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Air T, Inc. (AIRT) is “One to Watch”

Air T, Inc. is a leading provider of cargo services to the overnight express delivery industry and also manufactures and sells on-the-ground support services, including aircraft, de-icing and decontamination products. The North Carolina-based company, whose biggest customer is FedEx Corp., reports fiscal first-quarter earnings today, Aug. 12, 2008. For the fiscal year that ended March 31, the company reported a 36% surge in profits. Most of the company’s revenue is generated from operations in the eastern half of the U.S., the Caribbean and South America.

Air T also counts among its clients, the U.S. Air Force and Navy. In fact, the company won a contract for almost $15 million from the Air Force earlier this year. Of note to potential shareholders, Air T boosted its dividend in June to 30 cents a share and more than 25 percent of its shares are held by 19 different institutions. Six of those institutions reported adding to their stakes in Air T during the most recent filing period. Major shareholders include Citigroup, Goldman Sachs and UBS.

The 28-year old Air T actually has no sell-side analyst coverage, which could mean the company is flying under Wall Street’s radar, and with a price-to-earnings ratio of about eight, Air T shares could be considered inexpensive at these levels. For traders, it appears Air T continues to find support around the $9.50 trading area and have risen about 22 percent since May.

Air T appears to be headed in the right direction after three consecutive years of profit and sales increases, fitting the bill of a stock to watch.

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