You don’t just listen to a company’s conference call to learn about the quarter. Conference calls can be just as important in learning about the company’s derivatives – its other businesses. As Cramer listened to the AIG call, he was struck by the realization that the aircraft leasing was one of the components of AIG’s overall business that was simply on fire. So he went out to find the best pure play in aircraft leasing, and he came up with Genesis Lease GLS.
He got the CEO of Genesis Lease , John McMahon, on the line to find out more about a company – and a business - that flies under most peoples’ radars.
The big question for a company like Genesis is the same one people ask themselves when they’re shopping for a car: why lease when you can buy?
Well, the airlines are in a cash flow business and they simply can’t all afford to buy planes, McMahon says. That’s where his company comes in.
Genesis acquired its 41 planes from GE, which has an 11% stake in the company. But McMahon says his company also has a pipeline with some airlines where Genesis acquires aircraft that the airlines contracted to buy from Boeing and Airbus. Genesis will purchase the planes and then lease them back to the airlines on a long-term basis, he says.
Jim's charitable trust owns AIG. GE is the parent company of CNBC.