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Air Canada T.AC

Alternate Symbol(s):  ACDVF

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 premier travel loyalty program, where members can earn or redeem points on the airline partner network of 45 airlines, plus through a range of merchandise, hotel and car rental rewards. Its freight division, Air Canada Cargo, provides air freight lift and connectivity to hundreds of destinations across six continents using its passenger and freighter aircraft. Its Air Canada Vacations is a tour operator, which is engaged in developing, marketing, and distributing vacation travel packages in the outbound/inbound leisure travel market. Air Canada Rouge is Air Canada's leisure carrier.


TSX:AC - Post by User

Bullboard Posts
Comment by ERTguyon Nov 03, 2015 11:42pm
134 Views
Post# 24256231

RE:RE:RE:RE:RE:Current EPS estimates

RE:RE:RE:RE:RE:Current EPS estimatesI blocked this Damian guy long ago and I am still seeing his name come up.  I can only imagine the spewing of condescending verbal diarrhea that he must be flooding the board with.  However If you want to know the stock price for the day either watch the ticker, or Damian will just tell you.  

On another note, Consider that the market is already aware that RASM is weak going forward, and everything is factored in from a possible rate hike in december, to rising costs due to the weaker Canadian dollar.  However the Jet fuel is going to be an obvious offset, and when you consider that AC is outperforming Westjet on all metrics, I don't think you should be surprised if AC blows out this Q.  I was actually surprised the share price held up today after Westjet's conference call.  Westjet reported some pretty heavy domestic capacity increases today for 2016 on the call which actually made me a little weary considering the small GDP projections for 2015 in Canada.  This stock also has a history of going deep into red based on Westjet's outlook during their conference calls.  Remember that Westjet missed on Q3 expectations last year while AC beat.  This is AC's strongest Q and has a huge tailwind from Jet fuel. Westjet is hedged, AC isn't.   

Also keep in mind that AC is commanding the market, and it's main hub is in a market that will only get busier.   You will also note Westjet's fare index had to drop 11% last Q while AC's only dropped 5%.  AC has a cost advantage with rouge over westjet, so it's no surprise Nuttall says AC is outperforming.  

So go long or go home.  The airlines in the U.S. that are outperforming are getting back to their 52 week highs.  IMO it's just a matter of time before AC does the same.  It may not go up Thursday, but how long can a downtrend last when you have a company that's commanding the market it's in?  The stock is just ridiculously undervalued.   Imagine if this stock price fell to create a P/E of near 2?  Right now it's at 2.8 times forward P/E which is just absurd, especially when the market sees the earnings power out of Q3.  Keep in mind Scotiabank's downgrade in August was due to their outlook on the price of Oil rising.  This just hasn't happened.  
Bullboard Posts