Q: This very small company involved with drones looks interesting. Please share your thoughts re its investment potential.
Thanks!
Thanks!
5i Research Answer:
We have some other comments posted on FLT today. Fundamentals remain weak, with negative cash flow and losses, but it is not without potential. But right now, at its current valuation, it is more of a drone FOMO trade than a great stock, in our view. Recent contract wins are positive, but it is also selling a lot of shares: the share count has tripled in nine years. It has never had positive cash flow. Insiders are committed at 27% ownership. It will likely keep running with the drone sector, but risks are too high here for us.