Tuesday, November 26, 2024

Tuesday's Watchlist Topper: Low Float NYSE American Profile (SOAR) Is Backed By 5 Key Potential Catalysts

In a rapidly changing industry, success often hinges on adaptability and innovation.

*Sponsored

StockWireNews

Tuesday's Watchlist Topper: Low Float NYSE American Profile (SOAR) Is Backed By 5 Key Potential Catalysts

November 26th

Greetings Readers,

In a rapidly changing industry, success often hinges on adaptability and innovation.

Proving its ability to rise to this challenge, one little-known company is focusing on three critical areas: operational efficiency, financial discipline, and cutting-edge solutions.

And here's a few things they've achieved so far:

  • A clear improvement in financial performance, signaling the early success of their turnaround strategy.
  • Forging partnerships that enable greater focus on key strengths and unlock new opp's for growth.
  • Scaling an innovative digital platform that's transforming industry operations, paving the way for broader adoption.

These accomplishments reflect the company's commitment to reshaping its approach and delivering meaningful results.

But this may just be the beginning...

Building on its vision, broadening its reach, and enhancing its offerings, this low-float (fewer than 16Mn shares) idea has recently shared financial news that could potentially draw significant attention.

Also, a 14-Day Raw Stochastic and 14-Day Williams %R hovering around oversold territories (as of 11:00AM EST Monday), and a recent chart high suggesting triple-digit potential upside from current levels, could suggest the seriousness of a possible bounce/reversal near term.

With this NYSE American profile still appearing to be under-the-radar, now may be the best time to consider this company for your watchlist:

*Volato Group, Inc. (NYSE: SOAR)*

Volato is an aviation company advancing the industry with innovative solutions in aviation software and on-demand flight access.

And based on key catalyst potential, SOAR has earned top spot on my watchlist. Take a look:

No. 1 - Major Upside Potential To Recent Highs? Key Technicals Run Oversold Early Monday.

No. 2 - This Week's Q3 Update Signals Volato To Be Gaining Significant Traction/Momentum Right Now.

No. 3 - A Low Float Could Make For A Volatile Situation In Moments.

No. 4 - Growth Plans Continue To Heat Up With Key Strategic Agreement (Leading Provider Of Private Jet Charter Services).

No. 5 - A New G280 Fractional Ownership Program Puts Volato In Rare Air!

But more on those in a second...

Volato: Highly Scalable and Cash-Generating Business Model

Volato secures fleet aircraft orders from top-tier OEMs, which are then sold, often prior to delivery, through fractionalizing.

Subsequently, the company operates these aircraft on 5-year contracts, aiming to maximize their utilization and pro-fit potential.

image

1. Operates the largest floating fleet of HondaJets and has secured a meaningful amount of HondaJet production through 2025 in a tight supply market.

2. Launched first Gulfstream G280 fractional program in the U.S., expanding fleet to super-midsize category.

3. Incentivized underutilization by fractional owners provides excess availability at a favorable market fi.nancing rate.

4. Utilizing a commercial multi-product strategy this excess availability is filled with higher margin non-owner usage.

-----

Volato's Fleet: Historical Floating HondaJet Fleet Growth

In a tight aircraft delivery market, Volato has secured significant firm orders and has been able to grow its fleet rapidly.

Volato has 22 HondaJets on firm order, to be delivered from Q3 2024 and beyond.

image

Clear Path To Pro-fitability: Through a Continued Focus on Strong Execution

2024 is a pivotal year as Volato is positioned to benefit from several maturing strategic initiatives, earning substantial margin from new aircraft deliveries, and unlocking operational efficiencies through the network effect.

1. Expand Fleet

  • 10-12 new aircraft deliveries expected in 2024, compared to only 3 in 2023.
  • Continue to opp-ortunistically expand the fleet through other means; i.e., leasing or aircraft management.

2. Increase Fleet Utilization

  • Continue executing on commercial strategy and expand non-owner usage on the fleet.
  • Ramping up Insider Program client relationships.
  • Volato provides pre-delivery owners the option to start flying on the fleet pre-delivery – increasing utilization.

3. Unlock Operational Efficiencies

  • There is an inherent cost to supporting air carrier operations and in 2023 Volato in-vested in front-loaded operations.
  • As the fleet increases, economies of scale benefits are unlocked.
  • Supported by their proprietary software that drives productivity and operational efficiencies.
  • A larger fleet and increased utilization results in scheduling efficiencies and a reduction in empty-leg flying.
image

Volato Company Highlights

image

Sources: Company Presentation. Company Website.

-----

As mentioned earlier, SOAR has several potential catalysts of critical note. Here they are:

No. 1 SOAR Potential Catalyst - Major Upside Potential To Recent Highs? Key Technicals Run Oversold Early Monday.

Let's take a quick look at SOAR's bounce potential. Here's its 6-month chart:

image

Last week, we watched as SOAR surged to a high of $.76+ on Tuesday.

From current levels, that's upside potential of over 100% (as of 11:00AM EST Monday).

And with a 14-Day Raw Stochastic of approx. 22% and a 14-Day Williams %R of approx. 78% (at 11:00AM EST Monday), SOAR could have key oversold technicals suggesting strong reversal/bounce potential.

Because of this chart and these key technicals, it's that much more important to pay attention to this next potential catalyst...

-----

No. 2 SOAR Potential Catalyst - Last Week's Q3 Update Signals Volato To Be Gaining Significant Traction/Momentum Right Now.

On Monday, SOAR shared this important news:

Volato Reports Third Quarter 2024 Results

Volato Begins Turnaround with Positive Third Quarter Momentum

Achieved Positive Adjusted EBITDA of $3.2Mn on Revenue of $40.3Mn as Initial Strategic Changes Take Effect

...

ATLANTA, November 18, 2024--(BUSINESS WIRE)--Volato Group, Inc. (NYSE American: SOAR) ("Volato" or the "Company"), today announced results for the third quarter ended September 30, 2024, reflecting early progress in a recently launched turnaround strategy aimed at building a stronger foundation and positioning the Company for sustainable growth.

Third Quarter 2024 Fi-nancial Highlights

- Total revenue was $40.3Mn

  • Aircraft sales revenue was $38.2Mn
  • Managed services revenue was $1.8Mn
  • Software subscription revenue was $0.3Mn

- Net loss from continuing operations was $1.3Mn

- Adjusted EBITDA was $3.2Mn

- Vaunt Annual Recurring Revenue was $1.5Mn...

Early Progress on Strategic Goals

Volato began implementing its turnaround plan in the third quarter of 2024, focusing on operational efficiencies and cost savings to strengthen its core business. Key developments in this early phase include:

  • Aircraft Sales: Volato delivered two HondaJets and its first Gulfstream G280 during the quarter.
  • Strategic Partnership with flyExclusive for Fleet Operations: Volato entered into an agreement with flyExclusive to take over its fleet operations, allowing Volato to concentrate resources on high-growth segments like aircraft sales and software development. The transition is expected to be completed in the fourth quarter of 2024, with a resulting reduction in overhead costs.
  • SG&A Reduction: Through a cost-reduction process, Volato lowered its SG&A by 75% sequentially, achieving a quarterly run rate of $0.7Mn. This cost-saving milestone reflects disciplined operational changes aimed at improving long-term financial health of the Company.
  • Vaunt Subscription Platform Growth: Volato's digital platform, Vaunt, has reached $1.5Mn in annual recurring revenue, reflecting early growth in its subscription model that connects travelers to available private flights. Subsequent to quarter end, the Company announced the first flyExclusive flights had been added to the Vaunt subscription platform.

Path Forward

In the third quarter of 2024, Volato initiated the transition of its Fleet Operations to flyExclusive, with the transition anticipated to conclude in the fourth quarter of 2024. As part of this process, customer relationships have been transferred from Volato to flyExclusive to ensure continuity and quality of service. This resulted in the reduction of Insider Card deposit liability of $4.1Mn in the third quarter of 2024 and is expected to be even greater in the fourth quarter of 2024.

As part of its turnaround, Volato is broadening the reach of its proprietary software, Mission Control, originally built specifically to support Volato's operations as a large-scale operator. Now chosen by one of the industry's largest operators, Mission Control has proven its flexibility and effectiveness in addressing varied operational needs. This choice over existing commercial software underscores a significant gap in the market—most available software doesn't meet the specialized requirements of large operators, leaving only a few with the capacity to create custom solutions.

This adoption by a top-tier operator not only confirms Mission Control's adaptability but also serves as a proof of concept for broader industry use. Volato aims to extend Mission Control to other operators who need a strong, adaptable management solution, positioning it as a leading choice in aviation software.

Company Commentary

Matt Liotta, Co-Founder and Chief Executive Officer of Volato, commented, "The third quarter marks the first phase of our turnaround plan. By transitioning operational responsibilities to flyExclusive, we're able to focus on our strengths in aircraft sales and software development, areas that we believe offer significant growth potential. While we are encouraged by these early steps, we remain committed to our long-term goals as we work toward a stronger fi.nancial foundation."

Mark Heinen, Chief Financial Officer, commented, "We achieved an Adjusted EBITDA positive quarter ahead of our previous forecast as a result of strong aircraft sales, including our first Gulfstream G280 delivery, additional cost savings initiatives and the transfer of flight operations to flyExclusive."

Conclusion

With the third quarter serving as the launch point for Volato's turnaround, the Company is building positive momentum through disciplined cost reductions, targeted operational adjustments, and early growth in core revenue areas. Looking ahead, Volato remains focused on its turnaround objectives, balancing steady progress with ongoing efforts to strengthen its core business model.

...

Read the full article here.

-----

No. 3 SOAR Potential Catalyst - A Low Float Could Make For A Volatile Situation In Moments.

According to info from the Yahoo Finance website, SOAR has a relatively low float.

In fact, the website reports this profile to have approximately 15.76Mn shares in its float.

Why is that important? It's important on one crucial level. Volatility potential.

Could more positive company news towards the end of 2024 provide a near term spark?

-----

No. 4 SOAR Potential Catalyst - Growth Plans Continue To Heat Up With Key Strategic Agreement (Leading Provider Of Private Jet Charter Services).

Volato Announces Strategic Agreement with flyExclusive and Outlines Continued Growth Plans

ATLANTA, September 04, 2024--(BUSINESS WIRE)--Volato, the largest operator of HondaJet aircraft in the United States, today announced an agreement with flyExclusive, Inc. (NYSEAMERICAN: FLYX), a leading provider of private jet charter services, to transition the management of its fleet operations to flyExclusive. This move is expected to bring substantial co-st savings and provide Volato with the opp. to focus on its high-growth areas, including aircraft sales and proprietary software.

Under the terms of the Aircraft Management Services Agreement (AMS), flyExclusive will take over all aspects of operating Volato's fleet, including both revenue and expenses. This transition will allow Volato to reduce its cost base by transferring the operational responsibilities to flyExclusive, which anticipates that the fleet will be pro-fit-able under its management.

"We are excited about the potential of this agreement, which provides significant benefits to both Volato and flyExclusive," said Matt Liotta, CEO of Volato. "By shifting fleet operations to flyExclusive, we reduce our operational costs while continuing to focus on delivering value through our aircraft sales and expanding our software solutions, such as the Vaunt empty leg program."

...

Additionally, Volato and flyExclusive remain in discussions about a potential merger, which could further integrate the strengths of both companies and enhance their collective offerings in the private aviation sector.

Read the full article here.

-----

No. 5 SOAR Potential Catalyst - A New G280 Fractional Ownership Program Puts Volato In Rare Air!

Volato Launches the First Fractional G280 Ownership Program in the United States

-- Expands Fractional Offering to Super Mid-Size Category with the Gulfstream G280

-- Volato's First G280 Will be Available for Viewing in an August Multi-City Tour

ATLANTA, July 30, 2024--(BUSINESS WIRE)--Volato Group, Inc. (NYSE American: SOAR) ("Volato"), a leading private aviation company and the largest HondaJet operator in the United States, today announced the launch of its Fractional G280 Ownership Program, expanding its fractional offering to the super-midsize category and becoming the only provider in the U.S. to offer fractional ownership of the G280.

The Gulfstream G280 is designed to complement Volato's existing fleet by offering a spacious cabin that comfortably seats up to 10 guests and boasts an extended range of up to 3,600 nautical miles. This allows for nonstop coast-to-coast and transatlantic flights, providing access to more destinations with certifications for steep approaches and high-altitude landings.

"Our customers' travel needs are diverse, and while the majority of private aviation missions are efficiently served by the HondaJet, there is significant demand for larger aircraft for longer journeys and bigger groups," said Matt Liotta, CEO of Volato. "The G280 addresses these needs, ensuring we continue to provide the right aircraft for every mission. This addition reinforces our commitment to offering tailored solutions that enhance flexibility and convenience for our customers."

...

Read the full article here.

-----

(NYSE American: SOAR) Recap - 5 Potential Catalysts Of Focus

No. 1 - Major Upside Potential To Recent Highs? Key Technicals Run Oversold Early Monday.

No. 2 - Last Week's Q3 Update Signals Volato To Be Gaining Significant Traction/Momentum Right Now.

No. 3 - A Low Float Could Make For A Volatile Situation In Moments.

No. 4 - Growth Plans Continue To Heat Up With Key Strategic Agreement (Leading Provider Of Private Jet Charter Services).

No. 5 - A New G280 Fractional Ownership Program Puts Volato In Rare Air!

-----

Coverage is officially reinitiated on Volato Group, Inc. (NYSE: SOAR).

When updates come available, I'll have them out to you quickly. Talk soon.

Sincerely,

Kai Parker

StockWireNews


(Always Remember The St-ock Prices Could Be Significantly Lower Now From The Dates I Provided.)

*StockWireNews (stockwirenews . com) is owned by SWN Media LLC, a limited liability company. Data is provided from third-party sources and StockWireNews ("SWN") is not responsible for its accuracy. Make sure to always do your own research and due diligence on any day and swing profile I bring to your attention. Any emojis used do not have a specific defined meaning, and may be used inconsistently. We do not provide personalized fin.ancial advice, are not finan.cial advisors, and our opinions are not suitable for all in.vest.ors. The single member of SWN Media LLC owns and operates smallcapfirm . com ("SCF"), fierceinvestor . com ("FI"), and stockstreetwire . com ("SSW"). From time to time, SWN, SCF, FI, and/or SSW will publicly disseminate information about a company via website, email, SMS and other points of media. Please see important disclosure information here: www.stockwirenews.net/disclosure Pursuant to an agreement between SWN Media LLC and TD Media LLC, SWN Media LLC has been hired by TD Media LLC for a period beginning on 11/19/2024 and ending on 11/20/2024 to publicly disseminate information about (SOAR:US) via digital communications. Under this agreement, SWN Media LLC has been paid fifteen thousand USD ("Funds") to disseminate information about (SOAR:US) via digital communications. Pursuant to an agreement between SWN Media LLC and TD Media LLC, SWN Media LLC has been hired by TD Media LLC for a period beginning on 11/25/2024 and ending on 11/26/2024 to publicly disseminate information about (SOAR:US) via digital communications. Under this agreement, SWN Media LLC has been paid two thousand five hundred USD ("Funds") to disseminate information about (SOAR:US) via digital communications. Neither SWN Media LLC or its member own shares of (SOAR:US). The single member of SWN Media LLC is also the single member of TD Media LLC. Pursuant to an agreement between TD Media LLC and Beyond Media SEZC, TD Media LLC has been hired for a period beginning on 11/25/2024 and ending on 11/26/2024 to publicly disseminate information about (SOAR:US) via digital communications. Under this agreement, we have been paid twenty-five thousand USD ("Funds"). These Funds were part of the funds that TD Media LLC received from a third party who did not receive the funds from the issuer and does not own stock in the issuer but the reader should assume that the clients of the third party own shares in the issuer that they will liquidate at or near the time you receive this communication, which has the potential to hurt share prices. To date, including under the previously described agreement, TD Media LLC has been paid fifty-five thousand USD ("Funds") for (SOAR:US). Neither TD Media LLC or its member own shares of (SOAR:US). https://lifewatermedia.com/disclosure/soar/

Unsubscribe

Stock Wire News 160 West Camino Real Unit 886 Boca Raton, Florida 33432 United States

No comments:

Page List

Blog Archive

Search This Blog

Please, wear this on Christmas!

My only official MAGA Christmas shirt.  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ...