I previously wrote about how China Aviation Oil (CAO) offers value and growth at a price of SGD1.45 per share. A recent history of SATS is a useful analogy for understanding CAO’s potential to become a successful and independent aviation fuel supplier. SATS is a gateway services and food solutions provider that mainly serves the aviation industry and was once 80% owned by Singapore Airlines. Although both companies operate in different parts of the aviation industry, I see a few similarities between SATS and CAO. Both companies derive 40-50% of their annual revenue from a single client and are trying to diversify by expanding into other Asia airports. Lastly, both companies have a conservative expansion strategy through either joint ventures or the purchase of minority investments. In 2009, SATS was spun off from Singapore Airlines through an in-specie distribution. Since the spin-off, Singapore Airlines is still its single largest client ......