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ATSG - Air Transport Services


Smazz

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I have been in Atsg for years and love it. I haven't followed this board but were people really contemplating a buyout by amzn? To me the shares were taken to ensure adequate plane supply... why would you even want to exit as well? The multiple and FCF is reasonable to say the least and they have done an amazing job of driving consistent growth in cash from operations by investing our money in high ROIC projects. I am really curious why you would want to exit ?

 

It wouldn't take you long to read the history--there hasn't been much activity about this company on here for years.  And I wouldn't say that "people" were contemplating it; it was purely my own speculation.

 

To me ATSG seems fairly valued, and this is still a cyclical industry.  I get angsty about this every so often as it makes up the vast majority of my taxable account.  I probably won't actually do anything though.

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I'm in the same boat as rmtz. In the past with DHL, this was a very cyclical business. Combo lift less cyclical. So the big question for me is whether ATSG is now in a secular business largely e-commerce driven. If you look at AMZN gross merchandise or revenues over the last ten years, I don't think they saw a dip in 2008-09.

 

If so then yeah, hold it and enjoy the ride.

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  • 7 months later...

Looks like ATI renewed the combi contract with US Transportation Command

 

https://www.bizjournals.com/dayton/news/2018/01/22/wilmington-airline-lands-40-7m-government-contract.html

 

Also ABX Air one of 14 carriers awarded a large aircargo lift contract.  Actual amount of work depends on capacity, mostly on demand aircargo.

 

https://www.bizjournals.com/dayton/news/2018/01/03/wilmington-airline-to-compete-for-government.html

 

Ho hum.

 

e-commerce is a secular trend, planning to hold for a while.

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