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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 Koopmanon Feb 28, 2017 9:17pm
158 Views
Post# 25909470

RE:Will crude slide?

RE:Will crude slide?
Dbutch 1976: While crude prices certainly will limit the upside, there is more to it with AC. It is consistently trading at a lower multiple than almost all major airlines. At first I thought it was the "Canadian" issue (which includes the lack of being on US investors' radars, the problem with taxes, labor unions, etc.) but I think that is only a small part of it - just look at WestJet for example (almost double the P/E of AC). I think a big (the biggest) issue is the debt plus... something. I still don't know what the dark matter "something" is and that is frustrating. Maybe its just inertia...? At any rate this sucker, er, "investor", is holding on until I find out what the dark matter is or until I make a good return on this stock. It still seems to be an awesome value to me. By the way, be careful about your hypothesis on crude: I've lost a lot of money thinking the same thing. Remember that the glut of crude that we have, has been building for years. So to suddenly think that the system is efficient and will automatically correct, is dangerous. In fact, we've worked through a significant amount of the glut and all you need is a Trumpian war or even Trumpian sabre rattling to start cranking the prices again!
Bullboard Posts