Profits in Mexican airports
I've got some room in my Top Stock Wall Street Survivor portfolio so I used BarChart to screen for the stocks trading over 100K shares per day and sort for frequency. After using my normal filtering process I ended up with Groupo Aeroportuario (ASR). The company has concessions to manage and operate airports in such hot southeastern airports of Mexico like Cancun and Cozumel. Very hot tourist areas with major air traffic from the US and Europe.
ASR has hit 14 new highs in the last 20 trading sessions and in 4 for the most recent 5 days. There has been a 34.17% price appreciation in the last 65 days. It's hitting on all cylinders with BarChart's technical indicators giving 13 out of 13 signals to buy for a 100% buy rating.
Wall Street seems to confirm the price momentum with the analysts consensus that sales will increase 14.3% and EPS by 34.6% in the coming year. The 7 analyst give 4 buy, 2 hold and 1 sell recommendations. The sell rating is so old I can even find it listed but it's still in the data feed.
On other sites Mark's checklist on Wall Street Survivor rates the stock with a Survivor Sentiment rating 5/5 and a fundamental rating of 4/5. Motley Fool CAPS members confirm with a vote that the stock will outperform the market 240 to 10 and the All Stars vote of 94 to 2. The Wall Street columnists Motley Fool follows are split 1 to 1.
This stock passes my screening process:
1 - The stock is hitting new highs and has a BarChart buy rating of at least 80%
2 - If the stock has Wall Street following none of the major brokerage firms have negative reports with sell signals
3 - Other stock rating sites agree with my first 2 tests
Recommendation: I'm adding Groupo Aeroportuario (ASR) to my Wall Street Survivor portfolio around 54 and would sell if it failed to trade above 45.
By the way the person who thought the stock will under perform was Jim Cramer and the stock has had a 47.26% price increase since he gave his sell signal. I mentor the Senior Economics class at Charlotte Latin School in a stock market competition with other schools across the US. Every semester I give them the same homework assignment. Watch Mad Money and/or Fast Money with your parents and discuss if this is valuable financial information or just TV entertainment. This week they will be making their oral presentations and giving me their opinions and I'd like to hear yours'.
Disclosure: I hold no positions in Grupo Aeroportuario (ASR) at the time of publication
Jim Van Meerten is an investor who writes on financial matters here and on Financial Tides. Please leave a comment below or email FinancialTides@gmail.com