janebolacha
08 Aug 2015
From "The Independent" today. "Avation, a long-time portfolio constituent, has attracted a "buy" recommendation from a US stockbroker. Not many small-cap London quoted companies can claim such a distinction, but then the aircraft leasing group has an international presence. Besides its British connection, it has close links with Australia, is based in Singapore and conducts its financial operations in US dollars. In addition its customers – and therefore its aircraft – have a worldwide dimension.The broker is RW Pressprich, an employee-owned New York-based firm. It has put a 12-month target price of 177p on Avation's shares and comments: "The stock trades at a discount to peers, despite strong margins in terms of revenues and returns on assets and equity, as well as solid growth prospects."The portfolio enlisted the shares four years ago at 83.5p; they are now around the 137p mark; they once nudged 180p."[link]
Alligator77
07 Aug 2015
Re: A320 for Air france It will be nice when the investing community recognises this and the price stops drifting. Down 1% on the Year to Date.
janebolacha
07 Aug 2015
A320 for Air france AVAP continues to upgrade its business, in terms of the quality of the lessees serviced and the type and spread of aircraft in its portfolio:[link] and long-term growth, imo.
Abcd4321
04 Aug 2015
CLA value increase With the recent rise in share price of capital lease aviation(cla), which is majority owned by avation, the value of avations stake in cla has risen by around £4M this year.
janebolacha
01 Aug 2015
Seeking Alpha: Likely takeover of Avolon [link]
mcescher
30 Jul 2015
Analysis report on Avation Avation is looking undervalued on this report [link]
Abcd4321
30 Jun 2015
windfall for Avation [link] today announced a 2p dividend.AVAP owns 96% of CLA, i've not worked it out exactly, but ball park figure, its a close to £2 Million payout for avap.I'm unsure of the tax treatment, so net it may be less.
janebolacha
29 Jun 2015
RNS: More business with Flybe, hint of more deals on the way One more plane leased to Flybe, all 2015 deliveries now leased but a hint of more deals to come![link]
Abcd4321
08 Jun 2015
interesting analysis looks for £4 long term a very informative article for both long term holders and new investors:[link]
janebolacha
29 May 2015
Re: .........and here it is The interesting thing about this initial US$100m bond facility is that proceeds are to be used for the 10%-15% of the purchase price of aircraft not covered by conventional long-term bank financing (this point was reportedly confirmed by FD Richard Wolanski in a call with Paul Scott and referred to in one of his Small Cap Value Reports). The 12 aircraft to be delivered before the end of 2016, ten ATR-72 and the two Airbus for Thomas Cook, would have a total purchase price of, I reckon, less than US$300m, meaning that perhaps less than US$45m of the bond issue would be used for existing orders. That would leave perhaps US$55m available immediately to cover the 10%-15% "deposits" on new orders besides the 12 aircraft referred to in the RNS and, if used in this way, that could mean that further aircraft of a value of perhaps US$350m could be financed immediately. If used in this way, AVAP could well have leased assets of close to US$1bn, about three times the current figure and with an obvious highly positive leveraging effect on profits. Should some of the money be used to sell older aircraft and to then refresh the fleet with new leases, then there could well also be additional one-off profits from the sale at above their depreciated book value of those retired older aircraft before the effect of new leases kicks in. Imo, this is very positive for the future of AVAP.All IMHO, DYOR.
catsick
29 May 2015
Re: .........and here it is Nice to see the directors are buying the bonds as well as some more shares too ... looks like it cost a fair bit to get the note issue launched but should be much cheaper to tap the remaining $400m once they spend the first lump
janebolacha
28 May 2015
.........and here it is [link]
janebolacha
27 May 2015
Exoect news soon! [link] finance director of Singapore based lessor Avation Richard Wolanski eats a sashimi lunch in a shophouse Japanese restaurant on Singapore’s Kampong Bahru Road, a few doors down from the company’s office.The Australian is flying back to his home town of Perth the next day for a well-deserved break following the successful establishment of Avation’s $500 million global medium term note programme, the first $100 million tranche of which was issued on May 20.Wolanski, who has been with Avation for over two years, is a "finance guy", though knows enough about aviation to be "dangerous". "On May 25, we’ll have $100 million in the bank – cash," Wolanski says."We are now a cash buyer for second hand aircraft, and we can deploy that $100 million within weeks."Avation’s notes have an aggregate principal amount of 7.5% due 2020 and are being issued"
janebolacha
07 May 2015
Re: Article in Daily Mail, "This is Mone... Claude, good morning.I think that there may still be a perception that AVAP is dependent on Virgin Australia, on SkyWest routes in WA serving the mining industry there and on Australia itself.. That certainly was the case when the company was set up, a situation perfectly normal since the driver behind the company is Jeff Chatfield, an Australian and the former chairman of SkyWest. Virgin Australia has been losing money, although their last results were much improved and, I suppose, the fall in the oil price will bring its benefits. VA's shareholders include, I believe, SIA and Etihad who, presumably, see VA as their foothold in Australia's regional air market so, for me, this concern increasingly seems exaggerated. I understand AVAP's intention is to diversify to other regions and evidence of this strategy being carried through is in the contracts with Air India Regional, Flybe and Thomas Cook, the last two together growing the lease book by about 40% . I understand that AVAP is now among the top forty aircraft leasing companies in the world so it's perhaps not so small, really. The aviation industry is forecast to grow strongly, the share of aircraft purchases through leasing is now in the 40%-50% region (up from around 20% at the turn of the century), the aircraft mainly used by AVAP, the ATR-72 from the Airbus-Alenia consortium, is by far the most popular regional route aircraft in the world, Asia-Pacific is the fastest-growing region, AVAP has a good position in options (about 35?) on the ATR-72 stretching two years forward, while the recent financing deals (the one for the pre-delivery finance on the two TCG aircraft, as well as the US$500m bond deal) show that AVAP is "growing up" and is now seen as very bankable for continued rapid growth. I'd say that the foundations for steady growth are all there. For me, there's one other factor which is the attractiveness of yields on aircraft leasing in an age of very low yields on other financial instruments, evidenced by leasing companies (admittedly, bigger than AVAP) being acquired, particularly in Asia-Pacific, for their operating yield as much as for anything else.There in a nutshell are the reasons I'm invested and why I'm prepared to take a chance on the market's perception being behind the curve.All IMHO, DYOR.
claude reins
06 May 2015
Re: Article in Daily Mail, "This is Money". Thanks for that. I am a holder and have been disappointed to see the share price fall off its highs. One point in the article that always interests me in this sort of commentary is :'It is interesting that even after the sharp rise in the share price in the past two years, the stock is valued at just 6-7 times earnings, where its rivals are valued at 12-15 times.Avation also trades at a discount to net asset value, where its American quoted peers are usually valued at closer to 1.5 times NAV. So, whichever way you cut it, there is potential for growth either organically, as Avation adds to its portfolio, or via a stock re-rating.'So it has the potential for a re-rating but on the other hand it is lowly related vs its competitors. What is it? Size? Over-dependency on one airline? - Virgin in Oz - though this seems to be reducing with the latest deals with T Cook and Flybe.I am interested in your thoughts, and of course anyone else's.
