Never been a big fan of airlines and companies especially since 9/11 but bookings are now well up and a recovery as taken place in the industry, in fact more people have decided to go abroad this year than the last few years and the alternative 'stay at home holiday is on the wane' as witnessed by a poor trading statement from Holidaybreak were the camping division as taken a big hit in paticular.
Dart carry out business in both the holiday, short haul and commercial divisions.

The company is very cheap with a P/E of only just over 7 and a forward P/E of just over 6.

It also pays a nice divi, and is a small cap capitalised at around circa of 48 million.

The cheapness as not gone unoticed as you will see from this report.


The smart investors' favourite budget airline

Published:
By Graeme Davies, Companies Correspondent
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A host of shrewd investors are backing budget airline and distribution business Dart Group with one top smaller companies team buying at the start of this month.

Dart (DTG), which operates fledgling budget airline jet2.com and also offers air distribution services using the same planes, has become a tempting destination after a slump in its share price in the second half of last year.


The latest buyers are the smaller companies team at Aberforth who bought 315,000 shares at the beginning of this month to increase the holding of the Aberforth UK Smaller Companies unit trust Aberforth UK Smaller Companies to just under 1.2 million shares.


Dart's share price surged to 224p in the first half of last year before falling back to 124p towards the end of the year. It has been as high as 162p in 2004 but today is unchanged at 132.5p.


At 132.5p the company is valued at just 7.25 times its expected earnings per share of 18p for this year, falling to 6.6 times next year's earnings. It also offers a healthy 4.7% dividend yield which is covered almost three times.


This valuation has attracted the likes of Framlington's AA-rated Roger Whiteoak who holds shares in both the Framlington UK Smaller Companies fund Framlington UK Smaller Companies Acc and Throgmorton investment trust (THRG). New Star's AAA-rated Patrick Evershed also holds 500,000 shares in the Select Opportunities unit trust New Star Select Opportunities and Rathbone's Carl Stick has 250,000 shares in the Rathbone Special Situations unit trust Rathbone Special Situations.


In the first half of the year Dart's pre-tax profits rose by 31% to 7.1 million from a 16% rise in turnover. However this was helped by the seasonal performance of jet2.com which is expected to be profitable in the summer months and loss-making in the winter.


Jet2 operates from Leeds/Bradford and Belfast with flights to 13 destinations once a Belfast-Prague service is launched at the end of this month.


When Dart's fleet of aircraft is not being used to transport holidaymakers they are utilised for distribution services, ferrying cargo, fresh produce and flowers. The company is also involved in freight forwarding at Manchester, Newcastle, east Midlands and London Heathrow.

The company will report its full-year results in June.

Looks a very sound value share to me and I think its a short to medium term investment.

Please DYOR you are responsible for the timing of your buying and selling actions.

cheers GF

goldfinger
good comment gf, it seems we have a common view on the type of stock we invest in, good to bounce ideas around, be in touch soon.

regards HUSTLER

Closed long position down, made a very nice bagger plus profit on this. Looks fully valued at the moment, I may be wrong.

cheers GF

goldfinger
checked out the stats today on dart still looking good
forward per under 10 low for market and sector
growth still healthy over 20%
broker forcasts have been raised recently
and the share closed up again tody,hope there is more to come

regards HUSTLER.

Good luck to you Hustler,I could be wrong about this one and regret it, thats life.

cheers GF.

up 15 spots today to year high 308p bid
all stats still looking good will still hang in for more
hope it's right thing to do.


hustler

You jammy so and so, regretting getting out now, well done hustler.

cheers GF.

dart realy flying now
new high today 345p on the bid up 21 on day
the market is right behind it now
brokers recently lifted estimated ptp to march 05 by 3 million
with this momentum and spread of only 1.5% could move to 400p with ease
short term
per of around 12 is still low for sector could rise to 20 or more and still
not be demanding this potential could lift the price close to 600p
it also now ranks in the top 50 risers of the year confirming
the market is definitely behind it.


regards HUSTLER

Well its proved me wrong, just look at it go.

cheers GF.

It was always a good un GF
I got out far to early as well, just goes to show patience is a virtue
pick the very best and wait.
sorry to say i have limited patience as most.
However still dining out on the profit taken
and taking a profit isn't a sin.
All the best to those still in
HUSTLER

DTG looks like it might breakout to new highs. Pretty good results I thought and share split should improve rather poor liquidity. Any thoughts?

Dart Group sees H1 opg profit significantly below last year UPDATE
AFX


(Adds unit performances, share movement)

LONDON (Thomson Financial) - Aviation and distribution company Dart Group PLC said its first-half operating profit will be significantly below last year's levels due to lower margins, reflecting market conditions in both its businesses.

However, the company said its first-half turnover was well ahead of last year and in line with its expectations.

Dart Group still expects its outlook for the full-year to be approaching market forecasts.

The company's Fowler Welch-Coolchain unit had a satisfactory first half and is trading broadly in line with last year.

The Jet2.com unit has continued to build its network and customer base with significant expansion from each of its six bases during summer 2007, resulting in reduced margins as new routes are developed, the company added.

Dart Group said it expects Jet2.com's winter performance to improve from last year, reflecting lower growth in capacity relative to the previous winter season.

At 8:45 am, the shares were down at 76.525 pence from yesterday's close of 86.00 pence.

TFN.newsdesk@thomson.com

A bargain to be had here, Very solid management and a strong freight network, Night freight pays for the aircraft so jet 2can afford to run at a reduced load factor.
IMHO

is this worth buying as at all time low

Looks like another GF winner (not!)

yes, aint seen him for ages.....i remember his tips from years ago, most of them were poo

Thats rich coming from an MDX holder scotty

no-one picks winners every time......if u r, i'm surprised u r on this as u must be a multi billionaire by now at very least

It's the relentless hype I can't stand. Certain investors on here are renowned for glowingly reporting every twist and turn of an under-performing share - and doing it on several other forums at the same time - then exiting without explanation. I know it's every man (and woman) for themselves on here but, with such a suspect track record, folk like GF simply aren't worthy of being taken seriously.

yes paul....and cynic has a dreadful record in last year esp of slagging off most shares....but seems to buy crap ones like tan, lead etc....i think he pretends he sells them but i aint convinced.

yes gf has some stinkers....

Very good trading statement sent the price north on friday,would the same trend is likely to continue any one with experience in dtg.