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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