FlyerTalk Forums - View Single Post - What drives Air Canada's stock price?
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Old Mar 5, 2014 | 6:04 am
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Speculation and Market/PR Hype. AC has been expert at snowing the media and analysts into projecting $12 highs. However, reality set in last month as the C$ dropped and weather affected some operations. Even with "record profits" and the restoration of its pension fund, this dropped the share price from about $10 to its current $5+. If fundamentals were considered in the market price, the share price wouldn't have dropped to half in a single month. BTW AC has never issued a dividend, either the new AC or the old one. And share price history of the original AC $8 offering saw it rise to about $16, though it generally hovered in the $10-$14 range before the CP takeover. The peak occurred during that battle when AC offered a buy-back of 60% of shares at $16 a share.
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