Hi there,
FLT is an interesting one - first off, I owned the company for about a year but did sell out this past fall. Missed out on the current run, but still ended up locking in a profit. Before we get into why I sold, I can tell you that I like the company's products and it is well positioned to meet a growing need. One of the biggest knocks against it was it had no proven business model and has not generated any revenue. This is true, and it is why I avoided the stock for years (but kept an eye on it).
FLT was all the rage a few years ago but it took the company much longer than expected to get to a stage of commercialization. Now that the company is finally here, it will be about how quickly it can ramp up revenue. It has excellent products, has the necessary permits to conduct flights from transport Canada - all it needs is commercialized contracts. It is why I decided to jump in on the company - the stage was set to start generating meaningful revenue. Since September, it has signed several letters on intent - but these are not yet commercialized contracts - just stating that they cooperating and working towards an agreement. Worth noting - there has been no follow up on any of these LOIs - so unclear how (or if) it will translate into real revenue.
It has started to generate some (~26K in Q2 and ~36K in Q3) but nothing material. This is especially true when the company posted negative operating cash flow of 10M in the first nine months. It needed to raise money to keep the ship sailing and it did in December when it raised 13M for a share offering. At their current pace - unless they start to generate meaningful revenue or reduce cash burn, they will likely need another raise this year.
Which brings me back to why I sold. In August, the company missed the deadline to file its financial statements - for the next month, the company provided no updates on why, nor did they issue a press release indicating they had actually filed. Now, they eventually did - but no press release to accompany it - this is a rarity. When this played out, it was a red flag for me and I bailed. If the company cannot meet basic deadlines to file, does not provide any material insight as to why, and quietly files without issuing a release - that just doesn't sit well with me. Worth noting, financials are still not on their website - you have to go to SEDAR to find them. It also did not file a customary press release in conjunction with Q3 results.
It may be much ado about nothing, but I do have certain standards. Sure, I missed out on the current run up - but it is all built on speculation again. Even the company released a statement that there was no material change that warranted the uptick in price. Purely momentum driven.
This isn't to say the company won't be successful, and I liked their products enough to invest in them. However, if I don't have trust in management then I'll put my investments elsewhere - which I did.
Mat