Originally Posted by
fin 645
http://www.theglobeandmail.com/globe...ticle32336739/
(Sorry, Globe Subscribers only).
"Investors may have been unprepared for Air Canada’s recent liftoff. In 11 trading days since late September, it’s up by more than a third, hitting a new 52-week high of $12.70 late last week. The company has only provided an innocuous, but positive, announcement on debt restructuring during this time.
As it turns out, a fair amount of the gain may be coming because big investors, particularly in the United States, are warming to the Air Canada thesis."
Read this today too. It implied AC stock was undervalued compared to the US big three: UA, AA and DL. All of these airlines trade in the U$30++ range and have been up recently, and IIRC both AA and DL are paying quarterly dividends. AC has never paid a dividend (figure those who bought <$2 a share have received plenty of rreturns) and it isn't slated to, which may be detrimental to a wider acceptance in the US.
I think AC's best years for investors are behind them...cannot see the stock rising into the $20s any time soon, though I won't complain if the shares do take off again.