Grupo Aeroportuario del Sureste (ADR) (ASR)
A holding company, which conducts all of its operations through its subsidiaries.
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Rated 5 stars.
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Best of the Mexican Airports, this toll bridge company is the gateway to Cancun. Pays a solid dividend and will be a great long term holding.
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High dive, highly rated at investorplace and msn
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Considering Book value, earnings, and market cap...this should beat the market in 5 years.
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A guess on the time frame, but I just returned from Cancun a week or so ago, and my conversations with the drivers and workers at our hotel indicated business on the up-swing. The airport was humming, and we got to the airport well in advance of departure--which is great for ASR's business. ASR is a Cancun play. Maybe a slowdown if people who want to travel now don't have passports. Country well prepared for flu--dare I say perhaps better than U.S.? Tollgate business alive and well, great dividend, stable income play (with perhaps hiccups!). Destination stock not so tied to consumer concerns--hey they're on vacation!
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ASR has a strong balance sheet, limited debt, their net profit margin is increasing year over year, and they pay a healthy, consistent dividend. The way ASR held up during the recent swine flu and heavy dividend capture trading leads me to see strong support at current levels with limited downside and huge upswing potential. I interpret the technicals as showing a possible 10-15% lower level from here with a good possibility for a double on ASR within the next 12 months. In short, the potential upside heaviliy outwieghs the possible negatives as I see it.
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Low relative PE, good star ranking, PEG & 09 PE still below normal - bottom fishing 4/20 picks.
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Good fundamentals. Low valuation.
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ASR has a monopoly on air traffic into Cancun. The business operates like a toll booth. I don't foresee any major decline in travel to Cancun in spite of the recession. Cancun remains and will remain a popular destination. Management appears wise and owner-friendly. The generous yield seems safe and will help the stock outperform S&P.
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Travel is down, and will be declining further.
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buy on dip
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ASR is a great stock with great upside, just not one of my top picks.
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Cheaper than before and still just as good.
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Looks like great opportunity for growth.
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I'v got PAC & OMAB, so why not ASR? Especially now that it is a HG.
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Randolph McDuff is picking, so am I...
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Was hoping it would pull back more off its high, with real money I'd start looking hard at this down in the 40s.
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Positives:
1. I expect retirees to move in unpredecented numbers to Mexico. They will have large amounts of disposable income to fly around the country having a good time. Warm climate, & the peso has remained steady with the dollar (don't expect that to last). Also retirees should be a nice stablizing force in the region.
2. They have a monopoly until 2050.
Negatives:
1. High oil prices have slowed current passenger growth. Short-term problem.
Recs
This Mayan Riviera Airport Group stock is hot! And lets face it, you aren't going to drive there. Risk is being assessed to an additional airport being built in the region, but I would guess that this group's performance with the new #3 Terminal in Cancun will win them the bid and provide a lot of jobs for the area. Keep an eye on hurricanes that graze the region, meaning it should be actively traded to avoid getting seriously damaged like it was in 2005.

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