Per another installment of the precog feature for Activist Strategy for identifying stocks likely to be targeted by activists or in need of an activist, we're focusing on the airline parts industry. Get this piece and all that we're doing with Activist Strategy with a two-week free trial. Here's an excerpt:
In our quest to find stocks worthy of an activist intervention, we're going back to the airline thesis this week. Last week it was retail, with Bed Bath & Beyond being the focus - as it now has a key private equity taking a stake in the company. But as you know, we’ve had an affinity for the airline space of late. This includes the focus on Japan's IHI Corp - which is being targeted by Dan Loeb, and even Rolls-Royce - which is an airline engine maker in need of an activist. In any case, here's the latest installment of precog, with a look at an airline parts maker.
In the worst case, there’s still lower margin programs that could be dumped. Along with that, capital deployment should be a focus for any activist - including buybacks and dividends - were given the visibility into its business and balance sheet, there's a large deployable opportunity for shareholder returns.