Flying high in Mexico

Running airports in hot tourist areas south of the border might make Grupo Aeroportuario a profit center, too.

By Jim Van Meerten Dec 3, 2009 9:55AM
I've got some room in my Top Stocks Wall Street Survivor portfolio, so I used BarChart to screen for stocks trading more than 100,000 shares per day and sort for frequency.

After using my normal filtering process, I ended up with Grupo Aeroportuario (ASR). The company has concessions to manage and operate airports in hot southeastern parts of Mexico like Cancun and Cozumel. Very hot tourist areas with major air traffic from the U.S. and Europe.

ASR has hit 14 new highs in the past 20 trading sessions and in four of the most recent five days. There has been a 34.17% price appreciation in the past 65 days. It's hitting on all cylinders, with BarChart's technical indicators giving 13 out of 13 signals to buy for a 100% buy rating.

Wall Street seems to confirm the price momentum, with the analyst consensus that sales will increase 14.3% and EPS by 34.6% in the coming year. The seven analysts give four buy, two hold and one sell recommendations. The sell rating is so old I can't even find it listed, but it's still in the data feed.

On other sites, Mark's checklist on Wall Street Survivor rates the stock with a Survivor Sentiment rating 5/5 and a fundamental rating of 4/5. Motley Fool CAPS members confirm with a vote that the stock will outperform the market 240 to 10 and the All Stars vote of 94 to 2. The Wall Street columnists Motley Fool follows are split 1 to 1.

This stock passes my screening process:
  • The stock is hitting new highs and has a BarChart buy rating of at least 80%
  • If the stock has Wall Street following none of the major brokerage firms have negative reports with sell signals
  • Other stock rating sites agree with my first 2 tests

Recommendation: I'm adding Grupo Aeroportuario to my Wall Street Survivor portfolio around 54 and would sell if it failed to trade above 45.

 

By the way, the person who thought the stock will underperform was Jim Cramer, and the stock has had a 47.26% price increase since he gave his sell signal.


I mentor the senior economics class at Charlotte Latin School in a stock market competition with other schools across the U.S. Every semester, I give them the same homework assignment. Watch Mad Money and/or Fast Money with your parents and discuss whether this is valuable financial information or just TV entertainment. This week they will be making their oral presentations and giving me their opinions, and I'd like to hear yours.

 

Disclosure: I held no positions in Grupo Aeroportuario at the time of publication

 

Jim Van Meerten is an investor who writes on financial matters here and on Financial Tides. Please leave a comment below or email FinancialTides@gmail.com

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