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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

Comment by Nordicoon Jun 28, 2024 3:54am
177 Views
Post# 36110234

RE:RE:How low it is (adjusted) ?

RE:RE:How low it is (adjusted) ?Good post (much like Temp's). I've doubled my AC position - which I started in Feb - over the past week, and my last lot of 2700 shares I purchased on Tuesday immediately after looking at the month's Short data (almost half of daily volume in June has been short-sales, leading up to this week). The shorts have turned this into a huge reverse-bubble, and I've been happy to load up before it 'bursts' over the coming months.

thinkyourmoney wrote: From this article and the "Overly Paralyzed" article, the concepts send my mind spinning with How Stupid a $17 valuation is for AC shares.  
CIBC outlines that Air Canada has lots of room to grow into its North American network.  In case you have not noticed our immigrants come here and there is no choice  from their families they left behind.  Our new people must go home to visit.  It is not an option.  Not just for Canadian immigration but those in the USA.  Asia it is opening up.  AC  has added new routes into BKK., SIN  and is about to restart YYZ to KIX non stops.  HKG, Australia and Korea out of YVR have never stopped.  Japan is just reopening.  That's a lot of destinations to restart.  When they finally get those 18 787-10s I do not know which airplanes they will be able to consider redundant....  And domestically, the Canadian comsumer has bankrupted another new generation of  airlines that can't make a locost airlines profitable.  This may mean Canadians need to rethink what they want...an airline that doesn't fly or one that isn't cheap.
For the share price things look really exciting.  I mean to get back to 2019 prices, everything else is the same except the number of shares.  If you buy back 100 million shares at $16, they could all be bought at a total cost of $1.6 billion dollars.  With FCF of 4 to 5 billion dollars,  (1 billion already in Q1) using some of that FCF  for share buy backs would be the first step to bring us back to 2019 price per share.  They would not need to touch the 10 Billion in cash and cash equivalents.  Then everything would be back at where it was in 2019  and eveyone will be very, very  happy and in great harmony.  I know it is not that simple but it is not any more rediculous that the current price even after Wednesday and today.
I also noted that 28% of AC shares sold short on Wednesday.  The mood of the market seems to be changing.
However, it is ironic that the "Overlly Paralyzed" article  sits on the daily analysts feed from CIBC IE just above the Moringside entry that is updated for a day or two ago but is the same nonsense valueing AC at $17 and saying it has no economic moat.  I don't think they have changed any substance to that article in months.  
The one reality is that when things get this skewed, prices will get in line with reality because there is no economic reason that it shouldn't.



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