(Total Views: 372)
Posted On: 08/14/2017 9:50:10 AM
Post# of 41414
I knew you would.
A quick preface - I keep forgetting something that you've made a recurring point: USGL has no (significant) debt. I would imagine that the 9-12x multiple could perhaps be nearly doubled if USGL maintains little debt. Delta Airlines has a debt-to-equity ratio of 0.66 (as of 2016), which is high. As you've mentioned several times, that eats into Delta's valuation.
I completely understand the concept you've laid out. I've seen it with dozens of tickers (NTEK, ZVTK, ATNP, WLAN, POWN, etc.). You're right that traders nowadays have short memories, and they are forgiving when a company starts to do well. So we have the potential of being driven to several cents/share by enormous volume within a short period of time around the first revenue flight (very likely this year, given how quickly the company expects to acquire Songbird). It would be especially helpful - as you stated a few months ago - if Dan Buckley provided one of his pro formas using updated figures. It'd be especially helpful if we got numbers for charter flights on the 737 to the Caribbean. Then this banter would come to an end...for the most part...maybe...probably not...
I anticipate charter flights will probably become increasingly profitable because there may be a strong increase in demand soon. For example: https://skift.com/2017/04/19/the-airline-busi...r-flights/
Not that the NFL is the only institution that flys charter, but 737 flights to the Caribbean will probably generate decent returns after just a few months. But again, not the kind of returns that'll provide a billion-dollar market cap.
In any case, I very much hope Tony figures out how to get a huge investment in USGL very quickly to ramp up the fleet size. It'll likely make the company a good acquisition target, considering the plans for Stewart's quick expansion and renaming.
A quick preface - I keep forgetting something that you've made a recurring point: USGL has no (significant) debt. I would imagine that the 9-12x multiple could perhaps be nearly doubled if USGL maintains little debt. Delta Airlines has a debt-to-equity ratio of 0.66 (as of 2016), which is high. As you've mentioned several times, that eats into Delta's valuation.
I completely understand the concept you've laid out. I've seen it with dozens of tickers (NTEK, ZVTK, ATNP, WLAN, POWN, etc.). You're right that traders nowadays have short memories, and they are forgiving when a company starts to do well. So we have the potential of being driven to several cents/share by enormous volume within a short period of time around the first revenue flight (very likely this year, given how quickly the company expects to acquire Songbird). It would be especially helpful - as you stated a few months ago - if Dan Buckley provided one of his pro formas using updated figures. It'd be especially helpful if we got numbers for charter flights on the 737 to the Caribbean. Then this banter would come to an end...for the most part...maybe...probably not...
I anticipate charter flights will probably become increasingly profitable because there may be a strong increase in demand soon. For example: https://skift.com/2017/04/19/the-airline-busi...r-flights/
Not that the NFL is the only institution that flys charter, but 737 flights to the Caribbean will probably generate decent returns after just a few months. But again, not the kind of returns that'll provide a billion-dollar market cap.
In any case, I very much hope Tony figures out how to get a huge investment in USGL very quickly to ramp up the fleet size. It'll likely make the company a good acquisition target, considering the plans for Stewart's quick expansion and renaming.
(6)
(0)
