Air Canada T.AC

UAL & DAL up

[DrInvestor]

Hard to understand why AC is down today. UAL came out with promising numbers. Perhaps shorts' last attempt to bring us down.

[Tempo1]

My humble tough is the TD downgrade to 25$ (- 25% from 33$) tuesday didn't help. TD was one of the two most bullish brokers on AC (with CIBC). 

[Nordico]

The Street is nuts, and just giving shares away at this point (via short dumping, not organic selling). I just added yet another 2k shares @ 16.91, and another $6k worth of Jan 2025 calls. Now at 27k shares, and exposure to an additional 25k shares through call options.

[jjwilson]

Personally, wouldn't be buying any shares until the pilot contract is complete.  Too much uncertainty.

[Nordico]

So you prefer to buy high, not low. I see....

[jjwilson]

Well, you got me.  I didn't explain that very well - let me try again. I do think AC is undervalued at the $16-$17 range and any shares bought here have excellent potential however the looming labour issues suggests there will be opportunites for buying at a lower price soon.  I sold the last of my shares when it was above $20 a few months ago and expect to re-buy below the current

[Nordico]

Looks like your gamble paid off. Now to gauge whether today is the bottom or whether you'll get it cheaper one of these days this week.

[jjwilson]

As I said, not buying until Sept. 

[Nordico]

In a rational world, the pilots union should now be more willing to move closer to the company's side after this guidance update; they've been negotiating under the impression AC will continue its massive profit levels from 2023 ($1.71 Billion adjusted net income) when the reality is half that. I'm hopeful for a deal in August.

[wkrpradio]

Sadly the concept of a "rational world" goes out the window when the majority of union leaders embrace Marxist ideology. ALPA wants their members to be paid the same as the US carriers with the USD being converted into a CAD , which would be a wind fall for Canadian employees, because their cost of living is in CAD and not USD. 

[jjwilson]

"ALPA wants their members to be paid the same as the US carriers with the USD being converted into a CAD" This is not true.

[wkrpradio]

You are either ill informed or a dishonest person. 

[jjwilson]

Yup, one of us is ill informed or dishonest.