Stockchase Opinions

Gordon Higgins, CA, MBAAce Aviation Hldg Inc.ACE.H.VTOP PICKMay 03, 2005

"B" Shares. This is a pick for convertible debentures NOT the equity. There's a lot of good things that can happen to this company and they want to be able to participate. In 5 years he has the right to put the debenture back and get his $100 back. A way to play a risky sector with a cushion underneath and getting paid 4% to wait.
$34.19

Stock price when the opinion was issued

$0.16

As of Mar 12, 2024. Market Open.

Transportation
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HOLD
B Shares. In the process of liquidating their assets. If you own, he would be inclined to hold.
BUY
B Shares. On their last call they said they were going to do something but it wasn’t imminent and was going to be near the end of the year. May be bought by Ace Aviation. $23 of value in the stock, high teens if they pay a premium for Air Canada. Trading at a substantial discount.
DON'T BUY
B Shares. Everyone expects that the stock will suffer if oil goes up because of higher fuel costs. The chart is in a downtrend which shows that the theory works. Had a little bounce back recently, but is not sure if this is a reversal chart. A little too early to say. A bullish chart would be if it came back down and retested the low.
SELL
(Market Call Minute.)"A" Shares. Wouldn't want to be in an airline when there is weakness in the economy.
BUY
"B" Shares. Break up value is somewhere in the mid 30’s. Have been aggressive and successful in moving pieces out. Worth a gamble
COMMENT
"A" Shares.Not a fan of airline stocks. When times are great, airlines tend to do pretty well. When times are tough, they get absolutely killed.
PAST TOP PICK

(Top Short Aug 3/06. Up 20.9%. That means he was down.)"B" Shares. Covered it very quickly as soon as they announced they were going to spin off Air Canada. It is again trading way above its fair market value and represents poor value..

DON'T BUY
"B" Shares. 90% of the airlines lose money, so why bother.
DON'T BUY
"A" Shares. New issue. Fell 6% on issue. Will probably get it up again in the coming weeks. Probably the best run airline in North America today but in a very competitive industry, which is highly capitalized and needs lots of money.
PAST TOP PICK
(A Top Pick Sept 13/05. Down 4%.)"B" Shares. Still likes
DON'T BUY
"B" Shares. Caller wondered about a Short. The sector has improved markedly. Thinks the airline industry as a whole is still in a recovery phase, so wouldn't Short.
DON'T BUY
"B" Shares. The model price is $24.24. That's a 19% negative differential.
TOP PICK
Top Short "B" Shares. Transportations are acting very poorly.
DON'T BUY
"B" Shares. It looks like it has just broke down through its support level.
BUY
B Shares. Have done well even with high input costs. If the input costs back off, they should do even better. There was a higher low at the end of 2005. Would probably prefer WestJet (WJA-T).