Indigo Air (ADR) - NASDAQ: IAABY---Undiscovered bargain

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Non-Tech
Indigo Air (ADR) - NASDAQ: IAABY---Undiscovered bargain

An SI Board Since May 1998

Posts	SubjectMarks	Bans
11	0	0

Emcee: Jim Mac	Type: Unmoderated

Introduction Compact

Indigo Air looks way undervalued. Just announced 98Q1 EPS of $0.42 vs $0.28, up 50% on solid numbers, with trailing P/E of less than 10 now, with good prospects for future.

Indigo buys aircraft from airlines around the world, then leases them back, a growing trend. Indigo also remarkets aircraft. Aircraft lease portfolio now 25 with a dozen airlines in a dozen countries, and several more leases beginning this Q.

Why so undervalued? Just got listed on NASDAQ in April. BT Alex Brown (one of the underwriters, along with Salomon Smith Barney) just initiated a "strong buy" rating on Friday 5/15, the day after 98Q1 earnings came out.

Looks undiscovered, and a good deal. Could be trading now for 15 - 20 times trailing EPS of $1.37+, putting fair value now up 50% - 100% to $21 - $27+ (it's currently at $14+).

Someone please tell me if I'm wrong.

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Reply	Message Preview	From	Recs	Posted
11	For up to date news and financial info, check out IAABY's website: www.ind	Boyd Hinds	-	10/8/1998
10	I came across this stock about 2 weeks ago, and started to nibble a bit yesterd	Boyd Hinds	-	10/8/1998
9	Jim, Thanks for telling me WLFC. I usually choose to short another stock in th	Albert Mou	-	7/31/1998
8	I don't know. Maybe there were some exercised warrants or options.	Jim Mac	-	6/22/1998
7	Jim, Thank you for info. A bit confused on the following: > keep in mind t	Albert Mou	-	6/22/1998
6	Another aircraft equipment leasing company I know is Willis Lease Finance (NASD	Jim Mac	-	6/19/1998
5	Jim, I am scratching my head for this stock continuingly going downward. Can y	Albert Mou	-	6/18/1998
4	Thanks. IAABY's looking pretty tasty near $11. If they do indeed double t	Jim Mac	-	6/12/1998
3	IA in a nutshell: pathfinder.com They do not have many employees, yet I would	TheSlowLane	-	6/11/1998
2	This stock was recommended to me recently by a value-oriented money manager. O	TheSlowLane	-	6/11/1998
1	Book value approaching $8 after $41M IPO.	Jim Mac	-	5/18/1998

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