Best Income Companies To Invest In Right Now

Best Income Companies To Invest In Right Now: Aircastle Ltd (AYR)

Aircastle Limited (Aircastle), incorporated on October 29, 2004, is a global company that acquires, leases, and sells high-utility commercial jet aircraft to customers throughout the world. As of December 31, 2012, the Company's aircraft portfolio consisted of 159 aircraft that were leased to 69 lessees located in 36 countries. The Company manages its fleet through offices in the United States, Ireland and Singapore. The Company invests in aircraft that the Company places on operating or finances leases The Company also makes investments in other aviation assets, including debt investments secured by commercial jet aircraft. The Company operates in single segment being Aircraft leases. The Company owned 133 passenger aircraft, representing approximately 71% of the net book value of flight equipment, while its 26 freighter aircraft account for 29% of its portfolio value. Effective July 12, 2013, Marubeni Corp acquired a 15.25% interest in the Company.

The Comp any leases its aircraft on an operating lease basis. Under an operating lease, the Company retains the benefit, and bear the risk, of re-leasing and of the residual values of the aircraft upon expiration or early termination of the lease. Under the Company's leases, the lessees agree to lease the aircraft for a fixed term, although certain of its operating leases allow the lessee the option to extend the lease for an additional term or, in rare cases, terminate the lease prior to its expiration. During the year ended December 31, 2012, the Company's three customers, Martinair , including its affiliates, KLM, Transavia and Transavia France, U.S. Airways, Inc., and Hainan Airlines Company, accounted for 9%, 6% and 6% of the Company's revenues.

As of December 31, 2012, the Company had 19 aircraft having scheduled lease expirations in 2013 and the Company ! has lease or leases extension commitments for two of these aircraft. The remaining 17 aircraft with scheduled expiries in 2013. The Company entered into early termination! agreements for two Boeing Model 737-700 aircraft, one Airbus model A330-200 aircraft, one Boeing Model 767-300ER aircraft and one Airbus Model A319-100 aircraft, which the Company is marketing for sale or leases.

The Company competes with GE Commercial Aviation Services, International Lease Finance Corporation (ILFC), AerCap Holdings NV, Air Lease Corporation, Aviation Capital Group, CIT Aerospace, AWAS, SMBC Aviation Capital (formerly RBS Aviation Capital), BOC Aviation, FLY Leasing, Ltd., Avolon, Guggenheim Aviation Partners, Volito, Deucalion, Oak Hill Aviation and AerSale

Advisors' Opinion:

• [By Vera Yuan]

  We initiated a new position in Aircastle Ltd. (AYR), an aircraft leasing company with a flexible business model and a rational capital allocation philosophy. We took advantage of an opportunity to purchase shares in the heavily capitalized Georgia bank State Bank Financial Corp. (STBZ) as the depressed stock price reflected investors' lack of patience with a slower than expected pace of capital deployment. We like State Bank's management team led by Georgia banker Joe Evans. This management team has experience successfully building and selling other Georgia banks. We also received shares of transportation infrastructure company XPO Logistics, Inc. (XPO) as a result of its acquisition of holding Pacer International, Inc.

• [By Roberto Pedone]

  One commercial leasing player that insiders are active in here is Aircastle (AYR), which acquires, leases and sells high-utility commercial jet aircraft to passenger and cargo airlines throughout the world. Insiders are buying this stock into notable strength, since shares are up sharply by 52% in 2013.

  Aircastle has a market cap of $1.5 billion and an enterprise value of $4.8 billion. This stock trades at! a premiu! m valuation, with a trailing price-to-earnings of 124.68. This is not a cash-rich company, since the total cash position on its balance sheet is $238.15 million and its total debt is $3.48 billion. This stock currently sports a dividend yield of 4.2%.

  A director just bought 30,000 shares, or about $563,000 worth of stock, at $18.79 per share.

  From a technical perspective, AYR is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last five months, with shares moving higher from its low of $15.84 to its recent high of $19.50 a share. During that uptrend, shares of AYR have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of AYR within range of triggering a big breakout trade.

  If you're bullish on AYR, then I would look for long-biased trades as long as this stock is trending above its 50-day at $18.67 or above more support near $18, and then once it breaks out above its 52-week high at $19.50 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average volume of 430,032 shares. If that breakout hits soon, then AYR will set up to enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that breakout are $25 to $30 a share.

source from Top Stocks For 2015:http://www.topstocksblog.com/best-income-companies-to-invest-in-right-now-2.html