Grupo Aeroportuario del Pacific S.A.B (ADR) (NYSE:PAC)

Bought this on the cheap valuation (under 1 p/b) and dividend yield. Not sure what to do with it now that's it's grown 70% from purchase price.

This company manages, operates and develops airport facilities which are essential for businessmen who often travel abroad. Not only that what this company can do, this too can haul packages of products which, if I 'm not wrong can go to my city, particularly to me. I wish this can at the right time, start sending me dividend warrants.

Growing Mexican prosperity leading to more domestic travel..

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.

Competitive Advantage!

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.

tmfeldrehad

"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.

just got a feeling

mexico mkt recent collapse makes this a very cheap buy

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.

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.

mmm. Love that dividend. Love those financials. I'm in.

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

monopoly for decades. mexican economy will grow.

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.

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"!

The value here is absolutely incredible. This $30 stock is worth at least $40 and likely much more in the future.

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.