Gama Aviation Share Discussion Threads

[samdb] 21/7/2017 08:58

More good news but stuck at 250. Likely a seller that needs clearing. Once they've gone this will rise fast.

[rivaldo] 21/7/2017 07:05

Yet more good news today. This share is just so obviously undervalued imho:



"Gama Aviation signs two new European fleet maintenance support agreements.

Oxford, 21st July 2017 - Gama Aviation Plc, (AIM:GMAA) the global business aviation services company, is pleased to announce the signature of two new maintenance support agreements with European fleet operators.

The deals cover ten aircraft in total, covering a range of services from inspections to AOG support for the two highly utilised fleets that include five Bombardier Globals, two Bombardier Challengers, two Hawkers and one Beech.

Scott Corbett, Director of Maintenance, UK said: "We are delighted to be able to support both operators through our European jet maintenance team based at Oxford Airport (UK). Our team has had notable success this year, by focusing on delivering high levels of service and support, which has translated into increased aircraft availability for our clients. Combine this with a strong global maintenance network, particularly in the US, and we have a very attractive proposition for fleet operators."

[rivaldo] 20/7/2017 10:03

Glawsiain, thx for the summary from ST's tip - I managed to obtain the whole thing as follows:

"Poised for take off

Aim-traded Gama Aviation (GMAA:250p), an operator of privately owned jet aircraft, has issued the robust trading statement I was expecting ahead of interim results due out on Thursday, 7 September 2017.

I outlined the investment case just over a fortnight ago (‘Four small-cap plays’, 3 Jul 2017) when I noted the unwarranted undervaluation relative to peers even though the company is now producing growth across all segments. Yesterday’s trading updates did nothing to dispel my enthusiasm as it revealed that Gama’s fast-growing US aircraft management business continues to benefit from strong organic growth as well as the Landmark fleet joint venture with BBA Aviation (BBA:307p); its European air operation has extricated itself from some underperforming legacy contracts and is benefiting from cost savings and margin improvements; and its European ground services operation is seeing higher maintenance activity on the back of contract wins announced earlier this year, and a ‘modest pick-up’ in discretionary aircraft improvements and modifications spend. This suggests that analyst expectations of a 10 per cent rise in EPS to 33 cents this year look well founded and that the shares are likely to maintain their ascent to narrow the 40 per cent ratings discount with peers as highlighted by analyst John Cummins at broking house WH Ireland.

Trading on just under 10 times EPS estimates of 26p using an average blended exchange rate of £1=US$1.28 for 2017, with net debt set to fall sharply this year, so offering scope for further earnings enhancing bolt-on acquisitions, and offering 20 per cent upside to my new target price range of 275p to 300p, I continue see decent upside here.

It’s of interest too that Gama’s share price is pressurising the 250p level that acted as a major support level until May last year when it gave way. A break-out above this key resistance level is worth noting as it narrows the odds significantly of a run up to my aforementioned target price range. I would also flag up that my fair valuation is well below the 370p target price of house broker WH Ireland and could have scope for upgrades if the current momentum in the business continues. Buy."

[twirl] 19/7/2017 19:02

The 25k at 250p declared after hours was a buy at 9 this morning and clearly not announced promptly.

[samdb] 19/7/2017 15:58

Better volume today. Think Simon's target is going to get hit pretty quickly.

[bone apart] 19/7/2017 15:16

bought some more 251.75- see if that 250p holds today, in which case 300p = 1st stop.

[twirl] 19/7/2017 15:06

thanks for the IC text glawsiain

[glawsiain] 19/7/2017 14:44

Here's the summary, Rivaldo:

"It’s of interest too that Gama’s share price is pressurising the 250p level that acted as a major support level until May last year when it gave way. A break-out above this key resistance level is worth noting as it narrows the odds significantly of a run up to my aforementioned target price range (275p to 300p). I would also flag up that my fair valuation is well below the 370p target price of house broker WH Ireland and could have scope for upgrades if the current momentum in the business continues"

[rivaldo] 19/7/2017 12:31

A sudden buying surge. I have a distinct feeling Simon Thompson at the IC has just tipped this :o))

Anyone got details please?

[rivaldo] 18/7/2017 23:07

GMAA are featured separately in tomorrow morning's market report in the Daily Mail, so might get a further boost:



"STOCK WATCH - GAMA AVIATION

Gama Aviation, which rents out and services private jets, saw shares rise yesterday after strong growth in its US air charter division.

The firm grew across all of its operations over the first half of the year due to strong demand, but in particular benefited from a contract with pay-as-you-fly plane charter club Wheels Up.

Boss Marwan Khalek said trading remains in line with full-year expectations.

Gama shares rose 1.2 per cent, or 3p, to 246.5p"

[samdb] 18/7/2017 10:26

Added here, can't believe my luck.

[rivaldo] 18/7/2017 10:12

WH Ireland today reiterate their Buy and 370p target - thats' 50% upside from here. And 370p would still only be a forward P/E of 13.4 for a world leader in its sector:

"On the back of the update, we leave our forecasts unchanged. The shares trade
on a FY 2017E PER of just 9.2x falling to 8.5x, which implies a significant 40%+
discount to our basket of peers. We believe that good momentum is now being
demonstrated, which combined with the outlook and valuation multiples currently
ascribed, leads us to reiterate our Buy recommendation and 370p price target."

[czar] 18/7/2017 08:02

They have demonstrated the market has got the valuation wrong, Gama should trade on mid teens multiple.

[igoe104] 18/7/2017 07:44

solid statement today, everything in line.

Single digit p/e, very cheap.

[rivaldo] 18/7/2017 07:44

Excellent, solid trading update today:



All positive, can't see a single negative. Trading is in line, net debt reduced, acquisitions being integrated.

The outlook is very strong. Expectations are for consensus 26.07p EPS - which means GMAA are on a ridiculous single-figure P/E:

"Marwan Khalek, Chief Executive Officer commented:

"This has been a busy and encouraging trading period for Gama Aviation and trading remains in line with our full year expectations. We have continued to target and deliver organic growth and operational efficiencies as well as improvements in our working capital and cash conversion. We are pleased with the progress that we are making on all fronts and together with the recent strengthening of the European management team we remain well placed to deliver on our strategic objectives."

[fizzypop] 18/7/2017 07:37

Divi payday today.

[rhomboid] 17/7/2017 13:29

I've had to pay 2.49 to buy another chunk so stock is not easily available but the price hasn't moved which seems odd, my trade is also delayed so I'm guessing the price may pop up into the close?

[rivaldo] 17/7/2017 12:07

Yep, per the AGM the trading update has to be tomorrow or Wednesday. My bet's on for tomorrow.

All the signs augur well for a rather positive update.

[igoe104] 17/7/2017 11:27

Nice trading statement should push these over 270, maybe tomorrow ?

[twirl] 17/7/2017 11:21

IG have 20000/10 @ 242.9/245

[twirl] 17/7/2017 10:17

100 passenger legs were flown. "

and 5 times as many fingers

[corrientes] 14/7/2017 17:51

My broker confirmed the difficulty buying in any volume. I had to pay the 3p above the offer, so that's my fourth and last purchase here.

Some have said that the share price has been held back because of difficulty in interpreting the figures, so you can't be too sure of the underlying net worth.

Hopefully this will be less of a problem when the results are announced, in which case, there should be a re rating to a more realistic level.

Fingers crossed.

[rhomboid] 14/7/2017 15:59

I picked up a handful more earlier at 2.44 as I'm confident the TU will see this move decisively higher given the news flow in the public domain

[rhomboid] 14/7/2017 13:59

Well I can sell 17500 at 239.65, so someone's mighty keen to buy without pushing the price up🤔