August 9, 2019
Flyht Aerospace Solutions – The Future in Flight Saftey
I’ve been a holder of Flyht Aerospace Solutions for some time but until recent I haven’t been bullish on the stock. After coming off highs of $2.70 a few years ago the stock dropped below $1.00 and since recovered to $1.72. The company reported earnings Wednesday which saw revenue increase across segments and net income of $1,037,326.
Lets take a closer look at the company.
Flyht provides real time intelligence and cockpit communications to the aerospace industry. Do you recall MH370 flight which went missing in 2004? To date the aircraft has not been found and many questions still remain as to what happened during the flight. Imagine if Flyht was able to provide data real time to ground crew providing insight as to what happened. Could any information help locate the missing plane and provide closure to families with loved ones on board? Now imagine if real time data could help save a plane from disaster or provide information about failing equipment allowing ground crew to fix an issue before it becomes a problem. All this sounds like a win for airlines and a win in public flight safety.
Over the past few years the company has worked hard getting certified to install on many different aircraft’s which can be a task on its own. This latest quarter marked a positive development where revenue increased to $7.895 million, a 151% increase compared to last years quarter. To date the company has a backlog of $58 million. The question remains whether the company can continue ramping up revenue quarter over quarter while maintaining positive net income.
Given recent troubles with Boeing 737 Max equipment/software issues I wonder whether Flyht will leverage the opportunity to market their services as an opportunity to make planes and flying safer. Flying has become second nature to a lot of travelers and regulations in some regions are requiring real time flight data. The future for Flyht looks bright and I’m eager to see how the company will perform in future quarters.
Disclosure: I am long Flyht Aerospace. My initial sell target is $4.00.