Fly Leasing, Ltd. (NYSE:FLY)
The Company was formed to engage in the business of financing as well as acquiring, leasing and selling commercial jet aircraft to airlines.
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Up up and away. While this is not a super performer its portfolio of planes are the envy of the industry. Its recent selling, at a handsome return, its two oldest jet liners only make this a better investment.
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Severely oversold. Great dividends well financed company.
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This company is not exposed to the financial crisis. The falling price of oil means cheaper flights and an increase in air travel. Aircraft builders are very far behind on orders, and the airlines are having to continue using less efficient older aircraft. FLY's fleet is newer and fuel efficient. The airlines will need to lease more aircraft to meet demand for the next two years. If the price of oil rises again it is more cost effective for the airlines to lease fuel efficient plains than to use older ones.
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TRACKING TOP TEN YIELDS IN STOCKS UNDER 1B MKT CAP
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Part of B&B of Ireland.Leases commercial aircraft.Got back defaulted craft from ATA & leased them at a higher rate.Great dividend for an $8 stock at $0.50/share quarterly.
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Trades at 0.6x book value. Only 2 planes on order, so capital needs are very light.
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Airline industry will rebound once the market stabilizes and starts going up. Oil will go down to 80 or so, once drilling on US soil happens.
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Trading well below Private Market Value.
Dividend is sustainable
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has lived up to its excellent dividend so far and has not disappointed in earnings and outlook. Industry is not doing great though, but if you are willing to take some risk, the return may be tremendous. If not then hold on for 5 years and the dividends wil cover your cost
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Like all the other aircraft lessors, FLY has become guilty by association. The market is punishing anything tied to airlines and financials. And, unfortunately, the market is tying FLY to both sectors.
The reality is that FLY leases a critical asset to the airline industry... a modern, fuel-efficient airplane. The company has no issues getting suitors from all over the world to lease its aircraft. It is and will continue to be very profitable, with a trailing PE of ~10 and a PEG well below 1. And as for the credit crunch?? FLY has no refinance obligations until 2012, pays a 20% dividend (which can be more than covered for by current and future cash flow), and will have up to 10% of the float repurchased in the coming year.
So while the market unjustly punishes this stock, I will be happy to purchase at these levels, sit back, and collect a 20% dividend for my troubles. The next few earnings reports should speak for themselves and ultimately price this stock at a valuation it deserves.
Recs
20% Dividend. Aircraft leasing is a long term stable business. This company just had an IPO in Late 2007, it raised $430 million, it has a $1.2Billion 5Yr line of credit. Management & Insiders own over 25% of the shares, so they are motivated.
It's buying back its own shares now they are cheaper than the IPO. The company appears to be getting deals done.
For a small untested small cap, I like it. I am considering taking a real world flier (pun intended).
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multiple bearish technical signals .7
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13.3% divi
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economic conditiond create cutbacks in companies
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good model and div
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8.7% dividend. Hang onto the stock for a while and you're making money, plus you can always sell it.
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