Originally Posted by
jerryhung
I surely didn't expect such rapid drop, given that the virus has been out and in the news for the LAST MONTH!! like people didn't care/notice? same for entire airline/cruise/hotel industry
$45, $43, $42, $40, $38, now $35
and tomorrow (futures -1.5%) even more?
Good thing I didn't buy that many, and will average down, but boy, wished we shorted instead
There are losses across the entire industry with every airline share losing value. AC has a strong business model and there has been share growth over a long period due to the strength of that model. It is likely that the stock will rebound. I am certainly going to dollar-cost average with the purchase of more shares once the markets settle a bit. Even with the Max grounding dragging on performance, AC had a solid year last year, and the company continues its transformation toward a sustainable and profitable model, much like the majority of the US legacy carriers (except maybe AA). Of course, I also wished I had shorted the stock, but I don't think the extent of the impact of the virus was apparent in late January. There may be further share price declines, especially if the virus continues to progress in Europe.