June 6, 2008

AAR Corporation: Unloved and Undervalued

Two articles have been written about AAR Corporation (AIR) over the past two days at Seeking Alpha.

The first article states that the book value of the company is $14.57 a share, which is only $4.00 below the current trading price. The author argues that the stock could double and still be undervalued. AAR is a mature company that provides a niche service to the airline industry.

The second article performs a financial analysis on the stock with the intention of buying options on the stock. The author gives a twelve month price target of $33.75. This seems to agree with the first article when it said that the stock could value and still be undervalued.

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