Grupo Aeroportuario del Pacific S.A.B (ADR) (PAC)
The Company manages, operates and develops airport facilities, mainly in Mexico's Pacific Region.
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company is trading well under book value and is financially sound. buy buy buy.
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Pacific has had an a substantial profit margin over the course of the past four years, totaling roughly 45%. Their high profit margin displays their competitive advantage within their market place, and their low long-term debt says there is plenty of room to grow. The company has substantial accumulated reserves, which can help to weather the current financial storm. Earnings per share have grown consistently (except one year) over the past six years, and they have an excellent ratio of current assets to current liabilities (roughly 28,000 to 1,400). Lastly, the company's current book value per share is at $47.66, and it is currently trading at $29.63. This company's share price is undervalued by just over $18, so a market correction could substantially help shareholders earn a profit. Pacific's strong financial situation coupled with their current undervalued share price make this company a strong buy in my book.
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Competitive Advantage!
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tourist travel down
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Very cheap. Price to Tbook value is about .7.
Mang. is understating their earning. Looks like there assets have a avg life of about 2 years. thats why too aggresive.
EBITDA margins of 60% plus.
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tmfeldrehad
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"There is no practical alternative to air transportation." -Dan Goldin, ex-NASA Administrator.
As the growing Mexican emerging market and US upper middle-class citizens look for affordable vacations in a sun-drenched land, PAC will be there.
And a 9.8% and historically-growing dividend will pay us to wait for the turnaround from the current transportation downturn.
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just got a feeling
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mexico mkt recent collapse makes this a very cheap buy
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Graham formula gives me a 60% margin of safety. May not do much for a year, but with a 10% dividend I can afford to wait.
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May suffer in the short term, but still a good price for a great long term prospect. Currently priced for very little growth but benefitting from an obvious moat.
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regional mx airport operate, maintain, develop 12 in pacific/central mx. trading at lower end of 52 wk range due to economic slow down, has significant revenue growth potental.
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mmm. Love that dividend. Love those financials. I'm in.
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fool recommended
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convincing story, stranglehold on airport management in Mexico. could rebound nicely or world war III could erupt and people will drive around in vans outfitted with machine guns looking for potable water.
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Alright I'll bite. Sucker for a 7% dividend and the air traffic will return...
http://www.fool.com/investing/dividends-income/2008/09/12/i-think-ive-found-the-perfect-stock.aspx
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Chose pick based on advice in fool article "I think I've found the perfect stock" http://www.fool.com/investing/dividends-income/2008/09/12/i-think-ive-found-the-perfect-stock.aspx?source=ihptclhpb0000001
I like the dividends and the wide moat...this company should outperform easily.
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monopoly for decades. mexican economy will grow.
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Grupo Aeroportuario embodies the enduring toll booth metaphor. Everytime a visitor travels through an airport where they hold the contract a toll via an airport product or service is paid to Grupo Aeroportuario. Talk about moats, they have no competition at each airport. It's a Buffet style thumbs up.
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Here's what we know. Oil prices are through the roof. The economy stinks. People are traveling less. Airlines are going bankrupt. It's just a horrible time to buy Mexican airport operators.
Which is exactly why I'm here. You see, Grupo Aeroportuario del Pacífico and its counterparts like Grupo Aeroportuario Del Centro Norte own exclusive rights to Mexico's airports for the next several decades. They hold just about the widest possible economic moat you can have in any business. I really don’t care what these companies do over the next six months, or even over the next few years. Over the long-term, they're money-minting toll booths with years and years of growth ahead of them as the Mexican economy develops and its middle-class starts traveling more frequently. Right now, their stocks are "muy barato"!

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