RE:RE:Is Air Canada overvalued??? you are a year too late to show up on the board with this assessment. Yours truly did this when the share price was $27+
Annick2020 wrote:
Yes, 110% Overvalued! It's been overvalued for the longest time and it is slowly but surely falling to its fair share price. Fares haven't increased contrary to what you are saying. I check fares on a regular basis as I fly quite frequently. The international flights have increases slightly, but then again, there's competition to go with besides ac. Within Canada, smaller cheaper airlines have now entered the Canadian market, although 1 subsidary each for the 2 big airlines. The other smaller airlines have now entered the airline market and these big players will have to be competitive enough to stay in the game. So you are wrong on all counts. Fuel is slowly falling and will continue to do so. As for flight frequency, it's back to school and back to work, nobody has time to vacation now (much less the means to travel) Interest rates hike have just been announced. More people will be losing their homes. Cost of living has skyrocketed. Nobody has discretionary play money as everyone is watching the nickels. Maybe people may fly during the winter holidays, but nobody will be leaving the country until the quarantine/testing/app rules are scrapped. Guaranteed! Time to sell. Buy back later if you're adament at owning ac at these prices. Remember though, year end sell offs are just a couple of months away. The airline industry is not recovering for at least a couple of years down the road.