Why Shares of AerCap Holdings N.V. Popped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of aircraft financing company AerCap Holdings N.V. (NYSE: AER  ) jumped 12% in late trading after rumors emerged about an acquisition.

So what: Bloomberg is reporting that AIG (NYSE: AIG  ) is in talks to sell its jet-leasing finance business to AerCap Holdings. The unit was supposed to be sold to Chinese buyers, but AIG hasn't been able to close the deal. AerCap may need to bring in other partners to complete it. 

Now what: The AerCap acquisition is still only a rumor, and it's dangerous to buy on such rumors. AIG may also pursue an IPO, so it isn't as though AerCap is going to get a fire-sale price. I'd wait to see how this plays out, but I'm certainly not buying on the rumor today, because those gains can evaporate tomorrow if the deal doesn't turn out to be real.

Three stocks to own forever
Are you looking for long-term stock picks instead of short-term gambles? Our CEO, legendary investor Tom Gardner, has permitted us to reveal "The Motley Fool's 3 Stocks to Own Forever." These picks are free today! Just click here now to uncover the three companies we love. 

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2763322, ~/Articles/ArticleHandler.aspx, 4/19/2014 3:49:10 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...