Middle Coast Investing, an investment advisor firm, released its second-quarter investor letter. A copy of the letter can be downloaded here. It was a good and active quarter for the firm. The portfolio’s price to earnings for the trailing 12 months (TTM) was 20.8. Cash and equivalents accounted for 13.4% of the portfolio at the end of the quarter, with an estimated average yield of 3.9%. This compares to 14.7% of the portfolio and a 3.9% yield at the end of Q1. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Middle Coast Investing highlighted stocks like Gogo Inc. (NASDAQ:GOGO), in the second quarter 2024 investor letter. Gogo Inc. (NASDAQ:GOGO) provides broadband connectivity services to the aviation industry. The one-month return of Gogo Inc. (NASDAQ:GOGO) was -2.43%, and its shares lost 46.90% of their value over the last 52 weeks. On July 15, 2024, Gogo Inc. (NASDAQ:GOGO) stock closed at $9.25 per share with a market capitalization of $1.176 billion.
Middle Coast Investing stated the following regarding Gogo Inc. (NASDAQ:GOGO) in its Q2 2024 investor letter:
“Gogo Inc. (NASDAQ:GOGO) sells in-flight wi-fi services, which makes it sound like a similar story to Astronics, but that is just coincidental. Instead, Gogo focuses on the business aviation market, so it’s less tied to the aerospace backlog. Its current business and balance sheet are much healthier than Astronics.
And yet, the story feels riskier to me, because it hinges on Gogo successfully launching its 5G and low earth satellite (named Galileo) products. Gogo has especially had trouble launching 5G, with habitual delays on the roll out. If it manages to successfully roll these out this year and early next, its free cash flow should go up a lot. If it doesn’t, it is vulnerable to competition from Spacelink. It feels a little too close to a binary situation for me to make it a big position, but we may add more to the position over time.”
A high-speed internet connection providing fast data rates to customers.
Gogo Inc. (NASDAQ:GOGO) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held Gogo Inc. (NASDAQ:GOGO) at the end of the first quarter which was 20 in the previous quarter. The first quarter revenue of Gogo Inc. (NASDAQ:GOGO) was up 6% year-over-year (see the details here). While we acknowledge the potential of Gogo Inc. (NASDAQ:GOGO) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Gogo Inc. (NASDAQ:GOGO) and shared list of stocks picked by analysts for an aggressive stock portfolio. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
