AIR Partner Share Discussion Threads

[cockneyrebel] 23/10/2012 08:40

Cheers Ayl30, nice to see you again :-)

XD for 12.75p divi mid Nov and a trading update early Dec - those factors must draw buyers in over the coming weeks imo.

I've added this morning.

CR

[ayl30] 17/10/2012 15:55

Good to see CR aboard, welcome!
There seems some solid support now for the rise in price in the apst few days, perhaps a feeling that the bottom has passed. I would have thought that with a fair wind 400p is on the cards in next few months, as CR says a lot of 'cheap' companies around and with a good div as back up this has to be one of them

[nil desperandum] 17/10/2012 13:25

goliard, yes I am just looking at what we have today. If things pick up then sure we can look for more... and if they decline then we'll revise down.
The directors are obviously fairly confident that they are heading in a positive direction, which is great ... let's see them deliver some of that.

[goliard] 17/10/2012 13:00

Nil Desperandum, I think that is basically correct, but I expect their profitability to increase as business recovers,so I would then expect to see over 500p. Also, if business does improve then the multiple of 10x will look low. Adding this together and assuming 1-2 year view, my target is 550p to 600p. The big factor on top of this is the dividend, so if we do reach those levels I would remain a holder unless there was a better place to put my cash.

If a target like this is so simple to see then it would surprise me if there are not others looking at the company.

[spob] 17/10/2012 11:18

do we have bid rumours ?

[nil desperandum] 17/10/2012 11:11

Looks like we both got lucky with the timing CR - I bought Fri & Mon too.
I tend to be LTBH so won't be trading - happy with 7% yield at my average buying price of 259p.

Nice 20% upside in a few days, but simplistically I think they have a way to go:
value? let's say 10xEPS (29p) + NTAV (116p) = 406p - just as a rough guide.
Sound reasonable?

[goliard] 17/10/2012 10:57

Certainly cheap and an excellent return on investment so far! I don't know how much overlap with the likes of Netjets these guys have, but it must be on their radar for a takeout.

[cockneyrebel] 17/10/2012 10:52

Bought in on Monday - looks extremely cheap here imo.

Amazing how many cheap stocks about.

CR

[lbo] 16/10/2012 13:00

Business jet charter up 8% at Air Partner

[topvest] 15/10/2012 21:28

Looking good today. Definitely been a bit unloved of late. I've started a bit of a FTSE fledgling strategy - well worth taking a position on some of the undervalued companies in this index imo. Some good companies that have fallen from grace, but are lower risk than some of the rubbish on AIM.

[lbo] 15/10/2012 19:49

Oriel Securities upgraded its stance on Air Partner (AIP) from "hold" to "buy", citing an undemanding prospective earnings multiple of 12 times for 2013 and an attractive dividend yield of 7%. The air charter company successfully reduced its cost base by £0.9 million and the broker believes that the firm's new focus on the private jet broking market will help drive growth. Oriel noted that the group achieved sales growth of 67% last year in the UK private jet sector, with the number of clients rising by 32%. The shares soared by 35p to 292p

[ayl30] 15/10/2012 16:50

Quite agree with pvb - silly idea to start another, lets all use maximoney's

[goliard] 15/10/2012 08:08

I am joining the party here today. Decent write ups from a couple of FT columnists which should spark some interest. However, my main reasons for investing here are the price, the yield and the lack of any debt. Not too many companies around that trade on an adjusted PE of about 4 or 5 (once cash is stripped out) and are profitable and paying such a large dividend. Not sure if I have managed to catch the bottom of this fall, but will happily top up again if we drop below 220p without bad news.

[topvest] 12/10/2012 20:36

I've bought a few today. Looks reasonably good value at this level. It is a reasonably well run business. The increase in the final dividend was encouraging.

[spob] 12/10/2012 15:22

and whichever way you cut it, it is far preferable to have 16m net cash than 16m net debt

[spob] 12/10/2012 15:10

i didn't say free to return to shareholders

i said in terms of the viewpoint of someone buying the company outright in an acquisition

and their ultimate cost of buying the underlying business outright after adjusting for cash

[davidosh] 12/10/2012 14:52

You cannot simply say the £15m cash is free to return to shareholders as that is not the case here. Net current assets are only £11.6m and at least £5m of the cash no doubt fluctuates through the year as working capital needs rise and fall.

At least the cash backing means the dividend is secure and if they do not need that level of cash for investment into the business then they may do a special dividend at some stage which would then see the shares reduce by the same amount that is released in theory anyway.

I have only just taken an interest here but clearly a return to growth in the actual business and revenues is what we really need to see.

[pvb] 12/10/2012 13:47

That's an interesting thought spob. Thanks.

[spob] 12/10/2012 13:33

the point is if you buy a company with net cash, that cash becomes yours effectively lowering your purchase price of the actual underlying business

and if you buy a company with net debt, that debt becomes yours so you are effectively increasing your purchase price of that business

dont ignore net cash or net debt when valuing companies


market cap here 26.7m

but the company has net cash of 15.7m

therefore the purchase price of the underlying business here is nearer 11m than 27m

[pvb] 12/10/2012 13:23

You're propably right about the ADVFN figures. Whenever I check internet sites figures against the numbers in company_ R&As I frequently get different results.

Why would 'stripping out the cash' lower the per? After all, if some of the share price is cash and you strip that out, so lowering the sp, then the per would be higher. Then again, how much are they earning on the cash compared to the real earnings...

So the per figure can be '_flexible', which I suppose makes sense, as the earnings are.

[spob] 12/10/2012 13:16

dont take any notice of any advfn figures

they are nearly always wrong or out of date


by the way, if you strip out the cash the true pe is much lower than 9

[pvb] 12/10/2012 13:05

I make that a per of about 9 currently (260/29.1) rather than less than 7. How long typically before the ADVFN figures get updated?

[spob] 12/10/2012 13:04

I always start one for any stock i am watching or if i buy a stock for my own point of reference