Down about 25% since my last write-up, AerCap (AER)
has been a lousy stock over the last six months and investors can’t
even console themselves with “at least I’m getting dividends”, as AerCap
management puts surplus capital to work through share buybacks instead
of dividends. I think there are multiple issues affecting the stock,
including worries over some recent airline bankruptcies, concerns about
the health of the Chinese market, rising rates, increased competition in
leasing, and near-term pressures on reported earnings metrics.
None
of these issues impact my core long-term thesis on AerCap, though, and I
continue to believe that these shares can and will reward long-term
patience from shareholders.
Continue here:
Despite Significant Turbulence, AerCap Still Looks Undervalued As Air Traffic Continues To Grow
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