Net-Net
Net-net is a value investing technique developed by Benjamin Graham in which a company is valued based solely on its net current assets.

This company is tiny. As I write this, it has a market cap of $3.4 million, an operating business that has been interrupted by COVID-19, and $4 million cash in the bank.

Here are some things I like:

  • Virtually no liabilities (mostly provision for a special dividend they have announced)
  • A big portion of rent is calculated as a percentage of revenue (important during Corona Virus shut down as it is variable - low revenue should mean low rent).
  • Has been consistently profitable for the past 10 years
  • Being a small company, it should benefit from the Paycheck Protection Program with respect to holding its workforce together.
  • Should benefit from lower gas prices
  • 25 cents in special dividends are scheduled to be paid out this year

Here are some things of concern:

  • Majority of operations based in NYC
  • Dependent on tourist industry

Oh - you want to know the name of the company. Sorry I am just teasing you :-)

It is called Saker Aviation Services Inc. and it trades of the pink sheets with a ticker symbol of SKAS. Here is the P&L for the past 10 years:

Source: QuickFS.net

So what Saker do?

NYC Heliport

The Downtown Manhattan Heliport is one of the most advanced heliports in the industry and provides the ultimate in user comfort and convenience. Saker JRB has ramp parking that accommodates helicopters up to 50,000 pounds. Its terminal offers a VIP lounge, flight operations, and general administrative office space.

Saker JRB is located at the foot of Wall Street above the Battery on Pier 6, on the East River north of the Staten Island Ferry and south of the South Street Seaport. Only minutes by helicopter from Kennedy, Newark Liberty, LaGuardia, and Teterboro Airports, makes it convenient for busy executives, leisure travelers, and sightseers who want to experience the sweeping views of the New York and New Jersey skyline from high above.

Garden City Regional Airport in Kansas

Saker at GCK will help you spend more time in the sky, and less time on the ground. Located in southwest Kansas, Saker at GCK offers quick turn around solutions and maintenance repairs for a winde range of aircrafts from piston and turbo-props, to light and mid-size jets by IA and A&P-rated technicians.

Our FBO's provide Jet-A fuel and 100LL fuel handling services from commercial and military approved fuel farms. All line technicians are trained through the NATA Safety 1st Program and follow its strict safety standards.

Fuel

Saker Aviation is a Avfuel branded dealer. Avfuel Corporation is the nation's leading independent supplier of aviation fuels and services. Avfuel's product quality and dependability of service is vital to our customers' satisfaction. Saker Aviation participates in Avfuel Contract Fuel Programs.

Charter

Business or pleasure, a coast-to-coast one way or a short round trip, Saker's Charter Sales staff help you arrange your trip based on your personal preferences.

Saker can customize your aircraft management program to meet your unique objectives. Saker's goal is to help you get the most fulfillment out of your aircraft whether you prefer to charter it or not. With an experienced maintenance, concierge, and charter staff, Saker Aviation can assist with all of your aircraft management needs.

Enjoy !!!

Source: StockCharts.com
Source:ShortVolumes.com

Not Investment Advice

As always this is not investment advice. Do your own research. Consult you professional advisors.