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Bullboard - Stock Discussion Forum Air Canada T.AC

Alternate Symbol(s):  ACDVF

Industrials Airlines
Air Canada is an airline company. The Company is a provider of scheduled passenger services in the Canadian market, the Canada-United States (U.S.) transborder market and the international market to and from Canada. It provides scheduled service directly to more than 180 airports in Canada, the United States and internationally on six continents. The Company’s Aeroplan program is Canada's... see more

TSX:AC - Post Discussion

Air Canada > US up AC down
View:
Post by lb1temporary on May 27, 2020 9:40am

US up AC down

US airlines are up 8-10 % 

AC is down  6%

The message from Air Canada management is not positive.

Hoping that the bottom is near.

Time to buy the bottom ?.

Maybe.
Comment by logicandinertia on May 27, 2020 9:51am
I think the gyrations this AM pertain more to the dynamics around this deal and the fact it is marketed and contains a convert (hence the shorting of the common).    the value of the common will ultimately be the residual of the duration of the cash burn and the margin profile of AC at the other end of this (2021/2022).   I personally think the equity value has a great chance ...more  
Comment by Starsearcher80 on May 27, 2020 10:48am
I have a few questions surrounding some of the fun and games that the Instituational side can play. 1) So let's say a given institution signs up for the common shares, say a million shares.  So they can then short on the open market for whatever they can drive the price down to, knowing at a certain point they can't drive it down further because the open market will see a price too ...more  
Comment by logicandinertia on May 27, 2020 11:05am
Correct. An account who may be short can play on the equity deal to cover their short lower.  In a hot deal, a good banker would only give fills to those they knew were going long.  Some companies tell the bankers they don't want hedge funds in the buying syndicate for this reason.  But buying a deal to cover a short happens all the time.  as for the convert, the reason ...more  
Air Canada