Tag: Exiting

AerCap Holdings: Exiting Turbulence, Stock Looks Cheap (NYSE:AER)

I’ve been looking at companies in the airline industry looking for potential bargains among the depressed stocks. This is especially true now as developments in the coronavirus situation slowly point towards a return to normalcy. Out of all the stocks in the industry, I am most bullish on AerCap Holdings (AER). Below, I walk you through my investment thesis.

Just a brief business overview on AerCap. It one of the largest airplane leasing companies in the world. Its business model effectively works similarly to a financing company. AerCap uses its scale to acquire aircraft at discounted prices, funds this using lower-cost debt then turns around and leases the aircraft to airlines all over the world.

AerCap owns 931 aircraft which it offers for lease. The company’s fleet is relatively young with an average age of 6.4 years. Given the number of flights canceled this year, its aircraft probably didn’t suffer

Read More

Weir’s Strong Mining Business Holding Up Well, But Exiting Oil & Gas Could Take Time (OTCMKTS:WEGRY)

This is a bad time to have exposure to oil and gas capex, and fracking machinery in particular, as the vast majority of the North American fleet is idle and there’s really no demand for either new equipment or aftermarket parts. It’s not such a terrible time to be in the mining equipment business, though, and Weir Group’s (OTCPK:WEGRY) (WEIR.LN) strong aftermarket-driven business has held up quite well during this downturn.

Although I was already expecting a weaker outlook for oil/gas when I last wrote about the company, I wasn’t expecting what COVID-19 would ultimately do to the company’s core markets, and the shares have underperformed, including underperforming other mining names like Epiroc (OTCPK:EPOKY). Although I expect healthier demand for mining equipment in 2021, and I think the negative impact of oil/gas is probably more than amply reflected in the share price, it’s going to be an issue for

Read More