|Gama are in a very exciting place, super growth lies ahead;
|Encouraging to see some more small buys causing a move up today.|
|I topped up to, looks a great company to buy and hold for a few years.|
|Indeed. I bought just a few more this morning. The WHI upgrade makes good reading.
Online looks very good too. You can currently only buy a maximum 150 shares at 214.96p, whereas you can sell at least 12,000 at 211p.
It's all set for a re-rating imo.|
|Cheers rivaldo, I`m certainly glad a topped up at the bottom.|
|WH Ireland have today increased their target price to 370p (from 340p). That's a mere 74% upside from here.....
"At a price of 370p, the shares would still only be trading on a current PER of 14x, in our view not demanding given the quality of earnings and growth potential, and would still imply a 15% discount to the peer group, illustrating the considerable upside."
"Gama Aviation~ Cleared for take-off – positioned for growth on a PER of 8x
Gama Aviation is an international business aviation services provider. After facing a number of challenges in 2016, we believe that management actions have positioned the business well for 2017 and beyond. We anticipate growth to be delivered from a number of fronts, including through the recent tie up with BBA, whilst also seeing further improvements in cash generation. Set against this backdrop, the shares currently trade on a FY 2017E PER of just 8.1x falling to 7.4x, which implies a significant 50% discount to our basket of peers. Reflecting the outlook for Gama, in combination with the valuation multiples currently ascribed, we reiterate our Buy recommendation and increase our target price to 370p (340p)"|
|Here's hoping it's a good week, thought it might have a surge today.Anyone ever dealt with Gama or their CEO will know this company is a class above the rest, surely the price will start rising soon?|
|Ah - just been tipped. Could be a good week ahead:
"A small-cap with big potential?
Gama Aviation (LSE: GMAA) specialises in providing private jet services for corporate and government customers. Previously known as Hangar 8, Gama has grown rapidly over the last five years through a mix of acquisitions and organic growth.
The group's sales have risen from $26.9m in 2012 to $203m in 2016. Post-tax profit has risen from $0.49m in 2012 to $16.6m last year. With such rapid growth, you might expect Gama stock to be on a sky-high P/E rating already.
That's not the case. Gama trades on a 2017 forecast P/E of just 8.3.
One reason for this is that the group's expansion has partly been funded by issuing a significant number of new shares. Since April 2014, Gama's share count has risen from 9.5m to 43.9m. This means that earnings per share have not risen as fast as the group's headline profits.
I'd normally be wary about investing in companies where shareholder dilution is a serious risk. But Gama's return on capital employed has averaged 16.9% over the last four years, suggesting to me that the group's acquisitions are making a fair contribution to profits.
Gama's adjusted earnings are expected to rise by 6% to $0.32 per share in 2017 and by 11% to $0.36 per share in 2018. These forecasts put the shares on a forecast P/E of 8.3, falling to a P/E of 7.5 next year.
I'd want to do further research, but Gama looks like a potential growth buy to me."|
|My buy just shown up as a sell. Still mispriced, imho.|
|Three buys this morning, and the price has moved up on each of them....not much stock around perhaps.|
|FYI here's Cantor's summary from their note last week, which increased their target price to 270p.
They now forecast as follows:
this year : 26.4p EPS, 2.9p divi
next year : 29.1p EPS, 3.2p divi
2019 : 33.2p EPS, 3.5p divi
"Positioned for growth
Recent full year results were in line with our forecast, and gross cash and working capital improved significantly. Gama has announced a series of exciting growth opportunities, particularly in the large US business aviation market. Implementation of these plans, and conversion of higher revenues into improved profits and cash will be fundamental in 2017. Our net profit forecasts for 2017-18 are largely unchanged at this stage but we lift our dividend estimates reflecting the improved cash position. The stock has rallied but is still trading on a 2017 P/E of 8.3x; a material discount to peers and the support services sector. We reiterate Buy, TP lifted to 270p from 230p."|
|News - good to see the JV with Hutchison Whampoa growing smoothly:
"GAMA Aviation Offers Mx at Hong Kong Int'l with CASL
by AIN Staff
April 11, 2017, 6:50 PM
Gama Aviation Hutchison (Hong Kong), the joint venture formed in early 2016 between the UK’s Gama Aviation and Hutchison Whampoa, announced at ABACE this week that it has firmed up its new maintenance offering in collaboration with Hong Kong International Airport-based CASL. The new maintenance check packages will be available starting this summer, said Gama Aviation.
|Thanks rivaldo - will take a look.
Still holding GMAA.
czar>> I have GYM. Any constructive critique welcome.|
|OT : czar, I've PM'd you via ADVFN. Hope that's OK.
Re quality companies on low P/E's, there are a few apart from GMAA...
INSE : 16.5p, 1.5p EPS this year rising to 1.64p EPS next year (sector rival to UTW, but great management and prudently run with conservative accounting policies. Against UTW, which is the opposite....)
DKL : 12.9p, 0.88p EPS last year rising to 1.94p EPS this year (palm oil company)
SCH : 260p, 18.53p EPS this year rising to 20.68p EPS next year - but they have a £100m+ cash pile, so the ex-cash P/E is only 9 or 10. And they pay huge dividends of 14p or so per share
XLM : 108p, 10.24p EPS this year rising to 10.98p EPS, plus £20m+ cash pile, plus 6.2p per share dividends|
|Rivaldo, sorry you're right, I didn't pick up on Cantors research. Anyway good to have upgrades coming through. It is getting hard to find quality growth companies on single digit PE's now. I've only identified Gama and Stride, have you any others?|
|I've just got the Cantor's note. They go for eps 29.1p and 33.2p for the next two years and an increased divi.|
|Czar, it's Jefferies who have the 330p target.
Cantor have now increased their price target twice since the start of 2017 to 270p (from 200p).|
|Rivaldo I think they mean upgraded target price from 330p to 370p|
"Atkins and Gama Aviation awarded new Military Airworthiness contracts
Posted 11 April 2017 ·
Atkins and Gama Aviation have secured further contracts with the Joint Helicopter Command (JHC) and Headquarters Air Command (HQ Air) to continue providing independent Military Airworthiness Review (MAR) services for aircraft on the UK Military Aircraft Register, after successfully reviewing more than 1,400 aircraft.
These comprehensive reviews will help the JHC and HQ Air to assure that its aircraft are safe, airworthy and fit for deployment whenever they are needed most.
Since October 2014 Atkins and Gama Aviation have successfully completed more than 1,400 MARs across a wide range of battlefield helicopters, combat jets, large transport and intelligence-gathering aircraft, as well as training and vintage aircraft.
The team of award-winning MAR surveyors provide an independent review that ensures standardised and comprehensive MAR reports for Military Continuing Airworthiness Managers (Mil CAMs). This has included undertaking documentary reviews that sometimes encompass over 50 years of aircraft history.
Martin Chalmers, Managing Director of Atkins’ Aerospace, Defence, Security & Technology division, said “These new contract wins demonstrate the continued confidence the Joint Helicopter Command and Headquarters Air Command have in our military airworthiness reviews and the independent airworthiness assurance they provide to the Military Continuing Airworthiness Managers.
“Providing an agile and efficient service has been crucial in satisfying military clients, who operate in a dynamic and challenging environment. A key enabler for the client has been the team of highly skilled and experienced airworthiness review surveyors deployed by Atkins and Gama Aviation, who not only have an intimate understanding of the task but also the operational changes and pressures that the client has to deal with on a daily basis. By working collaboratively with the client we have helped them to reach their targets, and I am highly impressed by what our teams have accomplished.”|
|Nice - Cantor Fitzgerald have increased their price target to 270p (from 230p) and say Buy:
|To emphasise the point, we have 2 buys this morning and the share price has moved up strongly on both of them.|
|Up 5.5p on a mere £10k of net buying today. Any decent interest here and the share price will be back to 250p+ in a jiffy.|
|Looks like Gama have done a good job Sharjah Expansion.
|Jefferies today reiterate their Buy and 330p target...just to reinforce the point :o))
|rivaldo>> thanks for posting IC article. I agree 250p is conservative.|