Thomas Lott
Long/short equity, deep value, special situations, hedge fund manager

Aircastle Limited: Significantly Undervalued At 6x Earnings, Sports A 6.0% Dividend Yield

Aircastle Limited (NYSE:AYR) is a lessor of freighter and passenger aircraft, substantially underappreciated by the market on residual liquidity fears and poor technicals. Its biggest holder and the founder of the business, Fortress Investment Group (NYSE:FIG), has finally exited its position after a secondary offering this summer, as well as via direct share buybacks in the third quarter of this year.

Going forward, the lack of selling pressure from Fortress as well as a $50mm buyback plan should provide support for AYR stock. Even better, Aircastle's earnings prospects look particularly strong over the next 12 months as lower cost debt in addition to growth in new aircraft indicate that earnings next year likely beat Street estimates...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details