We are going to add to our group of stocks (portfolio) this company Air Lease. It is a holding in both investment clubs. We have bought and added to this holding four times since September of 2016 in the Chickasha group. It has been stock pick of the month for three months.n
Why do we like this company?
1. It is a relatively new company with six years of history at above 30% growth in sales and earnings per share.
2. They have 267 aircraft, 85 customers including many names you know and are in 51countries.
3. They lease planes.
4. The price is in the low of the buy zone.
5. They are the only company of their kind. Virtually no competition.
6. They have lots of debt but debt goes with owning planes. They are leveraged strategically.
We will buy 100 shares today @ $37.85.
AL cost basis $3,792.00 value is $3,803.00 = $11.00
DRQ cost basis $6,547.00 value is $5,232.00 = - $1,285.00
DNKN cost basis $5,273.00 value is $5,577.00 = $301.00
CGI cost basis $769.00 value is $455.00 = - $307.00
SRCL cost basis $7,719 value is $8,641.00= +$916.00
LULU cost basis $6,855.00 value is $5,288.00 = -$1576.00
GNTX cost $1,856.00 current $2,071.00 = +217.00
BNS paid $5,408.00 value $5,783.00 = +$382.00
TSCO paid $6,667 value $6,548.00 = - $119.00
KMX paid $5,444 value $6,035.00 = + $596.00
LCI paid $3,238 value $2,455.00 = - $770.50
JLL paid $9,699 value $11,275.00 = + $1,531.00
We took a major hit when drilquip reported this quarter and gave negative guidance for the rest of 2017. We have gone from being up over $3,000 to having a loss of $163.50. That loss is offset by some dividend payments but of course we are disappointed in the short term. At this point in the strategy I always take a look at the losers to make sure we are in the zone and prospects for the future are still acceptable. We will watch drilquip and LuLu closely but both still have great numbers. Some would argue to get out of oil and retail. I am contrarian enough to believe they are still good choices. We will see. CGI was our speculation but so cheap it is worth waiting to see what happens to NAFTA. They truck cars to and from Mexico. Could be a President Trump loss.
