Thursday, September 4, 2014

Seeking Alpha: Air Transport Group Finally Delivering

It has taken a while, but Air Transport Group (NASDAQ:ATSG) is finally starting to show some of the potential I thought I saw back in September of 2013 and again in March of this year. While the shares are up almost 30% since that March piece, they are up only about 15% over the September piece and lagging the market isn't a cause for celebration.

Air Transport Group appears to be in the right place and if not at the right time, at least at a better point in time. The company has retired its DC-8 fleet, has a solid fleet of 767s and good growth potential in its relationships with Cargojet (OTC:CGJTF) and West Atlantic. Air cargo demand is improving (particularly for mid-sized freighters) and the company should start generating free cash flow this year. I think relatively conservative assumptions can support a fair value well into the $9s, and it is not that hard to get into the low double-digits, and I think there's still further for these shares to go.

Read the full article here:
Air Transport Group Finally Delivering

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