Another tact as useful for the mind as it is the pocketbook is to begin researching outside of your power box. Assume the streak will end. What then? Will you have already rolled into some more conservative plays? An early idea I'm looking at in that vein is Aircastle AYR, a Connecticut company that acquires and leases commercial jet aircraft to passenger and cargo airlines worldwide. It aims to pay out 100% of its net income in cash dividends, which makes it sort of REIT in the sky. The company recently announced that it had entered into an agreement to purchase 38 aircraft for $1.6 billion through February 2009, a dozen of which are freighters. I like AYR as a play on global freight and because it can earn a lot of money by borrowing cheaply and buying and chartering wisely. Its fourth-quarter dividend beat expectations by 15%, amounting to 43.75 cents a share. Figure you can get up to 20% earnings growth and a dividend of around 6.2%. As I noted in another thread most of these guys recent secondary was snatched up by Fortress @ $33. A pullback to $34 something might make a real nice portfolio position.... ~ stoney
Dear Chanos this is in the correct forum it is not an outright stock pick. It is a look into the mind of the stonedinvestor's methodology which i think is important. More than give winner after winner I try to teach how I research and how I change my research as I go. This thread was to show that I'm thinking conservative with my second brain now and accumulating some basic ideas to rotate into. It is most certainly in the investing style/ market camp not stock pick. Yours In Stocks- ~stoney