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Strategies & Market Trends : STOCKS WITH ATTITUDE TEAM - FA/TA AND EVERYTHING ELSE

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To: James Strauss who wrote (805)12/25/1997 8:51:00 PM
From: Sergio H  Read Replies (2) of 2377
 
Jim, I've been studying AIRM for a few hours. I will take a look at your selections right now. Carole also mentioned one of your picks, ldaka.

AIRM

NEGATIVES!!!!
* insider selling
Roy Lee Morgan has been selling shares. He is the biggest shareholder at about 90k or 1%, but he sold 9k during October. A VP has also been selling, 12k during Sept.
* accident liability
too early to tell if the company has any negligence or some other problem resulting from recent accident.

Everything else says BUY IT !!!!!!

Let's look at the two divisions:

the air services division:

* contracts
they renewed all existing hospital contracts for terms of at least 1 year.
signed a new customer to a ten year deal in the summer. Just announced a new customer
last week. ( revs fron these contracts are 70% monthly fees and are adjusted for CPI and the cost of AIRM's insurance premiums,therefore earnings can be projected fairly easily.)

* consolidation of the industry and consolidation/closing of rural
hospitals are both favorable factors.

* growth of Brazilian franchise started in 96 is resulting in increased royalty payments and additional revs.

* acquisition of Mercy Air in summer is accreditive to earnings

the Products division

* the air force contract is starting to derive greater profits as the
upfront costs are out of the way.

* Boeing partnership for Canadian govt. contract has potential for
income not yet realized.

GENERAL
improved balance sheet, particularly cash flow and profit margin.
company is trading at lower range of historical p.e.
vectorvest has price value of 6.40. H.D. Brous has target of $6.
company has indicated plans to hire a PR/IR firm any day now.
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