Originally Posted by
Shareholder
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.
Let's look at my favorite number: the P/E ratio
AAL: 3.77
DAL: 6.51
UAL: 5.72
TSE:AC: 6.07
Either AA is undervalued, or DL and AC are overvalued.
I suppose the third option is that DL/AC are expected to suddenly start making a crapload more money. But that seems less likely.