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The best stocks to buy since 1993

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Avation - A buy to let investor for planes

January 2014

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • AVAP
  • Price:
  • 129p
Avation, an aircraft leasing business, is one of those businesses where you need to believe - believe in the big picture growth of global tourism and also the power of compounding. The company leases mostly bog standard ATR72 600 aircraft (the type generally used to fly regional routes) to commercial passenger airlines, many of whom are too cash strapped to own them themselves.Think of Avation in the same way you might invest in buy-to-let properties. You don't buy properties for cash outright but borrow from the banks with 90% loan-to-value deals and rents are so high that you get 60% of the capital back in just five years. If you are on a repayment mortgage, you then release your original equity and regear your property portfoli ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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