Another Chance to Rev the Jet Engine
During the market pullback last fall, I bided my time and ended up buying shares of Air Transport Services (ATSG) pretty well -- below where insiders signaled their optimism last August and September, as I wrote in my Oct. 21 column. So, despite a notable bout of weakness in February for this name, I've still booked a solid gain. Recently released quarterly results do indicate a set of challenges for the company in the near term, but I still see shares as being undervalued longer-term.
Air Transport leases planes and crews to firms that need to transport goods. Global-delivery firm DHL is Air Transport's largest customer, generating just over one-third of the company's revenue. The U.S. military generates roughly another 15% of sales. Besides North America and Europe, Air Transport's planes service higher-growth markets, such as internal transport within Brazil, India and China. The company's regional aircraft fleet is not deployed in the more cutthroat long-haul segment of air transport, and it many of its assets are under long-term leases. ...521 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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