AYR airliners are 100% leased. What does oil have to do with them?
It may cost their customers who have leased the airliners for a period of 4.5 years to use the airliner less but who cares.
Do you understand what AYR does?
...and additionally FLY/AER have made some phenominal decisions during this crisis - so I don't find them to be quite comparable to AYR. Some of those decisions are now paying-off in spades.
IMHO it's a perceived risk in the energy spike. When we saw $150/bbl oil there was not a lot of rationality, just a complete avoidance of anything that has an engine. Oil now pushing $90.
Market is not going "nowhere" - at least, I've made money on longs in a serious way despite horizontal movement. The market is playing earnings in a way that hasn't happened in a while. A pause in the DOW is not necessarily a worry.
During the last two months the DOW, S&P 500 and NASDAQ indexes are all up 20% if you look at the 3 month charts on Yahoo, yet this company is down 20% in the same time period.
Why the 40% swing on AYR?
Everything I read about the airlines is that they are having their most profitable year in 5 years. More people are flying in 2010, than 2008 or 2009, and the trend looks even better for 2011.
So why is this company performing so poorly when my FLY shares are up 20% over the last few months. Same aircraft, same lessees, is it better management?
Out in the low $9's and that was seriuosly over priced?
trading at 57% of book value on an airline portfolio that at that stock price is yielding 16% on current lease revenue.
AYR could be sold at a quick lunch meeting for $10 per share.That would allow the buyer to own the fleet and the customer base for 3.250 billion after paying off the debt. The leases would yield 16% to the buyer at that stock price. Show me some where money can aquire assets that are yielding 16% right now.
Seriously overpriced? You are not even close to being right!
Watch AYR going into 2011.
8.43 on 11/4......after all that is only 3 days away, but I wouldn't count on it..After all what in the world do you think the oompany can do about it if hedge funds continue to add pressure and sell this down more? a bit cavalier on your part, but good luck...I have no position....got out last week when it was seriously overpriced!