Gama Aviation Share Discussion Threads

[czar] 19/1/2017 12:24

I'm getting more excited about the prospects here. Looking into the future this business will grow eps and something like 40p is within their reach short term. Combine this with a re-rating to a market multiple of 15x and you get a price target of £6. It sounds fanciful but I believe that is the area we are looking at by end of 2018. After all you have to look into the future when investing.

[someuwin] 19/1/2017 12:05

Excellent news!

[igoe104] 19/1/2017 11:39

I EXPECT the market to adjust to these now, and a share price around £3 by the end of 2017.

even that would be cheap.

[czar] 19/1/2017 11:33

God knows how many jets there are in China but this is a great start at taking a slice of that enormous market. Still only on a pe 5.8x which looks absurd, surely something around 15x to 17x is warranted here.

[rivaldo] 19/1/2017 11:10

Thx for that paleje - look forward to ST's update.

GMAA is just hugely undervalued imho. And today brings more good news:



"Gama Aviation Hutchison commences long-term business aviation maintenance collaboration with China Aircraft Services Limited.

Hong Kong, 19th January 2017. Gama Aviation Plc's (AIM:GMAA), joint venture1 with the CK Hutchison Group is pleased to announce it has commenced a long-term business jet maintenance co-operation agreement with China Aircraft Services Limited ("CASL"), the Hong Kong International Airport based maintenance provider.

The collaboration combines Gama Aviation's business jet maintenance expertise, knowhow and network with CASL's substantial infrastructure and established maintenance base at Hong Kong International Airport. Under the collaboration agreement, Gama Aviation Hutchison as the General Sales Agent (GSA) will work together with CASL to provide a full range of business jet maintenance services including line, base maintenance and AOG support. These services will be progressively introduced during the course of 2017 to support resident and transitory aircraft at the airport.

Marwan Khalek, Group Chief Executive, Gama Aviation Plc commented: "We are delighted to partner with CASL on this exciting opportunity. This collaboration delivers a strong and long-term maintenance proposition at this strategically important aviation hub. As with those made earlier in the month, this announcement is another tangible example of our ability to create sustainable platforms for organic growth worldwide."

[czar] 19/1/2017 11:09

Another great strategic deal with growing annuity type income with a real blue chip client. This stock should be trading on a high teens multiple.

[paleje] 16/1/2017 14:13

Agreed someuwin it's a good place to be. With ref to ST, who czar mentioned, he stated in his column today that he will be updating GMAA amongst others soon, I can only see it as being positive for the share price as their situation is better now than when he last covered them in Oct and he was bullish enough then:-

"Finally, I am carrying out extensive equity research on my 2017 Bargain Shares Portfolio at the moment ahead of its publication on Friday 3 February. I will publish updates on a number of other companies in due course that have also reported trading updates recently including: high street retailer Moss Bros (MOSB); privately owned aircraft operatorGama Aviation (GMAA); stockbroker and fund manager Walker Crips(WCW); pawnbroker H&T (HAT); retail software company K3 Business Technology (KBT); and Mind + Machines (MMX), a service provider in the domain name industry and one focused on the new top-level domain space."

[someuwin] 16/1/2017 14:03

Aviation sector as a whole is growing fast. And will continue to do so for the foreseeable future imo.

GMAA in the perfect position to keep on growing revenues.

Aircraft maintenance, management, charter, leasing, training etc. etc.

[czar] 16/1/2017 12:12

rivaldo we are still awaiting Jefferies research, its a bit overdue now as they are the house broker but I'm pretty confident it will be both informative and bullish. That should introduce a new group of investors. I'm also interested in what Simon Thompson at Investor Chronicle will have to say when he next updates on Gama.

[rivaldo] 16/1/2017 11:03

Breaking upwards again now.

[twirl] 13/1/2017 09:01

Thats better Cantor - NY resolution to stop dawdling.

IG 5/1 166/169.8

[czar] 13/1/2017 07:48

Its about time Jefferies published their research, they are house broker. The pe of 5.4x is just a total mispricing of this business and it will correct over time.

[someuwin] 13/1/2017 07:29

Cantor Fitzgerald reiterates 'BUY' and increases target price from 200p to 230p.

[paleje] 12/1/2017 16:44

Astonishing isn't it, confirmed FY16 is in line, outlook for 2017 is good...

..and a PE of 5.4

[someuwin] 12/1/2017 14:20

Let these few sellers out then we'll be racing up again - imo.

[twirl] 10/1/2017 11:29

online limits indicate oversupply 0.5/10k 169/171

[someuwin] 10/1/2017 08:57

Chart would suggest a swift move back up to the 275p level could be on the cards.

Seller finished and yesterday's upbeat trading update back up that suggestion.

[rivaldo] 10/1/2017 08:33

Good to see a move up already today after some early buying.

Agreed czar. At the least, the current year P/E of 5.7 based on 30.05p EPS consensus is just far too low for a global leader in its sector.

[czar] 09/1/2017 16:30

I can see the WH Ireland target of 340p being hit this year, the business looks set for further deals and surprises to the upside. Even without that a pe of 10x is cheap.

[rivaldo] 09/1/2017 13:43

More from Cantor re today's upgrade:

Http ://www.proactiveinvestors.co.uk/companies/news/171332/gama-aviation-upgraded-after-bullish-trading-update-171332.html

"Gama Aviation upgraded after bullish trading update
12:04 09 Jan 2017

Cantor upgraded to ‘buy’ from ‘hold’ as Gama said revenue growth was more than 10% higher

Gama Aviation PLC (LON:GMAA) took off on an upgrade from Cantor Fitzgerald as the aircraft maintenance and management group reported good revenue growth in the year just ended.

Cantor upgraded to ‘buy’ from ‘hold’ as Gama said revenue growth was more than 10% higher year on year on a constant currency basis, driven by a 12% increase in aircraft under management and an improving European business.

Growth was primarily organic and weighted towards the second half with the US Air business seeing revenue growth of over 20% and US ground up over 10% with three new maintenance bases added.

The bullish update follows on from last week’s joint venture agreement in the US with BBA Aviation (LON:BBA).

That deal will involve 200 aircraft and create a market leading platform for maintenance and aircraft management services, according to Cantor.

On a 2017 earnings multiple of just 5, the shares trade at a significant discount to its business aviation peers, said the broker which has a 200p price target."

[napoleon 14th] 09/1/2017 12:19

200p just the next level on chart IMO. If GMAA carry on like this a P/E of c.10 means 300p.
Just hold on, IMO.

[czar] 09/1/2017 10:56

WH Ireland price target still 340p pe falling to 5.3x fails to reflect true value of this business.

[rivaldo] 09/1/2017 10:29

Cheers paleje. WH Ireland's price target is 340p, which seems more realistic imo (haven't seen any reaction from them yet today).

I suspect that Cantor will move their price target back up post-results in March (once their clients are already in of course).

[paleje] 09/1/2017 10:25

Fwiw, Cantor upgraded this morning from hold to buy, didn't move the 200p target though which seems on the low side.

[czar] 09/1/2017 09:06

PI's have been spooked by the sell off in the shares and keep looking for negatives here. Well there aren't any, the sell off was down to a fund just off loading a position for some arbitrary reason. It happens, quite often recently. Stride is another stock I hold sold down to silly levels despite the company delivering in spades.