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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Tapcon who wrote (35595)	10/6/2009 11:48:09 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78753

WLFC. Yes, case can be made for the preferred even now. Maybe a better case than for the common. It's just that I have pfd shares bought back then at those prices, and while 9+% is good now and I've no intention of selling my stock (I'm watching to see if preferred stock falls so as to maybe buy more), now might be the top for the stock's appreciation. And it just seems that the aircraft leasing business is holding up okay (perhaps evidenced by recent consolidation among the players), so I decided to increase my exposure (increase my bet on the future by buying the common). I realize WLFC isn't primarily an aircraft lessor, but I am guessing it (the company and the stock) ought to do at least as well going forward as GLS & FLY, both of which I am also in for a few shares.

To: Tapcon who wrote (35595)	12/10/2009 5:02:44 PM
From: Paul Senior	Respond to of 78753

I'll reach up for more WLFC at current price. This is a thinly-traded stock with a big bid-ask spread. The stock is up in past couple of days after company announced it intends to buy back 30% of outstanding shares over the next three years. On the one hand, if this comes to pass, it may mean the float, 5M shares, and the outstanding shares, 9M shares, will be reduced enough to make the stock even more volatile. Otoh, the buybacks may serve to put a floor under the price of the stock. Again, I like the stock because the p/e is 5-6; the company's posted profits every year past ten; the roe is somewhere between 10-13% now, on a stated book value of $20.2. The stated book value has generally increased yearly (past ten years). The stock, dropping today to $13.39/sh, is at .66x stated bv. ==== If the company is buying back their common shares, it would seem to me they'd also want to call in their preferred. I looked, the yield's about 9%, the preferred can't be called until '11, and the call price ($10) is only a few cents away from the current preferred stock price ($9.90). I view this as meaning the preferred might be a safer bet now, a bet on the yield for a year or so, but no chance for a capital gain. I own the preferred, will not add, and will expect it to be called in '11.