Monday, 24 February 2014

BNN – McWhirter: FLYHT Aerospace Could Be A Double!

FLY:TSX.V

FLYHT Aerospace hit $0.61 today after comments from Selective Asset Management Portfolio Manager, Bob McWhirter, while appearing on BNN TV’s, The Street.

Mr. McWhirter discussed FLYHT’s long- term, high profit, recurring revenue model and potential double as outlined in Byron Capital’s recent research report with its twelve-month $1.25 price target. To view The Howard Group’s blog of January 24th, click here.

Much of the future increase in recurring revenue will be driven by FLYHT’s relationships. In its recently released Technology Watch List report on FLYHT, Clarus Securities outlined the company’s positive position in China and the L-3 Communications and Airbus relationship.

“Leverage relationships with channel partners to penetrate OEM market (factory installs):
  • L-3 Communications: FLYHT has cemented a strong partnership with L-3 Communications that was originally announced in 2009. L3 is the world’s largest supplier of black boxes and through this partnership is licensed to resell FLYHT’s technology. FLY will generate an initial royalty upon installation and a recurring revenue component once installed to support the ongoing communication backbone. The L-3 relationship is bearing fruit as it was able to secure the Airubs A320 contract for the Iridium Solution. L-3 drove the initiative with Airbus, thus making the FLYHT technology a factory option on the Airbus A320 family.
  • Datang Mobile Aviation Group - In late 2013, FLYHT announced that it had been selected (through Datang) to provide the AFIRS 228 end-to-end solution along with FLYHTStream to the Commercial Aircraft Corporation of China (COMAC) and that the system has been successfully installed and tested on the ARJ21. Going forward it will be a standard feature of that aircraft which is anticipated to start shipping in late 2014 and currently has 400+ units on order, primarily from Chinese airlines.”
Click here to view the video clip. Mr. McWhirter discusses FLYHT at the 3:50 mark.



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