Monday, December 16, 2013

Seeking Alpha: Macquarie Infrastructure Once Again Thinking About Growth

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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