Grupo Aeroportuario Pacifico (PAC-N)

ADR. Has concession with 32 year left in the lease. He likes the stock even though there were weather problems at their airports. Passenger growth 5% this year. Attractive dividend. Would not expect the run we had this year, next year.

Likes this a lot. Airports are a very nice, defensive business, in the sense that you are not going to get much competition. There are 3 publicly listed Mexican airports stocks, all of which are available through an ADR. Has always preferred this one because they have the best overall asset mix, and are not too dependent on any one airport. Typically when looking at an airport play, the amount of leverage would be immense at 5 or 8 times cash flow. This one is almost debt free. Great volume flow in terms of passenger traffic. Very attractive dividend yield of 5.4%. Getting to fair value levels now, and doesn’t offer the outsize returns that it had 9-10 months ago.