Air Canada (AC.TO)

Airline stocks are high beta, very volatile. Travel numbers are getting back to pre-pandemic levels. He owns AC. To mitigate single-name risk, you could look at the JETS etf, with 70% of names in the US. If you're OK with the volatility, these are good medium-longer term investments.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Still a buy for new investors seeking a recovery play. The recent news about the government deal does not necessarily add reason to buy more. The potential target price is at $40 over two to three years. Enter around $26.50. Unlock Premium - Try 5i Free

Tell him how quickly we'll all get vaccinated, and he'll tell you how AC will do. US airlines are in much better shape. It's hindered at the moment, and so it's hard to recommend as an investment. Should be better days ahead. Balance sheet is ugly, but it's doable. He'd rather own leisure stocks such as DIS, LYV or MTN.

As the economy reopenings, the airline will rebound. The Air Transat buy gives them more market share. You can male 50-60%. If Ottawa gives AC assistance, AC should refund passenger fares (he knows people who are unhappy with AC and are waiting). He doesn't see ill will from the non-refunds; people always hate Air Canada. (Analysts’ price target is $27.59)

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The political issue is background noise. The company has enough cash and business will eventually pick up. Not risk-free but it has good upside potential. Sentiment may turn positive even before business picks up. Unlock Premium - Try 5i Free

The travel industry will come back. In terms of business travelling, there will be less at least in the next couple years. There are vaccines coming but it will not be as simple as flipping a switch. You would buy the dips. TRVL is a way to play the whole travel industry.