||EPS - Basic
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Real-Time news about Advent Air (London Stock Exchange): 0 recent articles
|stluke: Had to be a buy, price would not have reacted positively if it hadnt surely, that fact it has coinsided with soon to be released results i guess bodes well, company has expanded rapidly over the past 12 months and although the share price has ticked up slowly throughout the year i strongly believe this remains undervalued.|
|carterdl: I'm not surprised you took the chance to top up (as did I). But I am surprised this share's thread is so quiet. Maybe it's just an indication Advent Air is undiscovered by most investors.
You're right there is a commodity related angle to it, but from what I can tell it ticks all the boxes as a great investment in the making: has net cash making up 14% of it's market cap, has a clear growth strategy and means to achieve it, limited regional competition, is very lowly rated (less than 8 times this year's earnings), pays a dividend, frequent share buybacks, regular 'good news' updates, a great graph, good and enterprising management, it's also a possible takeover target. How many shares can boast all that?
I think there's a great chance the share price will be over 40p within a couple of years, possibly sooner. Indeed, GE&CR already have a price target of 43p.|
|scotty1: GE & CR 15/7/07
Advent Air Increase in Valuation*
Total no of shares
12 Month Range
Travel and Leisure
On 27th June, GE&CR published a detailed note on Advent Air, recommending the shares as a buy at 14p and raising its target price by almost 50% to 43p.
The Company's strategy is based on adding additional services to its schedule by adding new routes. Advent intends to implement this strategy via a three pronged approach: 1) expand into additional destinations in the Southeast Asian region, 2) grow its aircraft charter business and 3) expand the route network and schedule within Western Australia and the Northern Territory. This can be enhanced by an increase in freight capacity and selective code-sharing and interline agreements. Code-sharing, a flight operated by one airline but jointly marketed by more than one airline - a key feature of major airline alliances, can add to Advent's passenger numbers to new routes, as well as giving it the opportunity to deploy its own aircraft.
The company's strategy of securing long term charter contracts to service resource production companies in Western Australia and the Northern Territory has served the Company well. Resource companies benefit from Skywest's relatively modern fleet of large aircraft, reliable services and on time performance schedules. Advent benefits from the guaranteed income streams. The scheduled charter contracts with major mining houses such as BHP, PIO and Argyle provide Skywest with the opportunity to further utilize its existing fleet and contemplate further expansion of scheduled charter services.
The monopoly routes Skywest currently enjoys are likely to continue, as regional governments retain significant regulatory powers with respect to air traffic, partnerships, interline and code-sharing arrangements. Since the publication of our note, the company has announced the appointment of a new Company Secretary - Jasmine Loh.
Assuming very little growth, no significant change in the number of routes offered, no change in accounting policy and no further share buy backs by the end of this year (even though share buy backs are likely to continue), we see earnings growing by at least 50% in the current year. We anticipate that pre-tax profits for the year to 30th June 2007 will increase from £1.94 million (S$5.79 million) to £2.95 million (S$8.8 million) and that £5.54 million (S$16.50 million) is achievable in 2008. The benefits from the enhanced operating capacity of more aircraft coming on stream from December 2006 onwards (two in December 2006 and one in April 2007) will be more apparent in the 2008 full year financial results. The effect of being able to utilise historic losses (as a result of buying out the minority stake in Skywest) will be to reduce the tax charge from 2007 onwards and thus to boost earnings.
At 15p, the shares trade on a very low prospective earnings multiple of just 9.5 this year's projected earnings, and 4.93 times the year to June 30th 2008 projected earnings. We regard a current year price earnings ratio of 15 as a fairer reflection of the highly visibility and strong earnings growth which Advent is, and will continue to deliver. Hence, our target price, based on a 15 times forecast earnings for the year to June 30th 2008, is 43p|
|standish11: If the fundamentals are strong-as they appear to be in this case-then that will be reflected in the share price as and when investors become aware of them.Incidentally,Tom W always declares an interest as he is required to do and does not carry out short term trading.Also I do not think that he has a holding in this stock.|
|this_is_me: It is a commentary on the share price graph.|
|this_is_me: After the post flotation sell off the share price has been drifting up and should continue to do so. I don't think that being listed in London, having its operations in Australia and run from Singapore helps the share price.|
|wookey: It seems an unfortunate fact of life that before a share price plummets its BBS is filled with bone headed idiots acting the big guy by swearing at each other. Knock it off fellows.|
|knowing: But those with highly profitable routes will make a fortune especially if oil prices drop. There have been many cases of new issues that have dropped on open only to rebound very strongly. You take your pick. Unless there is a sell which has not been shown then todays trading does not justify the share price.|
Advent Air share price data is direct from the London Stock Exchange