Air T Inc (NASDAQ:AIRT)

Air T, Inc. (AIRT), is ran in three segments Mountain Air Cargo, Inc. (“MAC”) and CSA Air, Inc. (“CSA”) overnight air cargo, Global Ground Support, LLC (“GGS”) ground equipment sales and Global Aviation Services, LLC (“GAS”) ground support services.

The overnight air cargo segment is a concern of mine. Besides on occasion providing maintenance services to other airline customers and the U.S. Military. FedEX is MAC and CSA sole costumer. Keep in mind that air cargo is 59% of AIRT's operating revenue.

AIRT states in its 10Q "These agreements are renewable on two to five-year terms and may be terminated by FedEx at any time upon 30 days’ notice. The Company believes that the short term and other provisions of its agreements with FedEx are standard within the airfreight contract delivery service industry. FedEx has been a customer of the Company since 1980. Loss of its contracts with FedEx would have a material adverse effect on the Company."

I believe the stock has taken this to account in its price and the value is fare. after deducting Total Liabilities with Total Current Assets I estimate the companies worth be around 21.09 mil with a market cap of 21.13 mil you are about getting dollar for dollar. the stock is trading about 25% off it 52 week low and has a PE of 7.26