Gama Aviation Share Discussion Threads

[rivaldo] 14/7/2017 13:13

I note an £8k buy just now at 245p - a full 3p above the published 242p offer price.

[twirl] 14/7/2017 13:10

thanks rivaldo

IG 12,500/10 @ 238.5/242. So seem to be seeking supply.

[rivaldo] 14/7/2017 12:28

Twirl, yep, GMAA provide the pilots for Wheels Up too....

[twirl] 14/7/2017 11:27

Thanks Rivaldo - do we pilot these as well as maintaining and garaging?

"more than 100 passenger legs were flown" - does this mean 50 passengers. lol

[igoe104] 14/7/2017 11:25

Cheers Rivaldo,

All looks good for the pending trading update, present and forward.

also looking like wheels up is going to expand rapidly.

[fizzypop] 13/7/2017 12:12

H1 TS scheduled by Wed 19 July.

[rivaldo] 13/7/2017 12:11

The AGM update at the end of May said there would be a further trading update "by the 19th July":



A Monday morning update is almost always good news - let's hope for this Monday the 17th.

Remember that the AGM update was very positive:

"Marwan Khalek, Chief Executive Officer commented:

We continue to build on the significant progress made last year and trading remains in line with our full year expectations. Our management team has been strengthened with the recent key and high quality appointments across many of our divisions. We are focused on building on the improvements in operating margins, working capital and cash conversion that we delivered in 2016 and the Group remains well positioned to deliver on its strategic objectives."

[mfhmfh] 13/7/2017 11:19

no trading update today. there was one this time last year.

[rivaldo] 13/7/2017 08:14

Looks like a £31,000 buy at 248p this morning has got things going nicely.

Yet still on a single-figure P/E for this year!

Loads of upside imho.

[rivaldo] 11/7/2017 08:51

Major expansion news for Wheels Up with the purchase of 17 new King Air aircraft.

This has to be great news for GMAA as, to quote the article, "Though Wheels Up owns the aircraft, it does not operate them preferring to delegate that task to Gama Aviation".

The article also notes that "As part of its growth plans, Wheels Up will also add an unspecified number of Cessna Citation Xs to its portfolio".

So even more work coming GMAA's way from Cessna purchases as well as the King Air aircraft:

[czar] 05/7/2017 12:44

been away for a while, at last we are breaking that 240p barrier!

[rivaldo] 05/7/2017 11:56

New recent highs now after a succession of buys in the last half hour.

[twirl] 05/7/2017 11:16

Thanks for the IC article rivaldo

IG 6k/0.5k 238.4/240

[rivaldo] 04/7/2017 09:49

Here's Simon Thompson's full tip (thanks mate) - he's increased his target price to a still conservative (imo) 275p-300p:

"Gama shares in the ascent

Aim-traded shares in Gama Aviation (GMAA:240p), an operator of privately owned jet aircraft, hit my 250p target price last week, having risen by 15 per cent since my full-year results call with finance director Kevin Godley and chief executive Marwan Khalek ('Five small-cap buys', 29 Mar 2017). I previously advised buying at the start of the year at 175p ('In the ascent', 23 Jan 2017), although this has proved to be a volatile holding and the price is now only back above the 225p level at which I initiated coverage, albeit it did subsequently hit a high of 380p in late 2014 ('Ready for take-off', 12 May 2014).

That said, this year's share price recovery looks fully warranted. The company's robust pre-close trading update ahead of half-year results on Wednesday 19 July is highly supportive of adjusted EPS, rising by 10 per cent to 33¢ as forecast by analyst John Cummins at brokerage WH Ireland.

Gama's fast-growing US aircraft management business continues to generate strong organic growth and is also benefiting from the Landmark fleet joint venture with BBA Aviation (BBA). Importantly, "right sizing" the company's European air business and exiting from underperforming contracts is paying off and this unit is on target to deliver modest growth. Modest growth is materialising from the European ground services business, too, underpinned by "increased maintenance activity from contract wins announced at the start of the year, as well as the return of some discretionary aircraft improvements and modifications spend".

Importantly, the directors "are focused on building on the improvements in operating margins, working capital and cash conversion that we delivered in 2016". That's important for the company to achieve its target of halving net debt to a range $9m to $10m by the December year-end. It's also supportive of the progressive dividend policy, and further bolt-on acquisitions. Last year's acquisitions of FlyerTech and Aviation Beauport are on track to achieve their budgeted growth after posting strong first-quarter results, and "are working on enhancing cross-selling opportunities and new joint sales initiatives within Gama's European air and ground services divisions".

Trading on 9.5 times forward earnings, representing a 40 per cent ratings discount to peers, and with another upbeat outlook statement likely later this month, I am upgrading my target price to a range between 275p and 300p to reflect the operational improvements being made and de-risking of earnings estimates. Buy."

[rivaldo] 03/7/2017 13:12

Cheers x54v - perhaps you could post the text after a suitable interval?

[x54v] 03/7/2017 12:19

Just been tipped by Simon Thompson, hence the sudden flurry of buying.

[fizzypop] 30/6/2017 11:56

Ex-div yesterday.

[rivaldo] 30/6/2017 10:45

Crazy - down 6p on a mere 5k shares traded.

Meanwhile, GMAA have been tipped today here - and imo GMAA should trade at least equal to and potentially at a premium to Air Partner since AIR is much more exposed to highly cyclical charter trades:



"40% discount

As well as Pets at Home, Gama Aviation(LSE: GMAA) also looks to me to be an undervalued stock. After several years of lacklustre performance, Gama's fortunes picked up last year as the company's growth effort started to pay off.

Pre-tax profit hits £19.3m for 2016, up 180% year-on-year and significantly above the pre-tax profit of £520,000 reported for 2012. Between 2012 and 2016, revenue expanded from £17m to £203m. Analysts expect Gama's new-found profitability to continue for the next few years with earnings per share of 25.9p pencilled-in for 2017 and 28.6p for 2018. Based on these figures, the shares currently trade at a forward P/E of 9.3, falling to 8.4 for 2018.

Compared to sector peers such as Air Partner, these multiples appeared to undervalue the business severely. Indeed, shares in Air Partner currently trade at a forward P/E of 15.1, and while Air Partner's growth is faster, there's no clear reason why Gama should trade at a near-40% discount to its peer.

A revaluation to a more appropriate multiple of around 12 times forward earnings would send shares in Gama up to 311p, 27% above current levels. It may take time for the market to realise the potential here, but luckily investors will be paid to wait. Shares in Gama currently support a dividend yield of 1.1% and the payout is covered 10 times by earnings per share, leaving plenty of room for payout growth. "

[rivaldo] 26/6/2017 08:32

Breaking upwards now, with buying at 250p.

[twirl] 23/6/2017 09:41

IG 10k/2.5k @ 240/244

[rivaldo] 22/6/2017 12:59

New recent highs now (just!). Good to see a decent move up on small volumes, which again suggests not much stock around.

[fizzypop] 22/6/2017 12:20

Up 6.6% to 248p at noon today.

[twirl] 14/6/2017 10:31

IG 236/7 25k/1.5k