Stock price when the opinion was issued
Like the larger AC, these shares have come off but are seeing a bounce. The reopening of more and more travel will benefit CHR. However, North American fundamentals in airlines may not be as strong as Asian or Europe. CHR could see less performance than the larger and more global Air Canada, but this bounce in CHR should continue for the next little while.
Converted to a leasing business of planes smaller than most major airlines use, one of the major players in the world in that space. Using cashflow to pay down debt. Talk of reinstating dividend, perhaps in 2 years. Dirt cheap. Buy it, put it away, it could be a double, though it may take a while. Undervalued.
He owned it before. They operate Jazz for Air Canada. They lease and maintain airplanes, a solid business, but all airlines have been wacked since 2020. It's now a cheap stock. The story will get better. It used to pay a 5-6% dividend, not now, as the balance sheet got stretched. But there are hopes that a dividend will return, which will attract more investors.
He uses a linear regression line right through the mean. With dynamic regression it may not come back to you and you might have to just buy it. He would just take your initial position here. There is a bit of a level around $6.60 where there is support. There are also levels in the high $5s. It has an upward-to-the-right look. Take a half or third position and then take more and that will confirm it is doing what you want.