Back to before BS rumor levelsI think we are all looking too deep into this price swing. The SP was stagnant for a while around 2$ before the BA rumor came about. SP shot up to 2.75 during the rumor talks and now that the rumor was denied by BA, we are back at $2..
In hind sight, I feel like I should have seen this coming. The London City Airport certifiation was pushed back to June and no mention of an order was made at the Q4 earnings release. $2.50 would have been a good time to play the swings. I guess its always easy in hind sight.
I am still very positive about the rest of the year. I have to admit I'm a little scared about the Q1 earnings release but I think the rest of the year will surpass expectations. Production is accelerated based on the last few days to news. This has not been confirmed and is not priced in yet but I am confident that the 2017 delivery guidelines will be met. P&W will have those blades out as per schedule within 12 months. They have the funds to fix this issue and have a lot more to lose than the plane makers with this regard.
I am still hopeful for a large C-Series order this year. The London City Airport to North America capability is a huge deal for many airlines on both sides of the pond.
I am also wondering what Canada is waiting for with regards to Iran? Are we waiting for Brasil to step-up first? Absolutely ridiculous in my opinion..
Disclusure: I have been holding since January 2016 with an average PP of $1.24. Too large of a proportion of my portfolio but I can't seem to sell at any point. The turnaround potential is far too big in my view.
Any thoughts are welcome..
Bottoms.