Air Canada (AC.TO)

Contrarian would mean betting on an airline like Air Canada. Sure, every airline is getting hammered. Cancelled routes, postponed conventions and frightened travellers all spell a brutal Q1, perhaps Q2. Since February 19, Air Canada has plunged over 21% and could fall further. Trading around $32 as of this writing, AC-T is way off its $52.71 high. It's lost $3.9 billion in its market cap since that January peak, making it the worst-performing carrier this year. Ongoing woes with the Boeing 737 Max also don't help. So, why even look at Air Canada? (Certainly not the in-cabin comfort.) When this virus fades, air travel will bounce back. Conventions will resume, business meetings and vacations alike will be booked and routes to Shanghai, Beijing and Hong Kong will re-open. Other tailwinds for Air Canada is its takeover of Air Transat (leaving AC-T with virtually no competition in this country), and the plunging price of oil, unless OPEC pulls of a ninth-inning miracle. Though the immediate future is stormy, the distance looks sunny. AC's past is solid. The five years ending last New Year's Eve saw a run-up over 300%. The big question is when does the sun shine again? In a month? This fall? 2021? Who knows? Needless to say, if you are picking up AC anytime soon, be prepare to sit on it for a few years