RE: AC MD&A - Q2**Sigh**......(I should have listened to my wife and stay off this site during my vaction)...:-)
a) ASM/RPM are up over Q2 for DOMESTIC routes per AC report. ASM/RPM are common metrics that measure performance for airlines and are strongly corelated to bottom line performance.
b) Sky has 13 planes - very few domestic routes RELATIVE to 122 planes for Chorus and 85 destinations.
c) INCREASED RATES to Chorus (per the quote from the AC MD&A) = INCREASED REVENUE to Chorus (INCREASED COST to AC)
d) Thus - one might INFER from ASM/RPM metrics and MD&A quote, that Chorus MIGHT surpass consensus EPS/FCPS estimates for Q2 - perhaps by a wide margin.
e) Shorts bet the price will go down. If there is a strong likelyhood the market will react to a strong Q2 figure from Chorus (similar to the 25% bump AC received for thier Q2 numbers today) - I presume shorts would want to cover thier current positions.
I may be wrong on all fronts- but that is the basis for investing - making calculated bets that more often than not - pay off.
Check - going to hand this forum back to you. I 've observed you are the primary voice on Chorus for this site - but very are heavy on opinion and light on analysis. I suspect you've been burned rather badly on Chorus which seems to drive your bearish commentary. I've tried to offer some analysis based on my past experience as a research associate from a previous brokerage house - but finding the discourse on this site "less than professional".
All the best.