Capt. ~ AIRM

Did you notice AIRM is doing it’s “thing” again?
Like clockwork.

I’ve done well with short term trades the last couple of years.

JT

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Hi JT, do you mind elaborating a bit on that? Thanks! And your strategy to profit from it will b great.

Zangwei

I gave up on AIRM and I’m staying out. I haven’t been following the stock.

Denny Schlesinger

Hi JT, do you mind elaborating a bit on that?

I buy low and sell higher. Hehe.

  1. The company is very weather dependent, bad storms and such result in cancellations of scheduled or emergency flights. This causes their financial results to be unpredictable and lumpy.
    See their August report;
    http://finance.yahoo.com/news/air-methods-provides-august-tr…
    Fool coverage of August;
    http://www.fool.com/investing/general/2016/09/08/why-air-met…

  2. At the current prices, under $40, the company’s shares are a better
    buy for the company than buying anymore tuck in acquisitions.
    From April 1 thru August 3, 1.4M shares purchased at $36.14 per share.
    Since their buyback began, 2.1M shares at $36.905 per share.
    There is $122.5M in remaining buyback funds could purchase 3,356,164 @ $36.50.
    Average diluted share count on June 30 was 38,461,238 (actual count was 38,072,190)
    Repurchases in July & August were 718,000 shares as of August 4th.
    Company’s Q2 CC;
    Aaron D. Todd - Chief Executive Officer & Director

“Well, as you know, Bob, historically acquisitions within the air medical space have ranged with multiples between 8x and 10x. We’re trading between 6x and 7x right now. So, obviously, to the extent that expectations continue to be in those ranges, it would be very difficult for us to justify, shall we call them, tuck-in acquisitions in those multiple ranges when we can be buying back shares between 6x and 7x. And so you’re right that that would be something that would have to be reconciled for us to justify doing acquisitions of companies, especially if it’s within those multiple ranges, when we can be buying back our own shares at these multiples.” - This was said when the stock was $37-38.
http://seekingalpha.com/article/3996102-air-methods-airm-aar…

  1. Their service is somewhat of a monopoly as it would really be unprofitable for more than one to service an area. Being in the medical realm, their payments received are just as lumpy as hospitals and doctors. They lose money or break even on 7 out of 10 flights!

  2. Take over target possibility, analysts have several times asked, “Why don’t you just sell yourself?” My guess is that the C Suite loves their salaries and perks. :wink: Price, $50++ ??

  3. Over 11M short shares, why the large amount, you’ll have to ask the movers and shakers, some sort of arbitrage or …
    http://www.nasdaq.com/symbol/airm/short-interest
    And as a result of that institutions hold 120% of the float. Ying & Yang here. Hehe
    http://www.nasdaq.com/symbol/airm/institutional-holdings

  4. Miscellaneous, good cash flow, high depreciation on aircraft, yada yada.

Buy low when they get sacked, sell higher, don’t be greedy-you never know.
I got lucky and sold most of my options last Wednesday, bought em back yesterday.

JT

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