ASLE - AerSale Stock: My Worst Investment Call Ever But I'm Sticking With It

2024-04-26 16:25:07 ET

Summary

• AerSale had a tough year in 2023, with earnings declining considerably and sales decreasing in certain segments.
• The company no longer quantifies its guidance, which may not appeal to investors.
• AerAware, the company's enhanced flight vision system, received certification, but has not secured a launch order yet, raising concerns about its commercialization phase.

In December 2023, I upgraded AerSale Corporation (ASLE) to a strong buy , and while many ratings have performed strongly for aerospace and defense names, my AerSale recommendation was a poor one as the stock lost more than half of its value since. I have already been clear that the sole reason for me to invest in AerSale has been its AerAware business. The other business is too lumpy and prone to macroeconomic factors for my taste. I did end up selling my AerSale shares, but that was to balance my overall cash and stock portfolio. So, I'm still interested in AerSale and in this report I will determine whether AerSale remains on my radar to buy shares again in the future....

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