Been holding my FLY - last buy I made was $13.15 last August but the divi was lower back then. Starting to look juicy at 7% here. Thinking of adding soon. I know several of you recently sold - I'm just a sucker for value, even if management has made mistakes. Often that's what creates the value in PPS - I think that's the case here. Overall I think management can work their way out of the hole, and in the meantime I'll collect 7%. The question is, do we visit the 52-week low, even with a higher divi and overall higher market?
Strum- The company just re-iterated that they have identified $600 million in airplanes to be purchased in the short term. They recently announced the purchase of four aircraft for $160 million. The company has already released info that they expected to close a deal for ten fairly new to new aircraft with an average age of three and a half years on and leases in place for an average of eight and a half years. The info was so specific that I thought it was a done deal. Another wrong thought on my part. The deal when announced should have a positive impact on the share price. That's what we're lacking, a meaningful expansion of the fleet to produce leasing revs to offset the dilution from the share offering. The purchase of an additional 20-25 fairly new airplanes might get us back to square one regarding revs per share. In the meantime, we have the dividend. Can't believe that Mr Barrington destroyed so much share holder value for we longs with the un needed share offering. During the Q1 2013 conference call he stated that the company had ample cash on hand and cash flow to fund expansion of the fleet w/o the need for a cash raise. He had it right, so why the SO?
We can debate the mindset of "miss management" all day and night and still not come up or down with their logic for doing what they did the past little while. Its like they have had onset of Alzheimer or an Aneurism. Needless to say, they've stubbed their toe, hit the knee on the trailer hitch, and been run over by a shopping cart all in a matter of moments. Fly is so badly damaged goods, that I am truly surprised someone doesn't come around and put them out of their misery. Only trouble is no doubt "miss management" would screw that up too and play us shareholders as suckers one more time. Just so sad.