Amedeo Air Four Plus Share Discussion Threads

[clive7878] 23/8/2023 18:59

2wild - could be a wise move. Next divi of maybe 1.75p - October.
I was wondering - do they pay dividends gross or net of 20% tax,
as I don't receive a dividend statement ? We could see a rise in share price
around just before the ex-dividend date.

[2wild] 23/8/2023 16:30

Took profit Elsewhere. Reinvested at just under 47.4p, Yielding 14.7% after costs. Should get another dividend announcement in about 6 weeks time.

[my retirement fund] 23/8/2023 08:40

A380 lovely plane, terrible engine. Emirates Airline chief Sir Tim Clark has repeated his call for Airbus to develop a re-engined A380neo. https://www.flightglobal.com/airlines/clark-reiterates-plea-for-a380neo/153733.article

[clive7878] 22/8/2023 17:06

Sounds very promising !

[andyandyoj] 21/8/2023 14:56

From the invitation to the webinar: Mkt Cap: £140m | Prem/(Disc) to NAV: -58.9% | Dividend Yield: 15.2%

Amedeo Air Four Plus is an aircraft leasing fund with a fleet of 12 aircraft (six A380s, two Boeing 777s and four A350s) leased to Emirates and Thai Airways. The aircraft are leased for 12 years from acquisition and the intention is to return capital following the sale of the aircraft. A positive industry backdrop may widen the range of options for AA4 when its leases eventually approach expiry.
Encouraging progress- AA4’s results for the year to March 2023 showed encouraging progress, with rent income rising by 29% and NAV per share by 24%. Over the year, AA4 returned £29m to shareholders and after the year-end, it raised the quarterly dividend to the current run rate of 1.75p (7p per annum).
Much improved backdrop - The recovery of the civil aviation industry from the trauma of the COVID pandemic continues. Demand for air travel remains strong. Industry capacity has not quite returned to pre-pandemic levels but is expected to happen within the next year. With new aircraft supply constrained by manufacturer supply chain problems, a supportive environment for second-hand aircraft values has emerged. This should provide AA4 with more options as its current leases approach their end in from late calendar 2026 onwards.
Dividend underpinned by Emirates - The run-rate 7p dividend represents a dividend yield of 15.2%. It is underpinned by lease payments from Emirates, the lessee on 8 of the 12 aircraft in the portfolio.

[clive7878] 21/8/2023 12:42

Me and my wife flew from London Heathrow to Hongkong with Cathy Pacific on a A380, no turbulence very smooth, best plane we ever flew on.
Looks like Emirates will give the A380 a new lease of life. As they said the A380 may be cost more to fly, but then if one considers that they are either a) carrying twice as many passengers as a smaller plane, or b) they can charge passengers more for a pleasant flight having more seat room and better food, then it could make more economic sense.
I can't help thinking that that the share price of AA4 considering the asset value and dividend is undervalued, mainly because many investors has never heard of AA4.
Although I believe that AA4 is not on the AIM market, however I did an exercise of some of the stocks on the AIM market and the majority are losing money. One could do with being up to date how all stocks are performing rather than relying on tips and the I.C.

[andyandyoj] 18/8/2023 13:15

Emirates at 97% of 2019 (last precovid) traffic.

[clive7878] 16/8/2023 18:33

I suspect that dispite the flat share price of late & the low trading rate any future negotiations could have quite an effect on the share price - one way or another.
How much does AA4 though depends on the Emirates ?
What would AA4 be worth if the Company sold out tomorrow ?

[andyandyoj] 16/8/2023 14:42

Emirates is really the game in town

[clive7878] 16/8/2023 14:32

Are we saying the Emirates or someone else could be interested in buying aa4 planes instead of hiring them, as the asset value as I understand is over double the share price ?

[andyandyoj] 16/8/2023 12:27

Main reason is the upcoming negotiations with Emirates for the value of the planes. Very interesting to listen to the last annual general meeting where they discuss the price paid by Emirates for the DNA1 A380. It’s a commercial negotiation no matter what the contract says as it costs a lot to return aircraft in full or even half life condition. Hence the DNA1 aircraft was $30m despite being older and less valuable than those held by AA4. Companies like Elliot have bought in here and in the two Doric funds as the negotiations have the possibility to significantly lever up the NAV per share. It’s a deep value play that is highly leveraged on one client - almost the very definition of a special situation. If it comes off the rewards are disproportionate. If there is a problem then they still have downside protection through the high yield.

[petersinthemarket] 16/8/2023 12:18

>Mattjos, #529
Your list of shareholders was interesting, but I would appreciate some further explanation. I note that many of the holders are hedge funds and I don't understand the significance of that fact. Why would hedge funds be particularly interested in a travel company? [I'm not yet a holder].
pete

[clive7878] 15/8/2023 22:43

We do need more trading volume to move the SP, which is not if but when.

[casholaa] 15/8/2023 15:20

You don't need 'other investors'. I'm just enjoying the ride.

[clive7878] 15/8/2023 13:05

The problem is AA4 is not on many investors radar screen. Even my broker had not heard of them before.
One needs to investigate stocks before they are written up in the IC.

[clive7878] 14/8/2023 19:20

Mattjos - all makes sense
Offer price today 47.45 up from Friday of 47.29 - but less than 47.50 on last Monday.
Both offer & bid price very marginally up today 47.45 from 47.29 and 47.11 from 47.06 but we need much higher trading volumes to really move the price.
Hopefully when the selling supply drys up - the share price will break out.
Be interesting to see what happens to the share price when it goes ex-divi in October
Maybe no major change in share price for sometime to go,but has to be worth more than the current price.

[mattjos] 14/8/2023 13:40

you see these 'overhangds' time-to-time in the market. Constant buying does not seem to result in price appreciation simply because there is a seller feeding the market.
In this instance they are not focing the matter - simply selling to meet demand.
Often in such situaiotns, the seller is actually the only source of shares & once they have sold out / trimmed to target then it only takes very light further buying to cause a disproportionate increase in the market price.

[podgyted] 13/8/2023 09:59

Was good to see the bid price rising this week.

According to Stocko 10d/3m volume was up 109% - so, fingers crossed, interest seems to be improving here.

[clive7878] 11/8/2023 14:20

On Monday the bid offer price was 46.0 / 47.5
they say the last trade of 31k at 47.24p was a sell,
but the quoted price at present is 47.06 / 47.29p
so the bid and mid price is effectively rising 46.0 to 47.06p
with the spread narrowing.
The offer price though has actually fallen 47.5 to 47.29p based on trades
So logic says now that the offer price should now rise next -
but who knows what the MM are thinking
as they don't appear to be in a hurry to raise the offer price.

[2wild] 11/8/2023 13:58

The quoted spread before Price improvements has increased by 2.17%, on the bid, this week.

[clive7878] 11/8/2023 12:44

Spread now 47.07 / 47.29
Offer no higher than Monday
But believe bid has risen slightly.

as btgman said - the appropriate share price with a 14% yield
going down to a 10% yield would then be 66p according to my calculation.
One thing holding the share price back maybe that half the stock is owned by fund managements.

[2wild] 11/8/2023 11:22

Spread now 47.0 to 47.5p

Looking good for rise to 50P by ex Div day. Perhaps by the end of this month.

[clive7878] 11/8/2023 10:22

Bid price is slowly going up 47.06p now.