RE:RE:Air Canada Bullboard a War ZonePre-Covid there were enough rational investors who understood Air Canada's accomplishments since 2010. Covid interrupted and there was a 4 year setback. But the major changes and the evolution of the new strategy continues. Its the creation of a Lifestyles, Finance and Travel Business with an airline and a powerful credt card loyalty program at its core. Generational investing is not about quick trades. Those who have accumulated a pile of shares will be rewarded. Some of you may remember Airlineinvestor101. He is still around lending expertise to discerning investors. He had shared a post about the North American Railway industry. An old industry, but again in recent years, new strategic thinking was used to turn them into gold. Most of the world's airlines are government subsidized entities. Air Canada broke away from that pack. Its a for-profit publicly traded company and a very succersful one. And as Calin had once said, its there to benefit its committed shareholders, customers and employees. Short term traders can leave. The same message is probably appropriate right now. Air Canada's post covid ascendency has begun.
thinkyourmoney wrote: Money is very rational. It works on numbers and in business numbers follow patterns to success and to failure. The concept of the stock market is that stock owners are supposed to be able to sort that out and reward sound financial management with the appropriate stock value. The TSX is a complete mess that way and that is why even our own pension plans will not invest there. I do not trust the Canadian investment industry at all. It does not analyze and then follow the numbers. It's about networking and collusion. They use numbers to support their own agenda whatever that may be.
Case in point is Air Canada stock in the present term. With a P/E ratio of 3.5 and a net debt ratio of 1:1 and half of a year's revenue sitting in Cash. The stock price should be much higher.
The ideology of the short game ideology supports its position that AC stock is junk in that it goes bankrupt always. This excuse has taken over from labelling AC a crown corporatation for 2 decades after it went public. In that time it has restructured once and that was because of a shotgun merger with failing CAIL. I should not have to remind the Canadian public that they have bankrupted every other airline in Canada at least once. It has finally been shared in the press lately that Canada cannot support lo-cost airlines.
Canada can support one international airline and one domestic airline. Any usurper to the position of being the international airline of Canada is on a fools errand. The latest published dreamer is Porter Airways that thinks linking up with Air Transat moves them into the adult wing of International Airlines.
The ideology of short sellers is that demand for airline stock splits into Air Canada and "not Air Canada". Nobody much notes when scores of airlines fail in Canada except Transat whose founder is the premier of Quebec. The nature of the short sellers is to use any nonsense lie to spook the herd into thinking Air Canada is going to strand them on the other side of the world with no way home and lose their investment on AC stock shares. They even argue that buying new airplanes will bury AC in a mountain of debt even when AC is sitting with 10 Billion dollars in cash. That buys a lot of freaking planes out right. The new planes use less fuel plus they carry 10% more passengers than the previous iteration of the 787 for example. The fuel saving plus the extra revenue from filling those extra 30 seats will pay for the airframe over the course of 25 years on its own. That is just good numbers and good business.
What we have then is shorts pasting the bulletin boards with stupid comments and fear mongering howling "the sky is fallinng...AC is going broke".
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You look at ACs current preformance and good business and follow the traditional indicators. Even do some reading about what is going on in business and what is going on in the world. Check with you new neighbors and ask them about how often they need to travel home to other continents and how they get there.
Right now AC is performing very well financially and is continuing to improve. One key is that the Aeroplan product is still growing. Should it double or triple in size the Free Cash will grow with it to pay for even more things like share buy backs and/or a dividend. With money, Thinks take Time. Wealth building is a process. You just do business right over and over again and don't stop doing it right.
It's all about the numbers. Follow the numbers and ignore the noise.