This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Genesis Lease Could Be a Highflier

During periods of extreme market stress, cases of mistaken corporate identity are rife. Any company in an industry that has the barest similarities with a genuinely out-of-favor sector can find its shares under heavy distribution for no good reason. For my money, a relatively new industry -- the leasing of commercial jet aircraft -- is in that category right now.

For that reason, I want to call your attention to Genesis Lease (GLS), which is based in Ireland. I spoke at length with its chief executive last week, and believe I have a good grasp of the story.

For reasons unknown both to him and to me, the company has been lumped with companies that are in trouble because of the issuance or holding of asset-backed securities. This is surprising, considering that Genesis gathered just over $1 billion in its initial public offering earlier this year, and it also has a $1 billion credit line.

It uses this money to simply buy young, popular planes and then rents them out on long-term contacts to airlines around the world.

It has securitized part of its holdings, but the note is a throwback to bygone days of straightforward banking -- it has no lower, mezzanine or super-senior tranches. So far as I can tell, there is nothing spooky about it whatsoever.

Cleared for Takeoff

Genesis' cash flows are strong and unencumbered, it has the backing of General Electric's (GE) massive aircraft leasing program -- from which it was spun out last year -- and it does not have a high concentration of business in any one region of the world or any one airline.

1 of 4

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,749.60 +71.70 0.43%
S&P 500 1,959.53 +8.71 0.45%
NASDAQ 4,469.3990 +16.6070 0.37%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs