The Microcap Speculator submits: It's easy to identify the losers in the airline and aeronautics industries -- just look at the plummeting stock charts and mounting bankruptcy filings. Identifying the winners is more difficult, but I think I have found one. Global Aircraft Solutions (ticker: GACF.OB) retrofits and resells planes coming off lease from ailing U.S. carriers and resells them to emerging market airlines.
For example, GACF's Hamilton Aerospace subsidiary recently bought a used 737-300, retrofitted and repainted the aircraft, and sold it to an undisclosed carrier in the United Arab Emirates for $7,500,000. GACF has announced a joint venture with major aircraft leasing company BCI which should further ramp its aircraft trading business. The joint venture (30% owned by GACF) has acquired 26 Boeing 737-200's which will be retrofitted and resold. GACF also provides outsourced maintenance for smaller airlines and aircraft leasing companies. All of these recently-announced deals should substantially boost revenues over the coming year. GACF has been consistently profitable, and I expect earnings will increase as gains are booked from the aircraft trading business.
I like the stairstep pattern in GACF's chart, and think that the technical picture looks great as long as support holds around 1.47-1.48.
DISCLOSURE: I am long GACF.OB. Not a recommendation to buy or sell any security. For informational and educational purposes only.