Gama Aviation Share Discussion Threads

[rivaldo] 09/1/2017 08:56

Also worth noting that:

(1) the improvement in Europe was achieved despite a $1m transactional foreign exchange cost, and
(2) the "material foreign exchange credit" will make the headline numbers look even better

Today's year end was easily the most informative ever from this company. The prelims in March will fill in the gaps, and we know that the Balance Sheet is sound from the interims.

[wjccghcc] 09/1/2017 08:39

It would have been nice to see some cash figures. They've been bleeding cash for the last 2 periods despite their EBITDA figures.

[rivaldo] 09/1/2017 08:26

Good to see a keen 5k buy at 168.04p, above the 168p published offer price.

[someuwin] 09/1/2017 08:04

Excellent updates.

[czar] 09/1/2017 07:32

This business is growing nicely

US
The combination of our aircraft management business with BBA Aviation provides a strong platform for the development of both our US Air and Ground activities and will enable us to build on the strong performances achieved in the current year.
EUROPE
We are also pleased to have announced two significant contract awards following competitive tenders. The first is a new three year contract for our Europe Ground business to maintain the fixed wing fleet of the National Police Air Service and the second is a five year contract renewal to manage and pilot a UK aerial survey platform.The European market is expected to remain challenging during 2017 with little overall growth. However, with new contract wins, more tenders in process and a healthy pipeline, our European business is well-positioned and well-equipped to gain market share and deliver organic revenue growth. These factors, combined with ongoing proactive management of the cost base, should deliver a margin improvement during 2017.
MIDDLE EAST
Preparations for the development of our new 100,000 square foot business aviation facility at Sharjah Airport are progressing well. The facility will provide much needed hangar and maintenance infrastructure to the region and attract increased fixed-base operator traffic, line and base maintenance.
HONG KONG
However, there are some encouraging signs of renewed activity in the market and this is reflected in an improving pipeline.Plans to launch our line maintenance operations in the region remain on track and we expect to be generating revenues from ground operations during the course of 2017.

[rivaldo] 09/1/2017 07:29

Two excellent RNS's this morning. GMAA are crazily cheap given we now know they'll achieve around 27p historic EPS, with almost 29p EPS forecast this year:



Plus we have two long-term contract wins worth over £10M:



GMAA is a world leader in its sector. It has a sound Balance Sheet. The dominant American market should continue to thrive under Trump. It really should be trading at nearer 300p than the current 150p or so.

[wooluf] 09/1/2017 07:14

The European market is expected to remain challenging during 2017 with little overall growth.

[czar] 09/1/2017 07:14

Wow, I can't believe these results are actually in line with market expectations, that means Gama trade on 5.7x historic earnings and the business is growing with a great deal of potential. How and why did they ever get sold down to this level? This stock must double from here.

[twirl] 06/1/2017 09:39

IG 25k/10k @ 151/158

[colonel a] 06/1/2017 09:11

Can I be cynical and hope that said buyer is au fait with the contents of Monday's announcement ?

[rivaldo] 06/1/2017 09:04

Looks like a keen buyer out there - 45,000 shares bought in 5k and 10k blocks so far today at around or at the full offer price.

[twirl] 04/1/2017 11:00

thanks for the Times link paleje - should put us on radar. Looks like sell BBA/buy GMAA.

[paleje] 04/1/2017 09:46

:) fair point Colonel but I only pasted the conclusion, their words could be better.

[colonel a] 04/1/2017 09:10

I don't subscribe to IC but if they compare the two share prices while ignoring the fact that BBA has a market cap over 40 times that of GMAA, then I don't think I'm missing out.

[paleje] 04/1/2017 08:56

Are we definitely getting a trading update on Monday?

IC shifted their view on BBA from sell to hold:-

IC VIEW:
The deal might pit the two businesses involved as equals but the shares of Gama rose much more on the deal than BBA's did. BBA was pushed to a pre-tax loss by exceptional costs at the half year but with the price-to-earnings ratio below the five-year average we move to hold at 285p.

[rivaldo] 03/1/2017 15:47

Perhaps another angle on this is that with much closer ties now, GMAA could become an acquisition target at some point for BBA if all goes well with the JV. Post-acquisition I assume some arrangement could be made to continue to satisfy US ownership restrictions.

[leonasdad] 03/1/2017 14:26

that must be a revelation by gabriel the winged angel pretending to be an aeroplane manager

[paleje] 03/1/2017 14:23

Interestingly IC mentioned the deal but from their sell stance for BBA...they now have that under review:-

Sell recommendation BBA Aviation (BBA) has formed a joint venture with peer Gama Aviation (GMAA) which will pool their US-based aircraft management and charter businesses, in the process creating the US’s biggest such business with 200 planes under management. The two companies will hold around 24.5 per cent each of the combined business with management owning the balance. Our recommendation on BBA is under review.

[twirl] 03/1/2017 13:10

thanks for your post rivaldo

the text you extracted about the competition shows GMAA in a good light.

A big earner will be the increased work for ground sevices

Does this also remove a competitor? - not sure of US market

Also trading statement earlier than last year(26th) which is sometimes a good sign.

[czar] 03/1/2017 12:07

IF the trading statement on Monday is anywhere near the current forecasts I would expect Cantors to move their price target much higher. 200p is a very soft target IMHO.

[rivaldo] 03/1/2017 11:15

Cheers napoleon.

Great to see WH Ireland with a 340p target (thx czar). Cantor have retained their 200p target, but even that gives 36% upside from here.

[napoleon 14th] 03/1/2017 10:49

Nice one! this is one of my picks for 2017!
Thanks for that analysis, Rivaldo....

There's an II somewhere with egg all over his face.
Scrambling out like that cost him a lot of wonga.
SP manipulation not obvious IMO, just a daft II.

[rivaldo] 03/1/2017 08:47

...or as we surmised on the thread, simply a bounce from a silly low price caused by an indiscriminate seller getting the position off the books who simply finished selling.

[colonel a] 03/1/2017 08:41

Whilst very welcome, to my eye the recovery in late Dec is now suggestive of insider dealing.