Gama Aviation Share Discussion Threads

[roddiemac2] 07/3/2016 10:52

rivaldo ,

I have tickled into these in recent weeks: definitely not much stock about.

[rivaldo] 07/3/2016 08:52

Welcome jgoold.

Nice to see upward movement today on just a couple of small buys. Perhaps not much stock around after the director buying and in the run-up to results.

[jgoold] 01/3/2016 16:29

Just opened a small position here - good luck to all!

[rivaldo] 01/3/2016 10:55

Just noticed that whilst I was on hols recently there was significant director buying here:



Not bad at all - 65,000 shares bought at 268p, i.e around £175,000, so quite significant amounts.

More to the point, the buys are timed at the very last moment the directors could buy before the closed period kicks in pre-results.

Which indicates that the results and outlook should be good, as per the in-line trading statement.

Finally, it's particularly interesting to see the CFO buying over £50,000 of stock - in a maiden purchase. This is usually a very good signifier.

[jgoold] 29/2/2016 17:42

Thanks Rivaldo. I'll have another look tomorrow.

[rivaldo] 29/2/2016 14:35

Latest forecasts are:

last year : 23.88p EPS, 1.62p dividend
this year : 30.20p EPS, 1.97p dividend

A P/E of 8.8 is much too low and should correct over the next few months imo.

Jgoold, your extract is from the 2015 interims and is good news as Dryden has underwritten any contract losses arising from his non-competing interests. Since nothing has been mentioned in the full year trading update we can further presumably conclude that this is a non-issue.

Good news - GMAA has achieved ISO 9001:2015 accreditation, "the first company to be accredited by TUV Rheinland North America, a global leader in testing management systems":

[jgoold] 24/2/2016 09:53

I've been researching this company with a view to buying in. I like most of what I see but the IC raised a concern over a departing Director saying:

"But the most eye-catching feature of these results was the resignation of Hangar 8 founder Dustin Dryden with immediate effect to pursue what the company calls "non-competing business interests". Before he goes, Mr Dryden has agreed to underwrite $2m worth of uneconomic contracts which were entered into with customers who had mutual business interests with Mr Dryden."

I can see no other references to this issue since the article and the RNS where this was disclosed but with few details.

Can anyone shed any light on this, particularly whether it's been resolved or what the maximum exposure might be?

Thanks

[rivaldo] 11/2/2016 07:35

Partnership news from the Middle East:



"Its all Go as Gama sparkles at Sharjah
Posted 4 February 2016

Sharjah-based VIP aviation specialist Gama Aviation has partnered with Go Aviation Middle East to access the company's suite of services, which range from light interior cleaning to complete paint and brightwork restoration and polishing.

One of the main benefits of the new partnership is that Gama Aviation can provide clients with the option of a 7-star valeting service in a single location, which according to Martin Ringrose Gama's Managuing Director, will optimise their aircraft asset values Ringrose said: “This agreement will enable our customers to combine the benefits of the convenience and low handling and parking charges at Sharjah with the 7-star cleaning capability of Go Aviation.”

Marc Lelah, vice president of Go Aviation Middle East added: “We are excited to be expanding to Sharjah in partnership with Gama Aviation. This is a natural progression in our growth plan to be the industry's leading aircraft appearance company in the region. We look forward to bringing our highly trained staff, renowned quality and latest cleaning technology and products to this customer base.”

[goliard] 05/2/2016 07:51

It will be interesting to see if the weaker pound, especially against the dollar, helps the bottom line.

[rivaldo] 05/2/2016 07:41

I found this about BlackRock Smaller Companies investing in GMAA recently:



"Gama Aviation is a global private aviation services company having more than 100 aircraft under management across 5 continents. Gama offers a comprehensive fleet management service to business jet owners managing a wide range of aspects of running an aircraft on behalf of the aircraft owner. Much of Gama’s revenues are essential, non-cyclical spend, charter being a small proportion of revenues. We were impressed with management, their track record so far, and their strategy."

[rivaldo] 04/2/2016 07:41

News of an excellent partnership which should bring in good business training pilots:



"Gama Aviation partners with CAE on training
Posted 3 February 2016 ·

Gama Aviation announced today that it has signed a partnership agreement with CAE, the world's second largest business aviation training organisation.

The agreement will address the new interpretation of the European Aviation Safety Agency (EASA) Part-FCL requirements regarding base training.

Gama Aviation has established its own Civil Aviation Authority (CAA) Approved Training Organisation (ATO) which meets the CAA requirement that as “the base training is part of the approved Type Rating course it must be completed under the control of an ATO”.

Gama Aviation launched this ATO to meet the needs of its own roster of more than 450 pilots. However, the company will also be extending the service to other operators.

etc"

[rivaldo] 29/1/2016 09:57

Excellent - Cantor have increased their forecasts after the trading update.

They're now:

last year : 23.88p EPS, 1.62p dividend
this year : 30.2p EPS, 1.97p dividend

That's an 8%+ increase in 2016 forecasts.

And a P/E of 8.8.

[rivaldo] 28/1/2016 11:52

Good update from AIR today, which is a minor positive for GMAA given GMAA's relatively small charter business. I still believe GMAA is the better (less risky) and cheaper (on fundamentals) business.

[rivaldo] 26/1/2016 23:08

Not a single share traded today despite the good news, though that could be due to the "interesting" markets at present. Still, you have to laugh :o))

At least the shares are held primarily institutionally rather than by Pi's, which from what I've observed over the years has to be a good thing.

A re-rating will come sooner rather than later imo.

Cantor's today reiterated their Buy and 400p target:

[rivaldo] 26/1/2016 07:34

Good news - trading is in line with expectations for 2015, so we should be seeing 22.56p EPS, with a 2.3p dividend:



With forecasts this year at 27.86p EPS, it's time for a re-rating here - even the broker's 400p target price isn't particularly demanding.

[igoe104] 22/1/2016 21:01

Private jets research from Gama Aviation


 Terry Spruce




New research from Gama Aviation reveals that the three main airports servicing the World Economic Forum (WEF) in Davos see a significant spike in private jet activity in January as delegates fly in.

ALSO READ: Lorissa Lippi joins Gama Aviation


In January 2015, there were around 896 business aviation flights at Zurich airport, and the corresponding figures for St. Gallen-Altenrhein and Samedan airports were 288 and 205 respectively.

The number of daily business aviation flights during January at these three airports was 14.7%, 55% and 144.4% higher than their respective averages for the year.

Zurich, which is around 154 kilometres away from Davos, handles the majority of private jet travel for Davos delegates, and this also leads to a surge in helicopter flights. Zurich airport tends to handle around five helicopter flights per day but this can increase tenfold during the busy period around Davos.

Duncan Daines, group chief marketing officer, Gama Aviation said: “Those flying via private jet to Davos will have needed to book slots for landing, take-off and parking at their chosen airports well in advance, because securing these closer to the start of the forum can be very difficult

[rivaldo] 21/1/2016 10:28

Charter is only a relatively small part of GMAA's business.

The core business is aircraft services, i.e maintenance, repairs, servicing, storage, fleet management, aviation management etc. This will continue whether passenger levels rise or fall.

On a single-digit P/E for this year based on almost 28p EPS - with a 2.8p divi - GMAA looks good value to me.

[gorilla36] 20/1/2016 16:31

igoe104 - It's risk off time, people only interested in holding cash. Oil maybe cheap, but if nobody wants to fly anywhere because there is no business to do............

[igoe104] 20/1/2016 10:41

Welcome to the crazy world of owning shares ?

Surely a cheap oil price and weaker sterling would be a massive benefit to a company like gama.

So why has the share price gone down continually for 5 months ?

[rivaldo] 19/1/2016 11:23

Great article - thx for the link hastings.

Hopefully this will see GMAA flying (ho ho) a little less under the radar.

[rivaldo] 13/1/2016 08:39

Comments about the acquisition here from the CMO - sounds like more acquisitions are on the way:

[igoe104] 10/1/2016 10:40

Latest forecasts from cantors are.

2016 27.86p EPS, 2.8p divi.

They were before the acquisition as well.

[igoe104] 10/1/2016 10:18

Adam, I`d imagine rivaldo using cantors figures, which is the latest update.

[adamb1978] 10/1/2016 10:03

Rivaldo
I sold out of these at the time of the merger with hangar8 but have kept them on the watch list. How do yo arrive at a single digit 2016 PE? The estimates which I see are just above 23p
Thanks
Adam