FLYHT Aerospace Solutions Ltd V.FLY

Alternate Symbol(s): FLYLF

Industrials Aerospace & Defense

FLYHT Aerospace Solutions Ltd. provides solutions for the aviation industry. The Company's aircraft certified hardware products include Automated Flight Information Reporting System (AFIRS), AFIRS Edge, Tropospheric Airborne Meteorological Data Reporting (TAMDAR) and FLYHT-WVSS-II. AFIRS is an aircraft satcom/interface device, which enables cockpit voice communications, real-time aircraft state analysis, and the transmission of aircraft data while inflight. The AFIRS Edge is a 5G wireless quick access recorder (WQAR), aircraft interface device (AID), and aircraft condition and monitoring system (ACMS). TAMDAR system is a sensor device installed on aircraft that captures temperature, atmospheric pressure, winds aloft, icing, turbulence, and relative humidity. FLYHT-WVSS-II is an externally mounted aircraft sensor that detects and reports water vapor as relative humidity. The Company's wholly owned subsidiary, CrossConsense, offers skilled services to the commercial aviation industry.

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FLYHT Aerospace Solutions Ltd > FLYHT Aerospace: 2 Incoming Monopolies Practically Free

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Comment by RayDonovan78on Apr 12, 2024 6:26pm

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Post# 35986870

RE:FLYHT Aerospace: 2 Incoming Monopolies Practically Free

This guy must have read for to many KRC reports !!!

CF105 wrote: If you didn't get a chance to read the April 8th Samuel McColgan article at seekingalpha.com because of their membership requirement, it is worth trying the link again. Seems to be working.

https://seekingalpha.com/article/4682632-flyht-aerospace-two-incoming-monopolies-for-free

Sample from the article...

McColgan:

"Thesis: The legacy business is currently unprofitable but is arguably cheap. The price-to-sales ratio is around 1, despite half their revenue being high-margin, ultra-sticky, steadily growing SaaS. I argue this SaaS revenue should have a much higher multiple, at least 3, if not more. Thus I believe the overall price-to-sales ratio should be at least double what it is today. I believe that by the time the legacy business turns profitable, which I expect would likely happen in late 2025, this repricing would likely occur.

However, I expect the overall business to turn profitable much faster, perhaps this year, thanks to two new growth opportunities in areas I believe FLYHT could have a monopoly. The prospects for these growth opportunities dwarf the core business. While it is hard to estimate just how well and quickly they will land with these products, I believe by the end of 2025, FLYHT's annualised 4Q2025 operational profits would be in the region of $3m-14m (that's around .08-0.35 EPS considering 40M shares outstanding).

I believe the stock price undervalues the legacy business, mitigating my downside risk. Additionally, the growth opportunities provide tremendous upside, while I feel I'm getting them entirely for free. I consider this a long-term investment provided they make good progress in the launch of these two new products, as the growth runway is very long."