27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
Barclays commented on aircraft leasing Thursday. The firm remained “optimistic” and gave its preferred names in the space.
Analyst David E. Fintzen felt the overall first quarter results “saw less focus on Russia risks, and more on currency.”
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A strong dollar had been encouraging aircraft sales while “lower fuel has added a bid to mid-age aircraft," which Fintzen thought would benefit the leasing companies "as they are better sellers of older aircraft.”
Below are Fintzen’s two preferred names in aircraft leasing along with rating and price targets.
Aircastle Limited (NYSE: AYR) - Overweight, $28 price target
Fintzen believed Aircastle’s “differentiated approach as a value investor in aircraft assets as well as its attractive dividend yield” were underappreciated by the market.
The analyst also expected the company to “generate significant free cash flows that could translate into free cash flow to equity that further drives shareholder value.”
The company’s recent earnings beat was attributed to lower interest and operating expenses while 2015 seemed to be “tracking better as the company finds opportunities to grow its asset base, while also finding improved opportunities on the sell-side,” according to Fintzen.
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Aircastle was expected to make $1 billion in acquisitions during 2015 and could make more if conditions warrant.
The firm increased Aircastle FY 2015 EPS estimates from $2.15 to $2.25.
Aircastle Limited recently traded at $25.17, down 0.24 percent.
Air Lease Corp (NYSE: AL) - Overweight, $45 price target
Fintzen thought Air Lease was “well positioned within an industry that is exhibiting improving fundamentals and sentiment.”
Both top and bottom line growth were expected in coming years that would be above its peers while its relatively modest dividend signaled “a strong message of confidence and dedication to improve sponsorship,” in Fintzen’s view.
After its recent earnings beat on better revenue and lower costs, the company’s management “reaffirmed continuing strength in global air travel demand thanks to growing middle-class formations and traffic stimulation from LCCs.”
Fintzen added that air travel in China had avoided the slowdown seen in the broader economy while Blackbird Capital had raised over $500 million in equity capital and was on track to reach $2 billion by the end of 2016.
The firm increased Air Lease Corp Fiscal 2015 EPS estimates from $2.80 to $2.85.
Air Lease Corp recently traded at $39.95, down 0.65 percent.
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.