Stock Ideas 
Investing Ideas Come fly with me
Investing Ideas Come fly with me 
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| Even traditional havens such as gold are deemed too risky in this climate.” — Martin Slaney, GFT Global Markets | |
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| Saturday, 29 September 2007 | ||||||||
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Own the planes themselves. We know airlines need more planes, and new aircraft need to be more fuel efficient. If rational approaches to limiting landing and takeoff slots emerge, bigger planes will be even more in vogue. But if you walked into a showroom in Seattle or Amsterdam and asked about delivery times for new passenger or cargo fleets, the answer would be termed in years. If you own planes, you own the market. There are three leaders in this market, and each is structured as a publicly traded partnership (PTP). They’re all headquartered or registered (for tax reasons) in Ireland. Think of them as REITs for airplanes.They own planes that get leased out on long-term contracts. All they have to do is service their debt, pay management and the rest is profit--with the bulk going to us in the form of nice, fat dividend checks. Two have been in the market for almost a year now, AIRCASTLE (NYSE: AYG) and GENESIS LEASE (NYSE: GLS). As of this week, BABCOCK & BROWN AIR (NYSE: FLY) has joined them.
Babcock & Brown Air is the offspring of Australia-based BABCOCK & BROWN (OTC: BBNLF, Australia: BNB), the same bank in Sydney that, like it's crosstown peer MACQUARIE BANK (Australia: MBL, OTC: MQBKY), is getting on board great businesses and packaging them up to trade on their own. And all the spinoffs pay piles of cash to investors. For some strange reason, market observers don’t take the time to look at these airplane REITs. The result: They're trading as cheap as the tarmac they land on. But we've already been collecting huge cash flows from the first two, and Babcock & Brown Air shouldn't be any different. The dividend yield should fall somewhere in the mid- to upper 8 percent range. (Yahoo Finance won't show a dividend yield because the company just went public.) Read the filings, then come fly with me. The cash will flow faster than the $2 bottles of water rolling down the aisle in coach. Perhaps more of us will soon be able to afford to fly first class. Source Excerpted from : Pay Me weekly This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
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