Another tact as useful for the mind as it is the pocketbook is to begin researching outside of your power box. Assume the streak will end. What then? Will you have already rolled into some more conservative plays? An early idea I'm looking at in that vein is Aircastle AYR, a Connecticut company that acquires and leases commercial jet aircraft to passenger and cargo airlines worldwide. It aims to pay out 100% of its net income in cash dividends, which makes it sort of REIT in the sky. The company recently announced that it had entered into an agreement to purchase 38 aircraft for $1.6 billion through February 2009, a dozen of which are freighters. I like AYR as a play on global freight and because it can earn a lot of money by borrowing cheaply and buying and chartering wisely. Its fourth-quarter dividend beat expectations by 15%, amounting to 43.75 cents a share. Figure you can get up to 20% earnings growth and a dividend of around 6.2%.
As I noted in another thread most of these guys recent secondary was snatched up by Fortress @ $33. A pullback to $34 something might make a real nice portfolio position.... ~ stoney
As I noted in another thread most of these guys recent secondary was snatched up by Fortress @ $33. A pullback to $34 something might make a real nice portfolio position.... ~ stoney