Flyht Aerospace Solutions

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.

Recently announced they are going to consolidate the stock, which typically means they are optimistic about the future. This revolves around 2 things. They have black box flight recorders operated through a satellite system as to where the plane is, so it is always on and always available. There is a new 2020 change in legislation that basically says that if there is an airplane in distress, you have to know where that airplane is and be able to receive a signal at least once a minute. This is the only company globally that has the capability to do that. Their device is installed in about half of the Airbus A320 planes. They have an installed base of 1000 units in those planes, and are going back to the owners of those planes, explaining they can get huge benefits from efficiencies of reduced fuel consumption, maintenance, etc. The boxes are in about a 3^rd of the Chinese fleet, which has a mandate that by 2017 they have to know where a plane is. Theoretically this has the potential to double the size of their active base by signing one of these Chinese companies in the next couple of years. There should be progress by the end of this year.

This is trying to improve black box flight recorder technology. Looking at the long-term chart, they haven’t gained a lot of traction. He doesn’t like to invest on hope, but prefers to see some results for several quarters first. This seems more like a lottery ticket.

A great little aerospace technology story, based out of Calgary. They have a smart “black box” which has following capabilities as well as flight data monitoring capabilities. They allow airlines to operate more efficiently. It has taken a while for them to develop a market, but it has now turned profitable in the last year. The stock is quite undervalued here. If you buy it today, 12 to 24 months out you will be very, very happy.

Makes electronic black boxes for airplanes. In addition to knowing where the plane is, they also have captured a bunch of data for making things more efficient from an operations viewpoint, fuel consumption, proper hours of operation, etc. They just announced a new contract with a Chinese airline. China really is the key for the company, because they are building out a massive increase in their fleets and airports.

An “Internet of things” company in a way, but for the aircraft industry. Provides critical data streaming from planes to the ground, and are the leader in that segment. Over time, this will become a global standard. They struggled for a number of years and just became profitable this year. It has great things ahead of it. Thinks the stock goes significantly higher.

Sells to aircraft manufacturers to track planes and utilize information in a more productive way. Had a big run up when the 370 went missing in the Indian Ocean 3 years ago. The stock went way up and then came down because this is a long-term story. It has had a huge run recently. Came out with a couple of positive announcements on contracts and information, and it has kind of sparked a fire. However it is probably too early. This is a long sales process. He wouldn’t recommend this as he is more conservative, but it certainly has some good qualities.

Finally starting to pop, because they basically have a dynamic system. Instead of a black box that goes to the bottom of the ocean with the plane, this system does dynamic streaming from the plane to a satellite. It can get flight location as well as engine analysis and productivity calculations. The stock has gone up partly because of optimism regarding China. China buys about 40% of all planes manufactured globally, and are building out airports by about 25% over the next 3-5 years. They are now embracing this company’s products. It looks like this company will potentially end up being a supplier. Thinks there is good opportunity for the stock.

Technical analysis is a study of crowd behaviour, so whenever you are looking at a penny stock, it is usually traded by less players, so you tend to get concentration of ownership and the crowd factor is less so. This stock was in a downtrend, and has most definitely begun quite a nice little base. You want to see a break out in the mid to high $0.20. If it broke out into that area, you would then probably have some significant upside ahead. Right now, it is in a base, which is a healthy development.

He likes this very much. Things are going great for them. Their Chinese business has been a particularly bright area. Potentially it looks to accelerate some more next year. With increasing pressure for increased regulation, at some point in the next 2-3 years, you could see something happen that would accelerate adoption in some of their solutions. It is likely going to finish the year profitably.

They provide mostly commercial airlines, along with defence, the ability to download all the critical data off all their planes in real time. This results in reliability and cost savings for the airline. This is a really good opportunity. It has been in a kind of bottoming process for the last 6 months, despite the last couple of quarters hitting new record sales, etc. Really, really cheap. Brought in a new high profile CEO in the last year. Have just had their 1^st profitable quarter in their history.

This has flight data recorders that go into airplanes, and it is a hard, hard sale to get airlines to put in a $100,000 product, even though it is going to save them money and is a good product. Probably still a little too early. The growth is nice to see, but the market cap is a little too small to get a lot of attention.

This has a black box in an airplane, and can use the system for either voice communication or a connection through a satellite, a kind of interconnect to monitor the health of engines, etc. It can be installed on an OEM basis for Airbus, where approximately half of their 320’s has had the product installed on the factory floor, but mainly for voice. They are now returning to those users, and offering them upgrades to do many other things. In addition to Airbus, they are also attempting to getting installed on other airframes, the biggest one being Boeing (BA-N). If they get this, there will be a significant lift in the stock. Hopefully, we will know by the end of September if they are successful. Good product and great recurring revenue, but they need more of a rollout.

They supply some of the ingredients for the black boxes on airplanes. A small company with about $10 million in revenues, and about $6 million in debt. This could go higher, but one of the dangers of a company like this is dilution. In May they sold more stock and gave out more options. This is a wing and a prayer.

Technically it looks like it has been creating a long-term base. Over the years, this really hasn’t done a lot of what they had anticipated doing. Making changes on small planes takes a long time to go through FAA and all the regulators. They are trying to move into getting real time pulses up to satellites, in order to track planes. This would be an advantage over having to find a flight recorder. The technology seems to be quite good. The issue is how planes get retrofitted, the ability to get into the flight bag, etc. with some of the larger suppliers.

A micro-cap stock. Potentially a multi-bagger. They are penetrating the commercial aerospace market. Stock has not done well because things are taking longer to develop in terms of revenues and earnings than had been expected. Just reported their 4^th quarter, making a slight profit. Revenues were up 60%. He is looking for a big break-out this year. Many of the airplane manufacturers are installing their box.

Whenever he is looking at charts, he starts off with a weekly chart of 3 years or so, and then works down to the small case. This one had a long downtrend from early 2014, but currently it might be firming up. There is a bit of a lid on the stock right now, but if it breaks that lid, that would be a breakout from a base.

Keeping track of the time during takeoff and landing is most important. You don’t have to find the plane after it disappears off the radar screen in order to get its black box data. It is 85% a recurring revenue model.

They have a special black box for airplanes. The black box can be used all the time, but has a series of measurements whereas if a plane is in distress, it automatically starts streaming information right away. Also, have a bunch of modules that improve an airplane’s efficiency. This is a recurring revenue model. There is now an OEM installation on Airbus planes, as well as retrofit on existing planes. People are waiting for China, because China has said that all Chinese planes have to be fitted out with the same type of communication capability by the end of 2016. Consider buying if you have a time frame of 2 years, but he would wait for further indications.

He would continue to hold it. He loves the opportunity. In a year or two people are going to wonder where it came from. They have broken all the regulatory hurdles. To him it is a table pounder.

It is symptomatic of the type of market we are in. Early stage small cap companies are not getting recognized unless they are producing cash this quarter. There will be good news over the next 6 months and then it should skyrocket. This is a very difficult business to break into.

This has not done well in the last year. It had a speculative run up last year after Malaysian Airlines 370 disappeared and people got all excited. If their equipment had been on that flight, we would have known the minute that flight went off its intended course and exactly where the flight went down, and would have had everything recovered. However, this stock is about enhancing efficiency for airlines. They provide a cost savings for airlines that provide better up time for their fleet, better maintenance, reduced fuel consumption and lower insurance rates. Until now, the stock has not made money. Last quarter was their best in history, with $2.5 million in sales. They lost $100,000. They are on the verge of becoming profitable. He has a one-year target of $1.10.

Their most recent results were positive. 6 months ago they announced an agreement that Airbus will allow their customers to order the flight solution as an option, and there were significant sales for the first parts of that. They need recurring revenue from new sales. Still waiting for a pickup in Chinese sales.