gretel
20 Jul 2017
GMAA tipped by Simon Thompson in the IC online edition:"Poised for take offAim-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."
gretel
19 Jul 2017
Featured in Daily Mail GMAA are featured separately in this morning's market report in the Daily Mail, so might get a further boost:[link] WATCH - GAMA AVIATIONGama 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"
gretel
18 Jul 2017
WH Ireland have 370p price target 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."
gretel
18 Jul 2017
Very good trading update today Excellent, solid trading update:[link] 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."
gretel
17 Jul 2017
Re: "Record-breaking" number of flights Confirmation via RNS:[link] Aviation & Wheels Up fly 100,000th segmentPress releaseGama Aviation & Wheels Up fly 100,000th segment and have record Fourth of July holiday weekendShelton, Connecticut, July 17, 2017 - Gama Aviation LLC, the exclusive operator of the Wheels Up King Air 350i and Citation Excel / XLS program, is pleased to announce major milestones for its Wheels Up flight operations. On Wednesday July, 5th, the 100,000th flight segment in the Wheels Up program was flown by N861UP, a Beechcraft King Air 350i flying from Jacksonville FL to Nashville TN. In quick succession from June 29th through July 2nd, the Fourth of July holiday weekend, Gama Aviation completed over 400 member flights for Wheels Up, including record-breaking numbers on Saturday, July 1st when more than 100 passenger legs were flown. "Etc
gretel
14 Jul 2017
"Record-breaking" number of flights for Wheels Up last month:[link] Aviation & Wheels Up hit 100,000 flight sectorsShelton, Connecticut, 13th July 2017 – Gama Aviation LLC, is pleased to announce a major milestone in Wheels Up flight history with the occasion of its 100,000th flight sector. The sector was flown by N861UP, a King Air 350 flying from Jacksonville FL to Nashville TN on Wednesday 5th July.This was not the only accomplishment in the recent weeks. In quick succession from June 29th through July 2nd, Gama Aviation completed over 400 flights for Wheels Up, including record-breaking numbers on Saturday, July 1st when more than 100 passenger legs were flown. The week also saw Wheels Up securing $90 million in debt financing from KKR to purchase its next 17 King Air 350 aircraft.Thomas Connelly, CEO & President, Gama Aviation LLC said: “I’m extremely proud of reaching this milestone. Four years ago, Wheels Up was an idea, a PowerPoint presentation and a spreadsheet, now its flight operations have the same scale as a regional airline, it is fast approaching 6,000 flight sectors per month with the continual drive to democratise private aviation. That said we will not rest on our laurels. Wheels Up members, Kenny and the Wheels Up management team have high expectations of us. We will continue to work safely, tirelessly and diligently to support the business as it continues to grow; meeting and surpassing Wheels Up’s expectations every step of the way.”Kenny Dichter, CEO & Founder, Wheels Up said: “We originally selected Gama Aviation ahead of other high quality operators, based on their vast experience and pervasive safety culture. They have since proven a crucial ingredient to the development of our brand, scaling as we scale; being flexible and responsive to our members’ needs and offering cast iron reliability. This underpins the promises we have made to our members, enabling us to focus on them and our vision, rather than operational detail.”"
gretel
13 Jul 2017
New recent highs now 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.
gretel
11 Jul 2017
Great news from partner Wheels Up 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:[link]
gretel
04 Jul 2017
Re: Tipped today by Simon Thompson Here's the full tip - he's increased his target price to a still conservative (imo) 275p-300p:"Gama shares in the ascentAim-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."
gretel
03 Jul 2017
Tipped today by Simon Thompson of the IC, hence the sudden surge today:[link]
gretel
30 Jun 2017
Tipped today GMAA have been tipped 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:[link] 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. "
sharegardener
26 Jun 2017
2nd hand jets now cheap! www.ft.com/content/23a59714-5813-11e7-80b6-9bfa4c1f83d2''The resale price of a Bombardier Global XRS, which sold for $50m, has dropped from $31.3m to $20.4m''''the private jet charter industry could benefit, as more owners decide to tender their aircraft for charter rather than put them up for sale. Charter flights account for almost 60 per cent of private jet flights across Europe''GAMA should also benefit from the ongoing maintenance/airworthiness needs of all these older planes.SG
gretel
26 Jun 2017
New recent highs now Breaking upwards, with buying at 250p.
gretel
08 Jun 2017
RNS : Hargreave Hale buying more Good news, as Giles Hargreave/Hargreave Hale have bought another 2.3m shares. They now own 4.3m shares, or 9.8%:[link]
gretel
07 Jun 2017
Breaking upwards today with buying at 232p....yet still only on a current year P/E of 8.8 based on consensus 26.1p EPS.
