Like so many other asset plays underpinned by debt, Macquarie Infrastructure (MIC)
("Macquarie") had a near-death experience in 2009 as the combination of
suddenly weaker economic activity and the meltdown of the credit
markets choked off both its cash flow and its access to liquidity. The
company survived, if by the skin of its teeth, and seems to have emerged
as a wiser, or at least more conservative operator. Now the company is
once again thinking from a growth point of view, and positioning the
company to benefit from a stronger economic recovery.
Certainly
there are no guarantees that management's new revised vision will work
out. The aviation operations are quite cyclical and the shares have
already over 40 times from their crisis lows. Even so, the company is
investing in businesses where it looks to have leverageable scale and
the valuation does not seem all that demanding. That makes this a
worthwhile name to consider, particularly for investors looking for
income-oriented plays with the means of offsetting an environment of
rising rates.
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Macquarie Infrastructure Once Again Thinking About Growth
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