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What drives Air Canada's stock price?

What drives Air Canada's stock price?

Old Aug 1, 2017, 2:30 pm
  #286  
 
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I'm wondering why the bad margin. Broad strokes.

Are the a320(+/-1) all old and needing a super high level maintenance? And this quarter they lucked out not needing parts? Or have they been aircraft-of-theseus's, so all new, except for the airframe proper?

Or just a attribute of a big country and with more small outports domestic and internationally, with a still a larger (but low population) central core, than just about anyone else?
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Old Aug 1, 2017, 6:39 pm
  #287  
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Air Canada management must be laughing at us Flyertalkers.

Planes are full, company's making money, stockholders are happy (and thus corporate employees in the ivory tower are also happy).

Win win for everyone, except for us.

Joke's on us then.
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Old Aug 1, 2017, 8:22 pm
  #288  
 
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Originally Posted by longtimeflyin
Air Canada management must be laughing at us Flyertalkers.

Planes are full, company's making money, stockholders are happy (and thus corporate employees in the ivory tower are also happy).

Win win for everyone, except for us.

Joke's on us then.
If you also hold 10,000 common shares of Air Canada stocks, most of the dollars you put on flying Air Canada are likely back to your pocket, and everything works out just fine.
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Old Aug 1, 2017, 8:37 pm
  #289  
 
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Going to buy some cheapo lotto puts EXP Jan 2019.
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Old Aug 1, 2017, 9:08 pm
  #290  
 
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Originally Posted by Jumper Jack
Going to buy some cheapo lotto puts EXP Jan 2019.
Nice.

That's probably as close to lotto as you can get in the finance word.

Actual respect for being 100% truthful and honest about your investment strategy ^

So here's my free advice. Take it fwiw (ie. just a random FT post).


There is a lot of merit in the concerns that many express with regards to the long term outlook of the airline. It is undeniable that the environment may soon shift and be even more hostile to the airline industry than it has been in the last couple of years; a huge downwards pressure on revenue and uptick in cost could quickly flip the script for many carriers.

Nevertheless, don't forget that just like "good waves" never last, "down waves" can also be toughed out. Just look at the Canadian housing market. I know more than one financier and economist with half a brain that had some serious doubt we'd make it through even 2013. Yet here we are with an interest rate hike and major GDP growth figures.


As much as there are nut jobs out there, you will also find many great thinkers and problems solvers that set up contingency plans that save the ship when the storm rips the sail.


The worse someone could do in a situation like this one (the current AC stock rise), is assume that AC is run by the same team that drove the corp/crown corp to the bring of bankruptcy. It would be as foolish to think that "AC is bound to .... up" as it is to think that "AC is full of superstars that will raise the stock to $50/share".


But then again... the market can be irrational... and for a very long time. Sometimes long enough to convince me I'm wrong, just to find out I joined the laggards.



Oh. And as for your investment. Don't forget AC has a largely paid for (correct me if I'm wrong) A320 fleet that can be parked tomorrow, and delivery of the 737-max scheduled mostly for 2019.


Enjoy.
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Old Aug 1, 2017, 11:53 pm
  #291  
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Originally Posted by Jumper Jack
Going to buy some cheapo lotto puts EXP Jan 2019.
Teach me how, and I'll buy some too. I think my optionshouse account was just migrated to etrade or something. Can't keep track.
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Old Aug 2, 2017, 5:07 am
  #292  
 
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Originally Posted by SparseFlyer
Nice.

That's probably as close to lotto as you can get in the finance word.

Actual respect for being 100% truthful and honest about your investment strategy ^

So here's my free advice. Take it fwiw (ie. just a random FT post).


There is a lot of merit in the concerns that many express with regards to the long term outlook of the airline. It is undeniable that the environment may soon shift and be even more hostile to the airline industry than it has been in the last couple of years; a huge downwards pressure on revenue and uptick in cost could quickly flip the script for many carriers.

Nevertheless, don't forget that just like "good waves" never last, "down waves" can also be toughed out. Just look at the Canadian housing market. I know more than one financier and economist with half a brain that had some serious doubt we'd make it through even 2013. Yet here we are with an interest rate hike and major GDP growth figures.


As much as there are nut jobs out there, you will also find many great thinkers and problems solvers that set up contingency plans that save the ship when the storm rips the sail.


The worse someone could do in a situation like this one (the current AC stock rise), is assume that AC is run by the same team that drove the corp/crown corp to the bring of bankruptcy. It would be as foolish to think that "AC is bound to .... up" as it is to think that "AC is full of superstars that will raise the stock to $50/share".


But then again... the market can be irrational... and for a very long time. Sometimes long enough to convince me I'm wrong, just to find out I joined the laggards.



Oh. And as for your investment. Don't forget AC has a largely paid for (correct me if I'm wrong) A320 fleet that can be parked tomorrow, and delivery of the 737-max scheduled mostly for 2019.


Enjoy.
Nice post
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Old Aug 2, 2017, 8:21 am
  #293  
 
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Originally Posted by quantumofforce
Nice post
Thank you sir. Have a wonderful day.
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Old Aug 2, 2017, 11:19 am
  #294  
 
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Raised PT, $27, $28, TD $34

but AC is -4% today to $20.xx
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Old Aug 2, 2017, 11:37 am
  #295  
 
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Originally Posted by SparseFlyer


But then again... the market can be irrational... and for a very long time.

Your post reminded me of the famous line first uttered by the Forbes columnist A. Gary Shilling

Markets can remain irrational a lot longer than you or I can remain solvent

Cheers.
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Old Aug 2, 2017, 12:31 pm
  #296  
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http://business.financialpost.com/tr...7-e2cfdcd8ee6f

Analysts upgrade 'significantly undervalued' Air Canada stock after record results
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Old Sep 1, 2017, 7:40 am
  #297  
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https://www.fool.ca/2017/09/01/why-a...stment-target/

Why Air Canada Could Be Warren Buffetts Next Investment Target
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Old Sep 1, 2017, 9:09 am
  #298  
 
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Fool.ca
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Old Sep 1, 2017, 9:43 am
  #299  
 
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personally i think we are in a different phase of a cycle..... 2007 fuel prices were high, airlines were running older fleets and had to restructure to reduce operating costs..... this is followed by the economic crisis and the need to top up pension funds.

fast forward last few years - airlines have newer fleets, fuel prices are lower and airlines have managed to lock in new operating structures/costs/collective bargaining agreements and pensions doing better.

the next challenge i see are price wars, new origin-destination markets and excess capacities.... which may result in some airlines not surviving the new marketplace.....but who knows how long that will take.
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Old Sep 20, 2017, 12:42 pm
  #300  
 
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Another recent record high today... $25.79
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