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Avation present at our next Leeds seminar on the 14th November, more details here: hTTps://www.sharesoc.org/events/sharesoc-growth-company-seminar-leeds-14-november-2017/
I've sold some hefty profits in another Slater held share (HCM) and looking to reinvest the profit in another share. I've been going over the 2017 report and I'm pretty confident this is a company worth the time of day. It would appear that the company is trading at 30% below its book value. Hard to pass up this opportunity. Profit margins are also really good. Just want to have a look who their customers or lessees are. Make sure they aren't going the way of one of "our" recent customers and that if we're heavily concentrated on one particular airline, they are financially sound. Other than that, nice to meet you all. And if you have any information that I should be aware of, would be nice. I like this share because it isn't a "herd" share.
And there you have it. Nice increase in the divi too!
Shares firming...Sometime soon the plc should update the market on what it is doing with the $31m it got for the 6 ATRs. Got plenty of options for more new ones but bigger picture needs highlighting. Nav 250p ish?
Just been tipped by Jim Mellon at Master Investor as one of his long ideas for the coming year- https://twitter.com/masterinvestor/status/845616897051840513
Mr. Market waking up at last - Perhaps !
Simon Thomson 31.10.16 .."Shares in Aim-traded aircraft leasing company Avation (AVAP:168p) took off at the end of last week after the board received an unsolicited approach to buy its wholly owned portfolio of ATR72 turboprop aircraft. The company owns 24 of these ATR72 planes, of which two are subject to finance leases, and the expression of interest relates to the 22 planes owned outright, which are funded by debt facilities. ..... According to analyst John Cummins at house broker WH Ireland, the current fleet value of these ATR72 planes is $385m (£315m) post depreciation based on an original acquisition cost of $440m. He notes that "assuming the debt against these aircraft is paid back over a 25-year period, and on average just under 80 per cent of the purchase price is funded through debt, this would imply a conservative net asset value (NAV) for these 22 aircraft of around $85m, or 118p a share." This means that the 16 other planes in Avation's portfolio - five Fokker 100s, nine Airbus A321s and A320s, and the two ATR72s subject to finance leases - have a net asset value of $88.6m, or 124p a share. That's worth noting because executive chairman Jeff Chatfield says that any sale will have to be priced at a premium to book value, and understandably so. Rival Avolon was acquired at close to 1.6 times book value earlier this year by Bohai Leasing, a Chinese public company listed on the Shenzhen Stock Exchange. Subsequent to that deal completing, Avolon has since purchased a portfolio of aircraft at a 20 per cent premium to book value. The point being that, with Avation's shares trading 30 per cent below book value, there is obvious potential for significant shareholder value to be created through the sale of the company's ATR72 portfolio at a premium to book value, and then recycling this capital into new aircraft purchases. True, there is no guarantee a deal will be done, but with Avation's shares priced on only six times likely EPS of 27.5p in the 12 months to the end of June 2017, offering a 1.8 per cent prospective dividend yield and rated well below book value, investment upside from any disposal is in the price for free. So, having recommended buying Avation's shares at 147p at the time of the full-year results ('In the ascent', 12 Sep 2016), I feel that my fair value estimate of 220p is looking conservative and I have raised it to a target range between 225p and 240p. At the upper end the shares would be rated on less than nine times earnings, and 10 per cent below the end of June 2017 NAV estimates of 266p a share, excluding any bid premium on a sale of the ATR portfolio. Strong buy"
Ooh, lift off suddenly...no idea why, though had expected more upward movement last week.
Mcap at 54%of NAV implied by these results if my maths is right. Was interested to compare GMAA whose Mcap is at 132% of NAV. They seem to be running on fumes of cash compared to AVAP and their profit performance has been more volatile. This seems to be a screaming bargain of an undervalued share unless I'm missing something? (Am encouraged after doing calcs to see IC has identified them as undervalued too, but I don't subscribe, so don't know on what basis they conclude this)
Sell immediately on good news it seems, which pushes the price back down. Lot of price spiking across the board. GMAA another case in point (+20% on contract news for all of about 10 minutes a few days back).
profit after tax up 54% YoY to $7.4 million; Operating cash flows up 65% to $31.1 million;
Up less than 2% - ?????????????
What a stonking set of results and with a bidding war to come. Watch this share price. Enjoy😊
Could be related to GAMA merger - Perhaps markets suspects further consolidation?
Share price is showing signs of life. Has someone got the whisper on the sale of the turboprops?
With the sale of the 5 fockers and the possible sale of the turbo prop fleet of 20 planes we would be left with just 11 planes, 9 airbus and two turboprops. This would bring the discount to nav into sharp focus and should push up the share price. Any other views out there?
I had hoped and indeed expected that we might have some news on this by now. Six weeks or more since the RNS is into Fergie time!
to say I told you so? Roll on 2.20
Another profitable disposal per today's RNS. Add in the likely sale of the ATR turboprop fleet and the IC tip should be even stronger. Two pounds by Christmas?
Should read 2.00 to 2.20 pounds!
This latest RNS could push valuations to a far more realistic level similar to its peers. In my book £2 to £2.20 is a distinct possibility . Is the predator BOC Aviation who raised a billion dollars earlier this year?! Lets hope so!
Brakes applied. Why?
Any one know the holdings and free float ? . Looked under AIM rule 26 but could only find a e-mail address ? Thanks