$FLUX Continues Torrid Trading +43% to $2.35 No
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Posted On: 06/13/2018 11:21:45 AM
$FLUX Continues Torrid Trading +43% to $2.35
Not sure what's driving the share price specifically - but revenue growth has been very strong +400% in Q3 and +287% in first nine months of FY 2018. Flux is on track to reach $4M in FY 2018 revenue up from $0.9M in FY 2017 and likely to more than double revenue in 2019 with proper funding.
Major Fortune 500 customers are deploying lithium lift packs as industry support gains traction and more and more companies enter market - however not with the technical approvals (UL listing) and OEM approvals etc. that Flux has achieved.
Certainly a company targeting a $10B market opportunity and with a strong industry position and customers could sell for any range of market caps, and $62M is not at all crazy if we assume strong 3-5 year performance from Flux going forward and we look at the caliber of customers so far - huge and highly sophisticated businesses that are no doubt seeing every option but deciding to rollout with Flux.
There's also the potential of M&A as larger companies consider Flux as a target to speed their market entry - but that's a wildcard that one cannot even begin to gauge. We do IR for Flux and are trying to understand what's caused this sharp run up all of a sudden. Possible answers include industry chatter on Flux's forward progress with major accounts and OEMs, it's imminent launch of new larger products for Class 1 forklifts, exposure for the Reach China conference last month - with investors and strategic partners, and a growing base of investors.... but really not certain what is driving it.
Not sure what's driving the share price specifically - but revenue growth has been very strong +400% in Q3 and +287% in first nine months of FY 2018. Flux is on track to reach $4M in FY 2018 revenue up from $0.9M in FY 2017 and likely to more than double revenue in 2019 with proper funding.
Major Fortune 500 customers are deploying lithium lift packs as industry support gains traction and more and more companies enter market - however not with the technical approvals (UL listing) and OEM approvals etc. that Flux has achieved.
Certainly a company targeting a $10B market opportunity and with a strong industry position and customers could sell for any range of market caps, and $62M is not at all crazy if we assume strong 3-5 year performance from Flux going forward and we look at the caliber of customers so far - huge and highly sophisticated businesses that are no doubt seeing every option but deciding to rollout with Flux.
There's also the potential of M&A as larger companies consider Flux as a target to speed their market entry - but that's a wildcard that one cannot even begin to gauge. We do IR for Flux and are trying to understand what's caused this sharp run up all of a sudden. Possible answers include industry chatter on Flux's forward progress with major accounts and OEMs, it's imminent launch of new larger products for Class 1 forklifts, exposure for the Reach China conference last month - with investors and strategic partners, and a growing base of investors.... but really not certain what is driving it.
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David Collins, Managing Director
Catalyst Global Investor Relations
www.catalyst-ir.com
dcc@catatalyst-ir.com
212 924 9800
David Collins, Managing Director
Catalyst Global Investor Relations
www.catalyst-ir.com
dcc@catatalyst-ir.com
212 924 9800