San_Jaime
13 Feb 2019
What is going on? Sorry I posted a reply last August expecting the GMAA share price to recover. Badly wrong… Instead the price has crash due to various events over the last six months. Having to payback a few million of incorrect invoicing has killed any confidence in the management team as everyone wonders WTFIGO here… However now the price is below 70p I have taken a small punt again just like I did years ago when Hanger8 was 75p - I was not greedy and got out after doubling my money. Unfortunately I still hold a few at an average of around 200 so have created a new line in the portfolio for my punt at 69p to see how things go in the future… Will it be Bust or Boom from this price here, we shall see. but hoping to climb above the clouds eventually again… SJ
San_Jaime
23 Aug 2018
What is going on? I see that one of Netjets employees jumped ship this week. Sorry I just read a BBC article on one liner jokes… SJ
Biggesthousebubbleever
01 Aug 2018
What is going on? many thanks for the response San_Jamie! I will take a look at ADVFN as well
San_Jaime
01 Aug 2018
What is going on? BHBE - GMAA has always been fairly volatile. Often there is no apparent reason known why a big dip occurs. Fortunately recovery has always followed a drop like we’ve seen recently. As everyone (Gretel, me and a few others) who used to love this BB have now abandoned this downgraded and virtually unusable site I took a look at ADVFN where our friend gretel posts under the name rivaldo and nothing has been posted to comment on the sp price going under 200p recently. Go there to see rivaldo (gretel) keep us updated on contract wins, but not contract losses - and I do miss the big blue BUY flag we used to see here every post. Today on Yahoo Finance I saw an article 41 days old on GMAA’s debt status but it is non conclusive speculative wishy washy stuff which can be dismissed by us punters I think. (See "Is Gama Aviation Plc’s Balance Sheet a Threat to Its Future?’ by David Rizzo, Simply Wall St.) Wait a couple of months and your 240p level will be seen again. Meanwhile keep taking the tablets… SJ PS Am tempted to buy more GMAAÄ under 200p but need a few grand holiday money in August…
Biggesthousebubbleever
31 Jul 2018
What is going on? These shares seemed so undervalued when I bought them at around 240p a year ago. Since then events have only (so far as I can understand them) made the case for them stronger - and yet they are now much cheaper still. Is there something that we do not know about? Its valued as if there is some impending disaster.
sharegardener
20 Jun 2018
Court Case hearing next month ? As ii have removed the RNS alert indications in the virtual portfolios/watchlists I didnt see this till today! - ‘the Company has reached an agreement with the Dryden Parties (Dustin Dryden and associated entities) to settle the current legal proceedings’ ‘The terms of the agreement with the Dryden Parties supports the Board’s previously announced expectation that once all outstanding litigation is settled, the result will be a net cash inflow to the Company. Accordingly, other than legal costs which will be included in exceptional items, the terms of the settlement will have no impact upon the underlying results of the Company.’ They also mention a confidentiality/non-disclosure agreement. It will be interesting to see how much the legal costs are - but overall, it removes the litigation uncertainty. SP has bounced up but still under the 245p placing price for the 19.6M shares issued in Feb. It would be real faff to set up email or text alerts for RNS’s for every company I watch but may be the only way of getting the news in real time. SG
sharegardener
14 Jun 2018
Court Case hearing next month ? Court case ongoing London Circuit Commercial court (QBD) ROLLS BUILDING COURT 29 Before HIS HONOUR JUDGE WAKSMAN QC sitting as a Judge of the High Court Thursday 14 June 2018 At 10:30 AM (All Day) Part Heard Mercantile Trial LM-2016-000149 Gama Aviation (Engineering) Limited v. Volare Aviation Limited LM-2016-000179 Skye Holdings Limited and others v. Gama Aviation (Engineering) Limited and others www.justice.gov.uk/courts/court-lists/list-cause-rolls2/commercial-court
gretel
08 Jun 2018
IC's Simon Thompson is optimistic "Gama Aviation shares hit turbulence Simon ThompsonShareholders in Aim-traded Gama Aviation (GMAA:206p) suffered a bout of turbulence after the operator of privately owned jet aircraft reported a flat trading performance in the first five months of the 2018 financial year at its annual meeting.Analysts at broking house WH Ireland reined back their full-year pre-tax profit forecasts from $21.8m (£16.3m) to $19.9m, representing 16 per cent growth on last year but well behind the 27 per cent growth I had envisaged when I last suggested buying the shares at 257p (‘Small-cap earnings beats’, 21 Mar 2018) when Gama reported a near 25 per cent uplift in its 2017 underlying pre-tax profit to $17.1m.The reason for the downgrade is mainly due to a more challenging trading environment for Gama’s European ground services division. On the plus side, its US air operation continues to report robust trading, reaping the benefits of the fleet joint venture with BBA Aviation (BBA), and the US ground division continues to pull in new clients and produce strong organic revenue growth.Importantly, the company has the firepower to accelerate its plans in its higher growth Asian and the US operations, having raised £48m in a placing at 245p a share in February, a fundraising heavily backed by an affiliate of the mighty Hutchinson Whampoa (China), a Hong Kong-based conglomerate operating across a diverse number of sectors including the provision of aircraft maintenance and logistic services. Hutchinson now owns 21 per cent of Gama’s enlarged share capital of 63.5m shares. Around $19.8m (£14.2m) of the capital funded the acquisition of Hutchinson’s Hong Kong aviation interests, including a 20 per cent stake in China Aircraft Services, a company founded in 1995 and one of only three operators that provide maintenance, repair and overhaul aviation services at Hong Kong International Airport. I understand that the collaboration is "making good progress”.In the Middle East, Gama is using $5m of the fundraising as seed capital to develop a new $45m aviation centre at Sharjah International Airport. It makes sense to do so in light of capacity constraints at Dubai International Airport. Sharjah is well located to be used as a platform for expansion in the Middle East, and is a lower cost base, too. The aviation centre is on track to open in the fourth quarter of 2019.A further $10m from the fundraise is being used to expand hangar capacity and tooling and equipment at Gama’s fast-growing operations on the east and west coast of the US, where Gama operates from 14 locations and manages a fleet of 200 aircraft. Growth has been held back there by capacity constraints, an issue the new capital addresses, as well as providing cross-selling opportunities on the maintenance side of the business. The directors confirm that they “expect to add base maintenance capacity on both coasts in line with our 2018 strategic plan”.The point is that these investments and the ongoing robust organic growth in the US operations still support a step change of profitability in the 2019 financial year, a key reason behind my buy recommendation in March. Also, Gama has strengthened its management team since I published that article, having appointed a new finance director, a director of corporate development and chief operating officer for the US air division. It has also settled four out 10 of the litigation cases outstanding, and is “confident that the overall awards will result in a cash inflow to the company”.True, the placing will be dilutive on EPS in the short term as the new funds are deployed which is why WH Ireland is pencilling in a figure of 26.4¢ this year, down from 31.6¢ in 2017, even though pre-tax profit is set to rise by 16 per cent to $19.9m. However, the broker still expects earnings growth of 50 per cent in the 2019 financial year, pencilling in EPS of 39.8¢ based on pre-tax profits of $32.1m. On the basis of the current s
gretel
08 Jun 2018
Positive comment from Downing from today's Questor column in the Telegraph:[link] "Update: Gama Aviation Shares in Gama, the aviation services group, fell by 12.2pc on Tuesday after it said trading this year was “flat”. The shares are now 15.5pc below where we tipped them for this portfolio in January. Nick Hawthorn, of Downing, which owns about 6pc of Gama, said “we are not sellers, we think this is a great quality business with a lot of potential over the long term”. He said the update had been poorly worded and that a consequent reduction in one broker’s earnings expectations had hit the shares.“The US is trading very well, there are cost efficiencies ongoing [but] European maintenance contracts are expected to come through in the second half of the year,” Hawthorn said. “This [delay] led to the caution in the trading statement.“There is execution risk but we are comfortable with expectations for the full-year outcome. It is worth remembering that this puts the company on a multiple of less than 8 times 2019 earnings. It still has more than $25m (£18.6m) to deploy on earnings-accretive deals.”He added: “There is work to do on market perception and sentiment, which was acknowledged in the update. The company is fully funded to deliver on its strategy. The management team has been bolstered and contracts have been delayed but not lost during the period.” Hold."
San Jaime
06 Jun 2018
200p punt Took the opportunity to buy a few more today at under 200p for the medium term.Although trading has been flat, any time this dips below two quid I will continue to accumulate.Must admit though several times I've added recently at this sort of price I never thought they would return back down to this flight level.Have never listened to Broker forcasts here, which have been misleading to say the least....
gretel
05 Jun 2018
New analyst forecasts: P/E only 10 WH Ireland have revised their forecasts as follows:this year : 26.4c EPS, or 19.8p EPSnext year : 39.8c EPS, or 29.8p EPSThey also see a 360p fair value price target.They conclude:"Fundamentally, we believe that Gama is positioned well to grow in highly fragmented markets, whilst the valuation remains undemanding."
gretel
05 Jun 2018
Flat trading update Flat year-on-year trading, with the USA performing strongly, Europe variable and the Middle East weak. A mixed and disappointing update.Nevertheless, the share price is already on such a low rating that from here there remains substantial upside and only minimal downside imho.The litigation side continues to be positive, with GMAA still expecting net cash inflows and a majority already settled and inactive with presumably immaterial results.The outlook for Europe is improving, with "high quality contract wins for base maintenance and design the full effect of which will be seen in the second half of the year".The forward outlook similarly suggests that positive vibes can be inferred:"I am pleased with the progress that we are making in implementing our 2018 strategic plan which is tailored to ensure that, through a mix of organic investments and acquisitions, each division in the Group receives the necessary support to allow it to address its specific growth opportunities. With the strengthened leadership team now established, we are even better equipped to deliver on our strategic objectives."
gretel
01 Jun 2018
New revenue stream due to regulation This looks like a large slug of work coming GMAA's way due to the need for regulatory compliance in installing Automatic Dependant Surveillance Broadcast technology:[link] Dealers And Brokers Warn Of ADS-B LogjamMay 30, 2018Gama Aviation is the latest company to add its voice to the growing chorus of concern that the business-aviation community is flirting with disaster if it continues to ignore the implications of the U.S.’s 2020 deadline for ADS-B conversion/installation.Duncan Daines, the chief marketing officer for Gama’s Oxford Airport-based London ground MRO unit, warns that operators face increased costs or having their jets grounded if they do not get the work scheduled soon. Experts note there are more aircraft remaining to be outfitted than there are MRO slots available before the deadline.Failure to comply will result in jets being unable to fly in most classes of North American airspace, limiting their utility so extensively it will effectively mean they are grounded.“We don’t think operators are taking the 2020 ADS-B mandate as seriously they should,” Daines says. “Exactly the same is happening in the U.S: it’s delay, delay, delay.“This is a mandate that we do not believe is going to change. Operators need to take action now.”Clearly, for a company such as Gama, which will fit Honeywell-supplied equipment, there is an obvious business interest in heightening a perceived sense of urgency.“It does, as an MRO, provide us with a potentially useful market,” Daines says. Yet Daines’s warning cannot be dismissed as an attempt to drum up business through instilling fear or panic. It is, he argues, the product of how many jets the company knows need to have the work done, how few have so far been booked in for the necessary upgrade, and how long conversion takes to carry out.“There are too many aircraft, not enough maintenance slots, not enough engineers, and not enough parts. It just puts pressure on the system, and when you put pressure on the system, prices go up.etc"
gretel
31 May 2018
RNS: £50m contract extension.... Terrific news - which just adds to GMAA's already high future earnings visibility:[link] Million Air Ambulance Contract ExtensionGama Aviation Plc, one of the world's largest business aviation services providers is pleased to announce the extension of its seven-year Scottish Ambulance Service contract. The contract extension commences in June 2020 for a further period of three years and is expected to be worth in the region of £50 million over that period.Marwan Khalek, Group Chief Executive said:"I am delighted that we have been awarded this contract extension. Our work with the Scottish Ambulance Service over nearly three decades demonstrates the effectiveness of our business model, supplying both Air and Ground support to deliver mission-critical services where high availability and rapid response times are vital. This is testament to the dedication and expertise of our people, resulting in an excellent track record for delivery that has created an enduring relationship with accompanying contracted revenue streams. The forward visibility these contracts afford allows us to further enhance our support to the Service through the provision of state-of-the-art facilities in Glasgow and Aberdeen."etc"
gretel
30 May 2018
New CFO announced Encouraging to see another brick in the wall just announced, with the appointment of a strong-looking new CFO with extensive experience in much larger businesses than GMAA:[link]
