RE:RE:RE:Bankruptcy: Wishful thinking Vs FactsIn case you were not able to read the post completely :)
Here is the excerpt from last post on what I think on improving cash flows based on higher revenue. Revenue will increase (though slow growth) but profitability will be higher compared to same revenue pre pandemic (2010 -2019 years).
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"My analysis:
Projected Q3 cash burn is at projected 35% capacity (of Q3 2019). But it is clear from data that they are running at 60% capacity instead. They will not only be cash burn neutral already and might as well be positive in Sept and Q4 and going forward. It means, the liquidity levels will stablize first and then begin to increase.
Bankruptcy is a wishful thinking. This fear is what shorters cashed out in March 2020 and many people not understanding the AC business model took the bait. And this Q is the last Q where shorter have any chance of creating fear in investor's mind, because once the Q3 results are out, they won't be able to influence. Facts will be out in the market.
Now, what will they AC with that much cash? Should they pay off the debt or .....I suggest don't worry about debt (low cost debt) and focus on adding more value. Debt can be paid off anytime. Oh yes, Govt. money not needed.
COVID: Double vaccinations are working. Most of the cases in hospitals are unvaccinated. E.g. In Alberta 93% of the hospitalizations are full unvaccinated. In ON, people still wear masks till more are vaccinated and it works beautifully. AB, welcome to the club. And guess what, only fully vaccinated travel via air. Vaccinated are no longer the problems. You can't shut them down anymore :).
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