Hi there,
The stock has generated quite a bit of interest lately. Since we just answered a question on FLT about a week ago, I'll re-iterate what I said then as nothing has since changed.
Drone Delivery Corp is one of the industry leaders. After years of development and delayed commercialization - the company is finally on the verge of turning a corner. One of the biggest knocks on the company is the fact that it has yet to generate any revenue. It has been a long time coming, but the company is generating revenue for the first time in its history - commercialization is now a reality.
The pandemic has made evident the need and benefits of drone delivery, especially to those in rural and remote communities. This accelerated testing and led to its first revenue generating contract wins. What is unclear, is how much revenue the company is actually generating. Investors should get insight into with the next quarterly results (date TBD). The AGM is being held today, but not all quarterly results are released concurrently with the AGM. Since I couldn't make the meeting, i'll be looking for the transcripts once published. Regardless, by end of the month investors should have clarity.
By my count, it has entered into approximately 5 commercial agreements since February. I would not expect big contracts, as we are still in the early days here. Companies are testing the waters in terms of drone delivery. However, if all goes well it could set the stage for the emergence of drone delivery nationwide. It is also worth noting that in early July, the company started the process to get registered in the U.S. - a market that is considerably larger than here in Canada.
Recently, the company issued shares at a price of $0.70 per share. This will have a short term effect of holding the price down and it will take some time for the market to digest these new shares.
Of note, I am long FLT as i believe in the company's potential. It is well positioned to benefit from increased demand for drone delivery. It is however, all about execution and it still has a lot to prove. If the company doesn't start generating meaningful revenue then it may struggle. An investment in FLT is likely only suitable for the aggressive investor with a higher risk profile.
Mat