RE:RE:RE:key technical support levelFair point thinkyourmoney. my rational is usually derived from a value perspective as well as potential growth. The 2020 average EPS estimate is 3.68 which would result in 36.00 share price at 10X earnings. The earnings will come in lower due the virus, this is a safe guess I believe but I obviously don’t know how low. What ever level they come in at should be temporary and therefore I would expect a rebound at some point as things normalize. The addition of air transat will add revenue and more eps which should translate into a higher share price in 2021.
If the virus spreads and travel comes to a grinding halt then all bets are off, all airlines will grow their debt level and either close up shop or have to deal with share prices that are a fraction of what they are now. I will be a buyer if the stock falls further, there is panic out there right now and people might not be thinking rationally. I’ll wait for more data before buying but I am looking to buy.