AAVG NEWS - 118M O/S and 20M float confirmed with ungagged TA today...
AVSTAR Aviation Announces Acquisition Plans for 2010: Over 35 Opportunities for Expansion; Potential for Millions in Revenues Aug 4, 2010 8:56:00 AM
HOUSTON, TX -- (MARKET WIRE) -- 08/04/10 -- AVSTAR Aviation Group (PINKSHEETS: AAVG) is proud to update shareholders and potential investors alike about their recent acquisition success and the possibility of expanding their portfolio for 2010. AVSTAR Aviation is a full service aviation maintenance company, a non-scheduled air carrier, and a full service Fixed Base Operator (FBO). AVSTAR is focused on internal expansion of its existing assets along with acquiring assets such as small second tier fixed-base-operations nationwide in order to consolidate the company into a brand that travelers, independent airlines, and general aviation operators can turn to for the same excellent service and products no matter which location they visit.
The acquisition of Twin Air Calypso Limited, Inc. is the initial step in the expansion of AVSTAR into the airline sector of the aviation industry. The principals and management of Twin Air Calypso Limited, Inc. have provided service to the Bahamas from South Florida since 1954. AVSTAR has immediate plans to add service to and from several South Florida destination airports, including Miami and West Palm Beach. As mentioned in The Miami Herald on August 3, 2010: "As the gateway to Latin America and the Caribbean, Miami International Airport operates 87 scheduled and charter airlines and counted more than 347,000 flight operations last year -- thus generating the lion's share of the region's commercial aviation business. That volume acts as a magnet for companies offering goods and services to the sector."
As the article also mentions, the South Florida Aviation Sector generates around $29.1 billion. That's almost 25 percent of the county's total economy. AVSTAR will capitalize on the consistent demand for reliable travel to the Bahamas along with providing premier services and products for the general aviation community.
The AVSTAR team has completed a proprietary market analysis of the FBO market in the light jet segment and has determined that there are over 35 excellent opportunities for potential acquisitions based on traffic trends, geographic opportunities, competitive pricing models and on-field market dynamics. AVSTAR Aviation is currently in discussions with the owners of these targets and is actively raising equity capital that will enable them to be opportunistic and profitable in the aviation sector in 2010 and beyond. Expected annual revenues run between $7 and $9 million through this growth; with continued growth opportunities in 2011, AVSTAR is projecting that they could double those numbers.
About AVSTAR Aviation: AVSTAR Aviation Group, Inc. ("AVSTAR ") has a main focus on acquiring, consolidating, and growing businesses in the aviation industry. Also, the company is focusing on acquiring and/or developing companies that provide products and services for the general aviation service business. For more information please visit, www.avstarinc.com
Forward-Looking Statements: Certain statements contained in this release issued by SatMAX Corporation (the "Company") that are not historical facts are "forward-looking" statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, and because such statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements are statements regarding the intent, belief, or current expectations, estimates, or projections of the Company, its directors, or its officers about the Company and the industry in which it operates and are based on assumptions made by management. Although the Company believes that its expectations are based on reasonable assumptions, it can give no assurance that the anticipated results will occur. When issued in this report, the words "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," and similar expressions are generally intended to identify forward-looking statements.
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Ludlow Capital Issues Research Opinion on AvStar Aviation (AAVG) Last Updated: August 4th, 2010 - 6:00pm EST (NEW YORK)--Ludlow Capital has issued a research opinion on AvStar Aviation Group, Inc. (OTC:AAVG), a full service aviation maintenance company, non-scheduled air carrier, and a full service Fixed Base Operator, with a valuation target of around $0.03 to $0.04 per share.
AvStar Aviation is a full service aviation maintenance company, non-scheduled air carrier, and full service Fixed Base Operator (FBO). The Company plans to grow through the acquisition of small airline carriers and land based aviation maintenance companies in the South Florida market. www.avstargroup.com
For 2010, the Company is projecting annual revenues to be around $7 and $9 million through this growth strategy, with a projected goal of doubling those numbers to $14 to $18 million in 2011.
Twin Air Calypso Acquisition
On August 2, 2010, the Company announced they had acquired Twin Air Calypso Limited, Inc., a South Florida air carrier certified by both the United States and Bahamas government. This acquisition now positions AvStar as an operating air carrier service provider, with high traffic routes from South Florida to the Bahamas.
In addition to now providing air carrier services, the Company also formed Twin Air Calypso Services, Inc., a wholly-owned subsidiary of AvStar Aviation, to provide maintenance and ground support services including inspections and advanced communications testing for Twin Air Calypso Limited, Inc., and other commercial operators through their facilities at the Ft. Lauderdale/Hollywood Airport (HWO).
As of August 4, 2010, the Company had 118,799,542 shares issued and outstanding, with around 10 to 15 million of those shares in the public float. The transfer agent for the company is un-gagged and available to provide share count status through public disclosure.
Valuation and Price Target
AAVG currently has around 118 million shares outstanding, but for a more conservative valuation price formula we will round those shares up to 150 million to take into account some additional dilution for acquisitions and working capital.
The Company is projecting around $7 to $9 million in total revenues for 2010, with the Twin Air Calypso acquisition alone bringing in $3 million. Through this first acquisition, the Company now operates as a full service aviation maintenance company, non-scheduled air carrier, and a full service Fixed Base Operator in South Florida aviation market. Based on their tight share float, fully reporting status, and now growing market breath in the aviation industry, it would be justified to give an operating company like this a fair-market valuation of around $5 million, conservatively.
Based on our formula of 150 million shares outstanding this would equate to a valuation target of around $0.03 to $0.04 per share. Based on a coverage price of $0.045 a share, that would develop to a 500% to 700% return from this level.