Lan Airlines S.A. (ADR) (NYSE:LFL)
The Company is a passenger airline in Latin America and the main air cargo operator in the region. It provides domestic and international passenger services in Chile, Peru, and Argentina and international passenger services in Ecuador.
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Recs
High growth, low PEG
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Excellent position for growth as new planes are delivered and south america continues to develop, good history of profitability which is rare enough for an airline
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With a ROE of nearly 50% in 2006 and a 23% increase in revenue from last year, I feel that this company is the dominate player in the latin american market. Majority of their revenue is from cargo shipping, but they also ferry people around.
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An airline that is consistently making money. ROE 38.27%, passenger traffic up 29.5% in April compared to same month last year. EPS is 3.88, and P/E 18.52...Looks good to me!
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IBD 100 Top 25, 4/14/2007
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1-good service.
2-OvercomingArgentine discrimination.
3-Increasing airline usage,both from local business and from international tourism.
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south american $ inflow
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phenomenal growth in booming Chilean and South American market with great management and metrics-still cheap despite big 3-year rise.
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cheap gas- more profit
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As Europe (rather than the U.S.) becomes the destination of choice for Latin Americans, this airline could benefit from the increased exchange of people of goods to, for example, Spain from Argentina.
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Lan is slowly taking over the skies in South America, and their higher % of revenues from cargo makes their model more robust than most airlines.
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