a data transmitter that keeps track of planes. When the flight disappeared in Malaysia people said it would have helped. It had a big run up because of the media. It is good technology, but expensive to put on a plane. It is one to watch for sure. You need to see revenue and earnings ramp up.

Stock has had a nice run and he thinks that is on the back of the Malaysian airplane that went missing. Looking at the fundamentals, he thinks it is an expensive story. Trades at around 6-7 times sales and really isn’t making a lot of money.

This is a “real-time” black box for the airline industry. The US FAA has approved the use of a satellite system that can carry voice and data. On January 22, they announced “all deliverables agreed to” have been delivered on time.

Hung steady until August when it took a pop, obviously on some good fundamental news. Relative Strength (RSI) is kind of in the middle of the line, indicating it is not overbought or oversold. MACD has been weakening since early fall, so you have a little bit of divergence with the price continuing higher and some of the metrics starting to weaken. Has some pretty good support at $0.45 and the next level would be in the $0.40 range, with the next support at just under $0.30. With the smaller cap name, you are going to have to know the fundamental story.

A very exciting company. There are huge gaps in communication coverage for planes that are flying globally. This company has enhanced the current black boxes, making them much more robust and installed a continuous communication platform that goes through the satellite systems, giving continuous communication. Stock is starting to act very, very well. Have been working with the Chinese for quite some time. This is becoming a standard in the Chinese industry. In 2014, you will see a real acceleration in their revenues and profitability.

This is his 8^th largest holding. Use satellites for communications, allowing communications with airplanes at the extreme poles as well as in the Caribbean section. Received approval from FAA for garden-variety carriers. Currently looking for approval with Airbus to install devices as new equipment into their fleet. If successful, this will become a recurring revenue story.

Have a black box so they can figure out what happened to an airplane when it crashes. Also, have measurement tools to help lower maintenance costs and lower fuel costs and are currently in the process of getting certified with Airbus for installation by the end of the year. He is convinced that they are going to have great things happen to them in 2014.