Australian (ASX) Stock Market Forum

FLC - Fluence Corporation

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Trading halt this morning. A Capital Raise. I seem to know how to pick them??? Normally I would panic but today I feel unsettled even though I only picked this stock for a tipping competition.

Do they want more money to build more plants/capacity/machinery etc?? That sounds most logical?? I wonder how much they want? Can’t borrow any money instead because cash flow is too low?

A company like FLC really deserves to succeed - great idea, great opportunities, etc but like many companies in Australia. It’s just very hard with many hurdles to overcome. Providing water to humanity is a positive. I am sold on its story. Business management- that’s a story I need to learn. I wish I can add more to this. I am only trying to add more discussion about stocks. Even if it just asking more questions.
 
Faramir, my thoughts would be, if you already have a small position, remain patient and see whether the company can execute the business growth as they claim. Continue to check back against their timeline for the move to cash flow positive, confirm the revenue growth stays on track and that it flows through to growth in eps.

You can always average up as the company releases confirmation of progress in line with expectations and your conviction firms. If they start missing then you always have the option of exiting with less loss of capital.

Having a great narrative is one thing, having the right management team to execute the narrative and translate it to a successful, enduring and profitable business is quite another!

The obvious concern is they barely have enough cash to make it through another quarter - hence the CR.

I dont like the way the presentation talks about EBDITA +ve for 3rd Q 2018 - but doesnt mention negative EPS and cash flow.

Have you had a look at how much skin in the game management have? Also what sort of incentives are they subject to? Do they align with the business and shareholders or with self interest and short term share price?
 
I have no position. The only "position" I will ever take is for the tipping competition - just for fun. I am sure that Directors do not have much skin in the game but I need to confirm this. @HelloU is right. They are just all talk but I still like the story. It doesn't mean I need to take a position.
 
Containerised water treatment strikes me as a little ho hum, i mean its nothing special, water is a good business with a growing market and treatment turning black and grey water into usable water all good, just i dont think FLC has anything special.
 
Ordinary price reaction to the $33 million cap raiseo_O:( ….. Sophs taking their share of arbitrage I assume?? … Should rise from here:)
 
@HelloU
Is this the water filtration company that you are talking about? I haven't put one cent into this. I have stopped following this company. Yes, there have been a string of positive announcements. Still, not enough to capture the market's attention - I think. I believe PET is a better water company. My other water company which I did put funds into is a dog. It is really a mining technology company with Water technology added on. I am undecided about FLC. So I am doing NOTHING!!!!

FLC Chart 24 May 2019 at 1943hrs.png
 
Faramir said:
@HelloU
Is this the water filtration company that you are talking about? I haven't put one cent into this. I have stopped following this company. Yes, there have been a string of positive announcements. Still, not enough to capture the market's attention - I think. I believe PET is a better water company. My other water company which I did put funds into is a dog. It is really a mining technology company with Water technology added on. I am undecided about FLC. So I am doing NOTHING!!!!

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yeah mate prolly a good call atm (strangely where you have the yellow was when my sell triggers popped up at the time of my last post - but i went away on a cruise - the rest is history)

they just cannot seem to spend less than they earn - to put it simply.

All the excitement was when some fund got onboard and then there was a flurry of fresh blood. i expect that fresh blood has now scabbed and is falling off and part of the current woes ...... they want to list US in a couple of years so will have a fair bit of work to do. At least they have stopped making claims they do not meet but that inability to make profit is the albatross here. The great hope of taking over china seems a little more difficult than expected.
see ya.
 
FLC breaking out of an almost two month period of consolidation between 40c and 45c beginning yesterday and extending those gains this morning following today's announcement that it will need to establish a new facility in China's northeast after signing an Investment Cooperation Agreement with The People's Government of Xinglongtai District and Liaoning Huahong New Energy Co., Ltd.

The Agreement will make Fluence the preferred supplier for wastewater treatment equipment for Liaoning Huahong, which has made a volume commitment to purchase Aspiral™ and SUBRE products with a capacity of 52,500 m3/day through the end of 2021 and minimum revenue targets for 2019 and 2020.

Looks like Fluence is starting to make real inroads in the Chinese market. Share price up 9.78% to 50.5c so far today after gapping up this morning. Volume increasing.

big.chart-FLC.gif
 
Knobby22 said:
I'm getting keen on this company.
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After a quick read I tend to agree …. but the price action is still very ambiguous … I suspect the recent large +$36 million cap raise at 44 cents is causing some of the stalling etc but on the flip side ….. they raised a lot of cash at 44 cents:eek::D

Definitely one to watch for a low entry at the moment if you like the science etc.
 
I am on the sidelines with no funds. I have ever lost interested, so I will admit I am out of touch with Fluence. There's a positive announcement. It climbs to over $0.50. Then it drifts down, then there's another announcement, it climbs up again - only to drift down. Maybe when cashflow is positive? Maybe when share price stops drifting? Maybe when I have funds????? Still too speccy for me. Is it too early, maybe another few years before its technology is accepted and its customer base is big enough to attract more and more customers. We seriously need a hype up Water stocks FOMO theme, just like BNPL stocks experienced in the last couple of years.

Given the drought we have in Australia, not many water are doing well. Wait, we need the rest of the world to endure drought, then maybe Fluence has a chance. I really should investigate Fluence competitors but I'm not that serious about Fluence. Look at competitors if I become serious about Fluence (will it be too late by then???)

Sorry but chart tonight. The only thing I would see is my wannabe emotions going up and down, with FOMO to spice up my emotional reactions every now and then.
 
@Faramir, yes, it's a bummer that it flies under the radar and keeps going sidewise. I'd disagree with one point though, cause several water stocks actually did well in 2019 (PET, DEM, SDV, CG1). PET overheated. But I also don't understand why FLC gets so little attention, their business seems to be solid and they publish lot of positive news. I find elsewhere people are less picky about being a company not cash positive yet. That some of the big projects are in rather sketchy countries doesn't help I guess. Like the 20m project in Ivory Coast.

I have really big hopes for it though. Their product could not be easier to deploy on site in the worst conditions. And conditions worsen all around the planet sadly.
 
Fluence issued some 81M shares last October through a placement at 44cps.
FLC share price closed today at 30cps.
In between, a few million options were not exercised by directors and employees as the share price had dipped below offer.
FLC has geographic exposure of production and projects to COVID-19 and this has weighed heavily on their current share price.
The interesting flipside is that FLC's water treatment products would benefit China as COVID-19 appears to be transmittable through sewage.
Maybe a bottom-up approach to investing is needed?
 
A quick side note: today is the first since COVID-19 broke out that more new cases were reported outside of China than in China itself. Moreover, Chinese leadership has just asked industries in unaffected regions to return to full production.
Unfortunately FLC has a manufacturing facility relatively close to Wuhan (region next door) so is unlikely to get back to full production for now.
I don't own FLC shares, but I reckon a dabble at 25 cents would be worth a punt. That said, the falling knife of COVID-19 has deeper to cut, and this is one for picking up after it safe to so.
 
I am picking FLC for May 2020 Tipping competition.

Hoping for more announcements like these:
Expects to be Cash Flow Positive
44h97sp1lyj19j.pdf

Hopefully, the next Quarterly Report will be much better than this Quarterly Report:
44h977m9nn5png.pdf

Still a speccy to me - no funds - again I won't put real money into this company but I hope things do go well for FLC.
 
FLC has achieved positive operating cashflow for the quarter ended June 30 (Q2 2020) in line with previous guidance.

cash from $16m to $20m
 
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