FLIR DD: The only COVID-19 play that hasn’t been played out.

by adatausb

Vaccine stocks are sky high. COVID testing stocks are through the roof. For the past month, I’ve been racking my brain trying to figure out what to invest in. After the recent bull market, finding real opportunity is a crapshoot. I’ve been following the news hoping to find a trend, and I think I’ve got it: thermal camera temperature screening. This is where FLIR, the largest thermal imaging manufacturer in the world, comes in. Today, I bought $8K in calls and $100,000 in stock. This is 1/10th of my portfolio so I don’t take it lightly.

The Chart

Let’s start with the chart. The stock is currently at $40 support, is forming a round bottom, and looks prime for a bounce. There was some early interest when news came out that Amazon was installing thermal imaging at all their facilities and FLIR went up 15% in a single day. Since then, hype died down and day traders took profit. Because of the low liquidity in this stock, people exiting positions caused it to fall significantly. Now that interest is picking up again, the same low liquidity is going to help this skyrocket. The time to get in is now, especially with the breaking news that LAX is using FLIR for thermal imaging. I expect this to cause a spike in the stock tomorrow once this hits the news cycle.

Below are some links that I’ve complied. These are small snapshot to show that skin temperature thermal imaging will be the foundation of the reopening. If you search “thermal imaging” on Google News, you’ll see the hundreds of other organizations that have adapted this technology.

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Warehouses/Factories/Manufacturing

Amazon: www.thestreet.com/investing/stocks/flir-systems-soars-on-report-of-amazon-use-of-thermal-cameras

Ford: wwjnewsradio.radio.com/articles/news/ford-says-plants-will-be-back-to-full-production-by-monday

Tourism

Disney: youtu.be/sVoJpCN13S8?t=64

Airports

My personal anecdote: A friend of mine who is in maintenance at a medium size airport said they just spent millions of dollars on thermal imaging equipment.

LAX: lasentinel.net/los-angeles-city-mayor-announces-thermal-cameras-will-be-online-at-tom-bradley-terminal-in-lax.html

Chennai: timesofindia.indiatimes.com/city/chennai/cheenai-airport-tries-out-new-thermal-scanner/articleshow/76366413.cms

Spain: english.elpais.com/society/2020-06-12/thermal-imaging-and-e-forms-how-spain-will-screen-for-covid-19-when-the-travel-ban-is-lifted.html?_sm_au_=iHV3vRZFvT3VNWrjML8tvK34L00HF

Government facilities:

Pentagon: www.businesswire.com/news/home/20200602005242/en/FLIR-Systems-Installs-EST-Screening-Solution-Pentagon

Schools:

vancouverisland.ctvnews.ca/island-school-installs-thermal-camera-ahead-of-reopening-1.4962199

Casinos:

www.reviewjournal.com/business/casinos-gaming/thermal-cameras-latest-eyes-in-the-sky-at-las-vegas-casinos-2039614/

The entire New York subway system (proposed, installation pending)

www.wsj.com/articles/new-york-subway-system-may-implement-temperature-checks-robot-cleaners-11592827200?mod=searchresults&page=1&pos=2 .

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Additional thoughts:

FLIR has been moving incredibly fast on elevated body temp thermal imaging technology. They recently released new software for this very purpose and are well ahead of the competition and are transitioning to a SAAS model after a massive restructuring. FLIR is transforming into a tech company but is trading at an industrial valuation.

THE MASSIVE CHERRY ON TOP:

FLIR has a complete monopoly because it’s the only thermal imaging company that has FDA approved products for monitoring skin temperature. Guess what that means? Every single organization in the United States that is using thermal cameras for body temperature screening MUST use FLIR’s products. There is absolutely no other alternative. That means that every organization listed above is using FLIR.

www.flir.com/discover/public-safety/thermal-imaging-for-detecting-elevated-body-temperature/

My personal research:

  1. I called FLIR, pretending to be a customer. Their backlog is several months, and the rep said they’ve never had a backlog this huge.
  2. I called over a dozen organizations that adopted thermal temperature screening to ask what vendor they’re using. Seven that gave me information on their thermal cameras, and every single one is using FLIR. I even got through to one CFO who personally approved the thermal camera purchase for that facility. He said that only FLIR was considered because it was the only vendor that fit the requirements for human use. This is consistent with them being a monopoly as stated above.

Positions: $8k in July 17th $40c, $100K in stock @$39.80

 

Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence.