During periods of sluggish economic activity, spotting segments of growth and commercial opportunity often can make the difference between an adequate return on equity, and a portfolio with decidedly less-impressive results. Further, due to the fact that air traffic growth should outpace global GDP growth in the immediate years ahead, aircraft leasing represents an opportunity, and in this category Genesis Lease is worth a review.

Genesis Lease (NYSE: GLS) is an aircraft-leasing company with worldwide operations and a blue chip list of customers. The company has a 15-year service agreement with General Electric (NYSE: GE) Commercial Aviation Services whereby GECAS will service GLS' leases so that Genesis can concentrate on growing its business.

Analysts like GLS' overall business model, plan to expand its lease fleet of 52 aircraft, favorable sector position, and pricing power. The Reuters F2007/F2008 EPS consensus estimates for GLS are $1.25/$1.39.

The risks? Rising capital costs would hurt GLS' results, as would an inability to refinance debt (no small consideration in today's unpredictable credit markets). Analysts are also watching GLS' aviation fuel costs.

The First Call mean rating for GLS is: Buy. [6 firms.] Mean 2008 target: $25.00. [high: $28, low: $21.]

Stock Analysis: Genesis Lease is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than 2 years should be rewarded from GLS' shares. Sell / Stop Loss if you were to purchase shares in this company: $8.

Disclosure: Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.