Gama Aviation Share Discussion Threads

[czar] 06/3/2017 09:47

This is the trading update early Jan

"Good performance in line with expectations

In advance of its full year results, Gama Aviation Plc ("Gama Aviation"), the global business aviation services provider, today provides an update on trading for the financial year ended 31 December 2016.

Gama Aviation will release its audited results for its financial year ended 31 December 2016 on 27 March 2017.

Highlights

Ø Strong revenue growth of over 10% year on year

Ø Earnings in line with market expectations

Ø Improving European business performance

Ø 12% increase in the number of aircraft under management"

But since that Gama have struck 3 great deals:

1/ Gama Aviation wins, two long-term special mission contracts.

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

3/ WIJET signs European maintenance agreement with Gama Aviation.

[rivaldo] 06/3/2017 09:11

Positive start to the week - as paleje says, results are in 3 weeks' time. Given the nicely in line trading update, together with a P/E of only 6.8, we can hopefully expect a continued push back upwards.

[paleje] 01/3/2017 14:44

Yep Rivaldo, IC noted the positives in its morning summaries, BBA's share price has recovered since then:-

BBA Aviation’s (BBA) shares dropped close to 5 per cent following its latest full year results, after exceptional items led to an £82.2m loss before tax. Its core flight support division outpaced its market however, with organic growth in revenues of 5 per cent. The recent acquisition of Landmark Aviation was also reportedly completed ahead of schedule and with “cost synergies higher than originally anticipated”.

Results later this month might re-energise the share price

[rivaldo] 01/3/2017 12:45

For the record, Jefferies' new forecasts are:

last year : 32.9c EPS
this year : 36.6c EPS

At 202.5p, that's a current year P/E of just 6.8 based on 29.6p EPS at a $1.235 exchange rate.

At 330p, Jefferies' target price, that would still be a P/E of only 11.1.

[rivaldo] 01/3/2017 07:33

Positive stuff from BBA's results this morning.

Their Signature Flight Support division performed strongly and had good results, and they also had this to say about the new JV with GMAA:

"In December we completed the transaction to combine the aircraft management and charter business, acquired through the acquisition of Landmark Aviation, with Gama Aviation's US aircraft management business. The combined business, which is named Gama Aviation Signature Aircraft Management, is one of the largest aircraft management and charter businesses in the world with around 200 airplanes under management. It also offers our Signature business the opportunity to provide support in terms of its global FBO network, hangar space, line maintenance and engine support capability."

The outlook for Signature also augurs well for the JV:

"We completed the significant acquisition of Landmark Aviation, which materially expanded the Signature network, and made further investment in Ontic's IP protected licence portfolio. We executed the successful integration of 62 new FBOs into the Signature FBO network, delivering greater cost synergies more rapidly than originally anticipated.....

.....As a result Signature comprises the majority of the Group and has a global network of over 200 FBOs that can meet more of the needs of our customers at most of the locations they want to fly to. This enhances and extends our opportunity for continued market outperformance."

[czar] 28/2/2017 14:22

rivaldo there is no doubt this share is mispriced at the moment but i was expecting selling over the next few weeks before a significant leg higher post results. We know results won't disappoint and my guess is with all the developments over the last 3 months the outlook will be strong.

[rivaldo] 28/2/2017 13:35

Consensus forecasts are historic 24.61p EPS and 27.1p EPS for this year:

2016 2017
Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)
W H Ireland 10-02-17 BUY 11.96 24.51 2.99 13.71 27.25 2.99
Cantor Fitzgerald 13-01-17 BUY 10.65 24.73 2.60 12.37 26.94 2.70

That's a current year P/E of just 7.1.

It's easy to see at least 50% upside from here to a P/E of say 10.6.

[czar] 28/2/2017 08:33

No buying here for a while, waiting for the next uptick to top up probably next month after finals on 27th March or more positive newsflow.

[larva] 26/2/2017 19:35

incredible it held on to gains

[igoe104] 26/2/2017 18:27

Jefferies Group LLC began coverage on shares of Gama Aviation PLC (LON:GMAA) in a research report issued to clients and investors on Monday. The brokerage set a “buy” rating and a GBX 330 ($4.12) price target on the stock. Jefferies Group LLC’s price objective points to a potential upside of 58.27% from the stock’s current price

[twirl] 21/2/2017 08:07

IG 200/204.5 50k/1.6k

[twirl] 21/2/2017 07:36

100k trade reported yesterday at 207. On lse its shown as 16th.

[igoe104] 17/2/2017 10:31

Nice write up here, it looks like gama has very good future.

Fasten your seatbelts
Flight support play BBA Aviation (LSE: BBA) isn’t expected to suffer any such earnings turbulence in the near term or beyond, however, as a growing US economy supports steady growth in the business jet market.
And BBA has engaged in shrewd M&A activity in recent times, like the 2016 acquisition of Landmark to bolster its flight support operations. More recently it took the decision to merge its aircraft management and charter businesses with those of Gama Aviation, to boost its hold on the growing North American market.
The City expects these factors to drive earnings at BBA Aviation 17% higher in 2017, underpinning dividend growth from an expected 11.9 US cents last year to 12.7 cents. And the payout is expected to grow to 14.8 cents next year, supported by an anticipated 11% bottom-line bounce.
The yield at BBA Aviation consequently leaps from 3.6% for 2017 to a chunky 4.2% for 2018. And I expect dividends to keep improving as rising jet activity blasts revenues higher

[twirl] 16/2/2017 08:43

IG online same as last post

[twirl] 15/2/2017 16:20

Still 50k @ 201.5 and 35k/3k 203/210

[twirl] 15/2/2017 08:37

Normal service resumed apparantly with IG online 50k/3.6k 201.5/209

[czar] 06/2/2017 07:59

At last, I look forward to reading it, it should be the most informed. This will bring a new group of shareholders to Gama.

[rivaldo] 06/2/2017 07:49

Jefferies today initiates coverage and says Buy with a 330p price target.....

[twirl] 03/2/2017 11:23

IG online 50k/1k 206.5/211.5

[shakeypremis] 02/2/2017 15:14

Thanks Twirl

[twirl] 02/2/2017 15:08

IG online 50k/4.7k 206.5/213 good demand

[rivaldo] 02/2/2017 09:14

WH Ireland yesterday reiterated their forecasts:

last year - 24.51p EPS, 2.99p divi
this year - 27.25p EPS, 2.99p divi

[czar] 01/2/2017 12:52

Oh and still the House broker has not issued their research.

[czar] 01/2/2017 12:52

The difficult thing with an investment here is when to sell, the price has moved up from the lows in December but that valuation was just ridiculous, today its very cheap and with all the positive news flow there will be upgrades coming through this year. I'm going to try and be patient and give this a couple of years to see where it can go. Short term the 240p price set this week will be crossed very quick;y imho.