Gulfstream Intl (NYSE AMEX:GIA)

The GeoTeam® attended the 2009 Taglich Brothers Annual Small Cap Equity Conference, where Orchids Paper Products and Gulfstream Intl Group Inc presented their growth stories to analysts and potential investors. Both companies gave articulate presentations outlining recent accomplishments and future goals.

Although the GeoTeam® has discussed Gulfstream in prior notes, the company's presentation has shed further light on the growth opportunities that lie ahead for the company arising from recent restructuring moves and industry trends.

Key Points of the Gulfstream presentation:

Several factors are creating market opportunities, while at the same time limiting future competition.

1. Larger carriers are exiting smaller markets where it is not efficient for their large capacity planes.  They are also abandoning domestic markets to focus on international markets.  These abandoned markets are a good fit for Gulfstream's smaller 19 passenger planes.
   
2. Smaller markets are also being abandoned by regional airlines as they continue to gravitate toward larger jet aircraft in the 70-100 seat rangeits  and away from smaller regional jets and turboprop aircraft.   Many of these smaller carriers, known as hub feeders, derive their business from partnerships with larger carriers and tend to follow the larger carriers as they exit smaller hubs.
   
3. Gulfstream is further along the curve than many of its competitors with regards to its restructuring efforts.  Gulfstream has a chance to exploit this situation and purchase assets at reduced prices materializimg from the global economic recession while entering new markets.
   
4. Barriers to entry are even more prevalent today than ever.

The end result for Gulfstream is an opportunity to use its strengths to capture abandoned markets while facing little competition.

What will be the key to driving Gulfstream's shares price?

The airline industry is not necessarily one that investors flock to due to a myriad of uncontrollable factors.  Delving into the Gulfstream story one can surmise that the company is not your typical airline. The company ultimately needs to 1) relay this message to wall street and 2) continue delivering improved financial results, two tasks that the GeoTeam® believes the company is keenly aware of.