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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
Post by ERTguyon Nov 07, 2017 2:04pm
190 Views
Post# 26919640

RE: stock decline

RE: stock declineIt shouldn’t really be a mystery at this point why the stock is dropping.  It’s ran 100% in 4 months which is very significant for an airline to say the least.    With oil entering a new bull market and the USD strengthening going into Q4/Q1 it’s not surprising to see institional selling into Q4 and I expect this will continue throughout the balance of they year as the profit taking continues.   That combined with no catalysts to look forward to near term make this an obvious play for profit taking.  I’m not really sure how much this will sell off but I can honestly say I probably won’t be looking at this play again until late winter/early spring as AC enters their busy season.  Yes the P/E is undervalued vs. Peers however the gap closure to peers will be far more gradual after the price correction.   Personally I’m bullish on oil so it’s hard to justify being bullish on AC near term in the same sentence.    Oil prices will be great for the Canadian economy however we aren’t seeing the trend of the CAD rising with Oil prices, plus there will be a lag period between high oil prices as it relates to increase in jobs/GDP to further stimulate airline growth.  
Bullboard Posts