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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (73987)	10/16/2023 3:50:43 PM
From: JohnyP	Read Replies (1) of 78702

If I wanted to get in the field I would go for AER. As long as air travel remains high, or even if it contracts slightly from here, they will keep leasing their planes and getting paid well for that. They trade at a P/B of 0.8 and a PE of 8. Also at the end of 2021 they bought the GE Capital Aviation department. They are selling the planes that they got from that acquisition 25% higher than their book value and they use the proceeds to buy back their AER shares at 80%of book value! Now that is an excellent use of capital by management. I haven't bought into them yet, because I expect a big recession with inflation and I think I will be able to get them on a much lower price (the stock had tanked in 2009). Their business model is sound though. FWIW I am heavy on oil and gold mining stocks in the high inflationary environment that I expect. My most recent acquisition a couple of weeks back was PBRA which pays a 25% dividend. I think the worries about the left government in Brazil are way overblown and like the huge trade surpluses that Brazil is generating. They have low inflation also there and started lowering the interest rates recently.

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