Observations on Q3 Earnings DayAs Rouge 10 pointed out it was a pretty good day and earnings put to paper what happened in Q3 and what to look for going forward. Here is what I noted in the reaction.
1. Analysts and writers noted that "this was all baked into the market price. I gotta call BS on that one.
2. Morningside posts a very current oversight of most stocks several times per month which states what is the Fair Value Price of the stock. The publication yesterday stated that the Fair price for AC stock was $27.48. Current price yesterday represented a 16% discount to fair value. Today the stock was up 4% so to get to fair value it needs to go up another 12% = $3.30. After earnings day Morningside usually updates its analysis and Fair value for stocks so it will be interesting what the next publication identifies as the Fair Value Price.
3. On BNN they had a lengthy interview with Michael Rousseau. It was followed by some analyst named Stan Wong. That lasted less than 2 minutes I am sure because he knew nothing about the stock. I couldn't watch that level of failure for more than 30 seconds and put him on my ignore list.
4.On Globe and Mail they did not even note AC earnings. There were only 4 words...Air Canada stock Jumped. Later in they day there was a much bigger headline about the 800 workers who are laid off for not following vaccination guidelines. Nothing is easier than publishing a good bit of negative news that came out as a press release.
5. Through the day there were some big blocks being traded...10,000 or more. That's not a retail investor or an amateur short trader. That is professional money moving $250,000 worth of stock at a time.
6. The final thing I noted was that no publication noted the forward looking statements and projections that are very important in Q3 earnings reports. That is hugely good news and I do not think it is "hopeful" thinking. Let's see how this plays out.