Pacmans post22 Aug 2016 13:57
And More:-
And here’s the thing: 16 months ago, when MayAir was first admitted to AIM, the company raised £16.2 million at 130 pence per share. What’s changed since then? Answer… The company has grown its revenues and profits threefold!
However, today, with revenues of $63.6 million, EBITDA of $9.05 million, and profit after tax of $6.30 million, the company’s market cap is a paltry £31.5m!
Yes, feel free to bark the necessary expletives.
Absolutely preposterous!
It’s clear, the current share price of 77p singularly fails to recognise the company’s intrinsic value and staggering growth prospects. House broker Cantor Fitzgerald has a target price of 238p within the next 6 months.
OUR VIEW:
Against the backdrop of the recently-announced share buyback programme, where the company, through Cantor, will repurchase 10% of MayAir stock right up to and including 137 pence per share – a screaming buying opportunity for any investor with an ounce of wealth-creating sense in them, and with 82.84% of the company’s 42,475,000 shares in private hands, we believe a scramble for MayAir shares is already in progress.
To this end, we expect the company’s objective (to achieve a sensible base valuation for its business – 137p) to be met within the coming weeks.