Buy Advent Air* at 12.75p
Says Luke Heron of WatsHot.com
(Advent Air is one of three picks for 2007 on WatsHot.com, to read the others, click here)

Advent Air consists of two principal operations. Firstly is the provision of services on long term contracts to mining companies in Western Australia. This gives superb visibility of earnings. The second part of the operation is flying local services to and from Perth and Darwin to various smaller towns in west and North Australia and also up to Bali. The point about this operation is that these routes would not sustain intense competition - if you want to get to these places then you really have to use Skywest. On around 60% of these routes Skywest has a monopoly.

The company has already announced an expanded charter contract with Argyle Diamonds, a subsidiary of Rio Tinto, which will contribute an additional AUS$5 million in annual revenues to the group. A further air charter deal with BHP Billiton followed shortly afterwards, adding AUD $2m to revenues in a 2-year deal.

The value of investments can go down as well as up. Investing in equities can lose you part or all of your capital. Smaller company shares can be relatively illiquid and thus hard to trade. And that makes such investments more of a high risk than larger company shares. Watshot.com is owned by t1ps.com which is authorised and regulated by the FSA and can be contacted at 3rd Floor, Henry Thomas House, 5 - 11 Worship Street, London EC2A 2BH.

Skywest owns outright a fleet of 7 planes and has a further three operating under lease. Although it depreciates its planes over 6 years they have a useful life of 20-25 years. The company estimates that its fleet in operation today has another 12-15 years in it. Advent has cash of over 8 million pounds as of its last year end, worth 4p per share. The company should comfortably deliver earnings of 1.2p climbing to 1.5p for the year to 30th June 2008. I can see Advent being taken over at some point, but that is not a reason to buy. Advent pays a dividend, has contracts that underpin earnings and is growing at a good level. At 12.75p, "buy".

* Advent Air is a corporate client of Bishopsgate Communications and of GE&CR, which are owned by Rivington Street Holdings, the owner of this website.

Key Data:

Price: 12.5 - 13p
Market - AIM
EPIC - AAIR

Nice 1 000 000 buy today. Perhaps we are going to have take off.

LONDON (AFX) - Advent Air Ltd said passenger numbers for January increased 12.11 pct to 23,000 from the same period last year.

Skywest traffic, measured in revenue passenger kilometres, increased by 9.02 pct, while capacity, measured by available seat kilometres, increased by 1.23 pct over the same period.

Load factor increased by 3.84 pct to 53.75 pct compared to the previous year, added Advent.

Advent Air says Skywest to increase Perth-Kununurra service to five flights/wk
AFX


- Advent Air Ltd, which owns regional Australian carrier Skywest, said it is increasing its flights to the east Kimberly region from March 12, due to increased demand following Qantas Airways' withdrawal from the sector.

There will be five flights per week to Kununurra ex-Perth, the company said. The flights will operate via Argyle on Monday and Friday, and via Broome on Tuesday and Thursday, as well as a direct flight on Sunday.

22 February 2007

ADVENT AIR LIMITED
('Advent Air')


SCHEDULED CHARTER FOR PORTMAN IRON ORE LTD


The Board of Advent Air, which owns and operates Western Australian based
Skywest Airlines Pty Ltd ('Skywest'), is pleased to announce that Skywest has
today agreed with Portman Iron Ore Ltd to operate a scheduled air charter to the
Windarling mine.


The contract is for a five trip per week air service to provide air
transport for employees of the Portman Iron Ore Ltd mine at Windarling to
and from Perth in Western Australia;
The contract worth over AUD $2m per year has a term of up to 3 years; and
Contains protections to Skywest for rise and fall in fuel prices.


Advent Air Chairman, Jeff Chatfield said: 'A scheduled charter contract with a
major mining house such as Portman Iron Ore Ltd for a term of three years
provides Skywest with the opportunity to further utilize the existing fleet and
contemplate further expansion of scheduled charter services. Following recent
contract wins with BHP Billiton and Argyle Diamonds Limited, the Portman
contract will provide further welcome visibility to our revenue generation.
Skywest will continue to pursue scheduled charter contracts from the West
Australian resources sector.'



---ENDS---

LONDON (AFX) - Advent Air ticked up 1/2 to 13-1/4 pence after the company revealed a 245 pct leap in first-half pretax profits on the back of growing passenger numbers, and said it is well positioned with a growing number of long-term charter contracts which provides high levels of revenue visibility.

Again on the upside, SR Pharma moved ahead 2-1/2 to 77-1/2 in response to news that the US Food and Drug Administration has given the green light to an Investigational New Drug application for a second small interfering RNA (siRNA) therapeutic product based on its proprietary chemistry.

Approval has been given to a treatment for acute kidney injury, AKIi-5, which is being developed by Quark Biotech. The product was licensed to Quark Biotech by SR Pharma subsidiary Atugen and its structure and composition matter is protected by Atugen's patent portfolio.

Still with the gainers, Mission Marketing Group rose 4 to 136-1/2 following the company's acquisition of April-Six, a marketing agency specialising in the global IT sector, for up to 19 mln stg.

This is hardly moving despite good results...what a bore.

Profit - If I'm reading correctly - is around 1 million. And given a 70million mrkt cap I am not suprised that the shares have crawled a measly 3% higher hyleo.

mid price 13.5p today. zzzzz