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Air Lease (NYSE:AL) is part of an oligopolistic market whose business is focused on acquiring aircraft from the manufacturers Airbus (OTCPK:EADSF) and Boeing (NYSE:BA) and subsequently leasing them for periods
Air Lease: Trading Below Book Value
Summary
- The company operates in an oligopolistic market with high barriers of entry.
- Revenues, net income and book value have systematically increased over the last 10 years above 10% per annum.
- Debt is a concern, but it is asset-backed and was signed at a fixed rate.
- Air Lease is trading below book value and could be an interesting opportunity for a value investor in the years to come.
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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Short position through short-selling of the stock, or purchase of put options or similar derivatives in AL over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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