Thursday, March 24, 2016

Seeking Alpha: A More Appealing Opportunity At Macquarie Infrastructure

Stock market volatility is usually spoken of as a bad thing, but experienced investors know that the ups and downs give them the opportunity to buy or sell at better prices. Given that I don't see anything fundamentally wrong with Macquarie Infrastructure Corporation (NYSE:MIC), I think the stock's 20%-plus decline since my lukewarm call (based on valuation) in early June just may be an interesting second chance opportunity for investors to buy into a solid long-term dividend-centric infrastructure story.

Investors are clearly worried about anything related to petroleum these days, but I think MIC's storage operations are a little more stable. I also believe that MIC will have the opportunity to use its relatively healthy balance sheet and liquidity position to cherry-pick high-quality midstream assets trapped within bad balance sheets. Even if MIC doesn't elect to go that route, further expansion in airport operations and power gen can soak up capital and convert it to future dividend streams. I continue to think that a low-to-mid $90s fair value is reasonable for the shares, with Atlantic Aviation and IMTT driving the overwhelming majority of the cash flow and value.

Read more here:
A More Appealing Opportunity At Macquarie Infrastructure

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