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Air T Inc. Message Board

  • tesiman tesiman Feb 9, 2007 10:01 AM Flag

    The Irony

    The lower it goes the more vulnerable it becomes as a takeover target since management does not own a controlling interest.

    This may eventually work out in our favor since it would be hard to fathom that a suitor would be able to cherry pick this company for under $12 share (i.e a measely $32M).

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    • You are right that rates have been stagnant- thus, my assumption that Air T should have the ability to negotiate higher rates. FedEx has increased its rates. Why not Air T?
      ++++++++++++++++++
      LOL! We'll simply have to agree to disagree on AIRT ability to negotiate higher rates with FedEx dry lease contract. We both see the same facts and come up with different conclusions. ...kinda like...Is the glass half-full or half-empty?

      Good luck in your investment!

    • I feel the same Tiesman
      I think this com0pany will get bought out.
      It;s funny when you read all the messages here.
      Nobody has said anything about the 9million in back log that will be added onto 4th quarter.
      I stand firm like you with Airt.
      Bottom line they made money thats what counts.

      • 2 Replies to golongnow
      • golongnow and tiesman,
        why do you guys keep bringing up that AIRT will be bought out? Is it based upon any solid reasoning? Personally, I don't see any other company out there that would benefit opportunistically or strategically from a takeover of AIRT. Just be cause AIRT shareprice is low does not mean AIRT is a good takeover canidate.

        After coming across AIRT "dry lease" contracts with FEDX, the overnight air cargo services doesn't appear that lucrative. As per the annual report, FEDX can break the contract with only a 30day notice.

        AIRT additional $75mill revenue would only marginally increase the sales/revenue in any type of merger. Sadly, AIRT business segments aren't that unique and without any wide moat proprietary technology. AIRT 5.21% operating margin is hardly amazing. Acquiring AIRT realatively small market share would not be of significance to most air delivery and freight services.

        For the reasons above, I don't believe AIRT would be a good takeover company. Additionally, after looking at a variety of competitors in the industry; while most smaller competitors would benefit from merging, their fundamentals look bad and are in no shape to takeover AIRT, regardless if it was friendly or hostile. The larger competitors would not have good reasons to acquire AIRT, because AIRT marketshare is relatively small.

        P.S.

      • We are still in the game. I never buy on margin and am willing to wait for the turnaround. It will happen.

    • bought 5k shares in the 8's......i think we have excellent management here....with csa, mac , global, they going to provide a good service.

    • maybe closer to 24-26m for the company
      which would be closer to $9 per share

      re-iterate buy in 6's maybe low 7's

      • 1 Reply to deadmoney321
      • Good luck at getting AIRT at 6's and 7's! I was lucky at $7.88 and they ran out at the price.

        Personally, I believe in 6 months, AIRT will easily return 30% with several good news reporting.

        AIRT is a very defensive holding and being a micro-cap can easily out-perform the general market.

        Also, if past history can predict the future, we should follow Walter Clark, the CEO. He is very astute with buying and selling company shares. In the past, as he has done recently, he buys on the cyclical dips and sells high. He became an instant millionaire the last go around, as he unloaded shares to the shorts as they needed to cover their position.


        AIRT contracts with FEDX limits AIRT upside potential, but, also at the same time limit/support AIRT expenses on the downside.

        If AIRT can ever get another customer, it would be pure gravy and go directly to the bottom line.


        Good luck in your investments, even if it might be a short position. It's a matter of time that you will need to cover and share your profit with me.

        . ,

 
AIRT
16.5301Nov 25 3:58 PMEST

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