This is one of those shares that when I reflect on it makes me feel like a fraud benefiting from tips, luck and a rising market! I ask why am I in this stock? I am not sure I can answer this one.
I can’t remember why I bought AVAP. I first bought in June 2015 at 155.7p and sold out 2 months later at a small loss because I did not understand why had bought the stock. I then bought back in this year at 139p in September, and topped up on 16th November and 18th November at 190p and 191p respectively. It is now 4.2% of portfolio as I write, so not large for me and definitely not conviction size.
I am now sitting on a 14% gain after two months and I am tempted to exit on the basis:
- that I don’t know why I bought the stock
- The rise is probably only due to the possible sale of its 24 ATR72 aircraft
- Stockrank is only 52
- It is misunderstood by the market which leads to
- The low PE of sub 8
- Sub .8 PEG
- It trades well below book
- Has $48m of cash on the books
- has a history of a small but steadily rising divis
- If the ATR sale comes off there is likely to be a nice special divi
- Jim Mellon (not my favourite person BTW) tipped it right at the end of his MI presentation.