Taking a Flier on a Transport Stock

Shares of Air Transport Services Group (ATSG) are understandably well off their yearly highs, given the valid concerns about the sad state of global economic growth. Air Transport leases planes and crews to firms that need to transport goods. A slower economy eventually equates to lower demand for Air Transport's services. While my still-high cash level of 50% stems directly from my concern about the economic growth, I have nonetheless decided to follow insiders in trying some bottom-fishing in ATSG.

Global delivery firm DHL is Air Transport's largest customer, generating just over a third of revenue. The U.S. military generates roughly another 15% of sales. Besides serving North America and Europe, Air Transport's planes serve 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 Air Transport has many of its assets under long-term leases....630 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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