Air Canada T.AC

losing patience

[marcrobert]

can't seem to go up, how many more quarters of cr*p are needed. all the exciting analyst targets in the high 20s and low 30s, markets at all time highs, travel still strong, yet nothing going on, 

when in gd.,s name can this stock start moving toward the targets (tagets for 2024 !)

story is going to change by the time ac , weak consumer rumblings, st market correction likely

i cant see why the future will be better for ac than now, travel demand will normalize like everything else post covid, just a matter of time, so the clock is ticking for ac to suddenly pop to mid 20s?

opportunity cost of owning this is high

[marcrobert]

short interest 12%, how does this compare over time?

[Rob8043]

This post has been removed in accordance with Community Policy

[thinkyourmoney]

Opportunity costs are possibly and probably the lowest they have been since Covid.  Here are a few dynamics to ponder. I addressed in an earlier post that Air Canada dodged a bullet when it pulled back from a deal to buy TRZ several years ago.  TRZ is still buried in debt with a substantial percentage of their fleet grounded due to P&W engine flaws.  They are in debt.  

[Rouge10]

Agreed. FCF is the key. No amount of capex can be a problem if FCF is higher. AC is going to generate FCF year over year sustainably, allowing them to buying back shares and thus generating  consistently higher FCF/share. Their capex is all about improving margins (FCF) and revenue (EBITDA). Both metrics will improve leverage ratio, freeing up cash for further investments and rewarding

[Nordico]

The point where one becomes exceedingly frustrated over a longstanding mismatch between SP and fundamentals, is usually the point where one should increase their position instead of dumping. This same thing occurred with Bombardier over the year leading up to March 2024, but then suddenly the Street could no longer ignore the company's success and pushed the shareprice up 70% over three months

[Tempo1]

OK   but don't forget that Bombardier management adressed the problem and acted with 1- presentations to selected investors and 2- the investor's day (adressing the capex fears of the 2025-2030 period). For AC as already noted, management seem to be waiting a pilot agreement before acting.  I hope that they will act with significant moves.

[DrInvestor]

That is a ggod point. Management might not want the optic of a $30 share price and at the same time being viewed as nickel and diming its pilots. Hopefully an agreement is reached soon with the pilots.