We are adding Air Trans Group (OOTC:AITG) to our Tier One Pink Screen.  Although AITG has not posted strong growth over the last several years, there may be some reasons to track developments of this company.  We are coding AITG a GeoBargain on the Radar at $0.08.

  • While we still need to perform thorough analysis of company operations, it appears that management is in the final stages of implementing a plan to enable the company to grow again.
  • It looks like the company has expanded its routes , increased its potential customer base, and has upgraded its airline fleet.
  • Apparently,  the recent government sequestration had impeded near term growth plans.
  • The company is EBITDA positive and has been since 2008.
  • The company has also been profitable on adjusted net income basis since the first quarter 2012.
  • At $0.08, it looks like shares are trading at an EV/EBITDA of 2.5 and a PE of .15.

Notable Quote From Management:

“We also are beginning to see positive shifts in various air cargo networks that are creating new opportunities for us to deploy our aircraft assets and expertise. In addition to these new potential opportunities, with the regulatory and transition delays largely behind us, improving free cash flow due to minimal capital expenditure commitments, and expected positive pension developments, we will have the flexibility to opportunistically deploy capital at optimal, risk-adjusted returns heading into 2014.”

We will look to build a position in AITG once we verify its capital structure.

Caveats:

  • Extremely high leverage, though we need to confirm its capital structure.