prepnet- Unfortunately, you may have to go the the ayr message board to discuss fly. We have a lunatic lurking about that tends to attack anyone and anything at will. There is a possibility that he will retire but then again, maybe not. He enjoys busting chops too much.
One other thing from the conference call and it is only a feeling I got from reading in between the lines. Steve Zissis, the CEO of BBAM, our servicer was one of the presenters at the CC. We own 15 percent of BBAM and I believe that they own about 8 percent of our shares. Our interests are aligned and that can only be a good thing. Anyway, he stated that given what's happening in Europe and China things are better than one might have expected. That's a negative change from previous statements. Also, he alluded to some softness in rates with some of the airbus airplanes. When questioned about it during the Q and A it seemed that he had on his dancing shoes. I took it as a heads up and will be listening in to the ayr cc on the 8th. No doubt that their management will be pressed on the matter at that time if it isn't included in the presentation.
Don't lose patience with fly, it's a keeper. It was undervalued before the acquisition and that undervaluation increased by 80 per cent after the deal closed. Keep this in mind. In 07 when the company went public it quickly traded up to the mid twenties. At that time I believe they owned 47 airplanes and there was twenty four percent more shares outstanding. Now we own 109, no make that 110 airplanes because they just purchased another newer airplane. Additionally, we repurchased twenty per cent of our debt at 49 cents on the dollar. It gets better, we recently purchased 15 percent of our servicer, BBAM and partnered with private investors to purchase and lease out 4 additional planes. Combined, these deals contributed 1.3 million to Q3 earnings or 5.2 million per year or 20 cents a share.
Yeah, I noticed the info on softness in oversupply as well. I have heard some concern from analysts on various calls that brand new narrowbodies especially airbus could get oversupplied as everyone tries to grab as many as they can. Will be watching this - should hurt AER and AL the most as they concentrate on brand new planes.