Seeking Alpha

Ron Sommer's  Instablog

Ron Sommer
Send Message
Ron Sommer was a chief financial officer at an institution of higher education in New York City. He has 35 years of financial management experience in the public, private and not-for-profit sectors. Sommer has also been a private investor for more than 30 years. He uses a ruled-based... More
My company:
Measured Approach
My blog:
Measured Approach
  • Air T, Inc. 1 comment
    Oct 12, 2009 4:42 PM | about stocks: AIRT

    Air T, Inc. (AIRT) is a micro cap company providing air courier and air freight services on a contract basis to express delivery services throughout the United States and the Caribbean. For FYE 03/31/2009, the company reported net income of $4.4 million on $90.7 million sales. The recent closing price on this company was $11.14.

    For a detailed analysis of AIR T, follow the link http://measuredapproach.wordpress.com.

    Company Profile (From Reuters):

    “Air T, Inc., incorporated in 1980, operates wholly owned subsidiaries in three industry segments: the overnight air cargo segment, the ground equipment sales segment and the ground support services segment. The overnight air cargo segment comprises Mountain Air Cargo, Inc. (NYSE:MAC) and CSA Air, Inc. (NYSE:CSA) subsidiaries, operates in the air express delivery services industry. The ground equipment sales segment comprises its Global Ground Support, LLC (GGS) subsidiary, manufactures and provides mobile deicers and other specialized equipment products to passenger and cargo airlines, airports, the military and industrial customers. The ground support services segment, comprises its Global Aviation Services, LLC (NYSE:GAS) subsidiary, provides ground support equipment maintenance and facilities maintenance services to domestic airlines and aviation service providers. During the fiscal year ended March 31, 2009 (fiscal 2009), the Company’s air cargo segment accounted for approximately 47% of the Company’s consolidated revenues, the ground equipment sales segment accounted for 44% of consolidated revenues and the ground support services segment accounted for 9% of consolidated revenues. The Company’s air cargo services are provided primarily to one customer, FedEx Corporation (FedEx)."

    Revenues have increased steadily from $70.0 million to $90.7 million during the five year period under consideration. The twelve month period ending June 2009 shows a slight drop in sales. During the five year period, the gross profit percentage has remained remarkably stable, ranging from 16.9% to 21.0%. Even during the period ending June 2009, gross margins held at 20.1%. Operating expenses have been approximately 89.5% of revenues during the five year period. 

    Value Conclusion

    Based on my analysis of the common stock of AIR T, Inc. the fair market value of the common stock is $22.00.

    Disclosure: Author is long AIRT







    Stocks: AIRT
Back To Ron Sommer's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (1)
Track new comments
  • Hester
    , contributor
    Comments (549) | Send Message
     
    You could be right and certainly airt has a lot of room to grow. However, there are a couple of serious risks you get when you buy airt. Know that when you buy airt stock, you are also speculating that fed-ex will continue to be stable and do well. Fed-ex has been a customer of airt since the 80's, but fed-ex could end airt if they wanted to, almost over night. Without fed-ex as a customer airt would have to find another large customer akin to fed-ex, and quickly. If not they would either go bankrupt or be worth much less. Just know that when you buy airt.
    23 Oct 2009, 11:13 AM Reply Like
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Most Commented
  1. Air T, Inc. (1 Comment)
Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.