RE:How low it is (adjusted) ?From this article and the "Overly Paralyzed" article, the concepts send my mind spinning with How Stupid a $17 valuation is for AC shares.
CIBC outlines that Air Canada has lots of room to grow into its North American network. In case you have not noticed our immigrants come here and there is no choice from their families they left behind. Our new people must go home to visit. It is not an option. Not just for Canadian immigration but those in the USA. Asia it is opening up. AC has added new routes into BKK., SIN and is about to restart YYZ to KIX non stops. HKG, Australia and Korea out of YVR have never stopped. Japan is just reopening. That's a lot of destinations to restart. When they finally get those 18 787-10s I do not know which airplanes they will be able to consider redundant.... And domestically, the Canadian comsumer has bankrupted another new generation of airlines that can't make a locost airlines profitable. This may mean Canadians need to rethink what they want...an airline that doesn't fly or one that isn't cheap.
For the share price things look really exciting. I mean to get back to 2019 prices, everything else is the same except the number of shares. If you buy back 100 million shares at $16, they could all be bought at a total cost of $1.6 billion dollars. With FCF of 4 to 5 billion dollars, (1 billion already in Q1) using some of that FCF for share buy backs would be the first step to bring us back to 2019 price per share. They would not need to touch the 10 Billion in cash and cash equivalents. Then everything would be back at where it was in 2019 and eveyone will be very, very happy and in great harmony. I know it is not that simple but it is not any more rediculous that the current price even after Wednesday and today.
I also noted that 28% of AC shares sold short on Wednesday. The mood of the market seems to be changing.
However, it is ironic that the "Overlly Paralyzed" article sits on the daily analysts feed from CIBC IE just above the Moringside entry that is updated for a day or two ago but is the same nonsense valueing AC at $17 and saying it has no economic moat. I don't think they have changed any substance to that article in months.
The one reality is that when things get this skewed, prices will get in line with reality because there is no economic reason that it shouldn't.