Chorus Aviation Inc (CHR.TO)

Mostly Air Canada's primary client. It's pulled back with the market. Pays a nice yield. They've re-signed with Air Canada, so previous risk is now gone. He's not a fan of airlines. Hold it. The dividend is safe.

It has pulled back. They run the regional flights for Air Canada. The interesting part is that they are starting a leasing business. They pass through all their fuel cost to Air Canada, so they don’t get impacted by the raising price of oil. Yield of 7.1%. They have great franchises.

He thinks the dividend is safe. It is the regional airline for Air Canada. They raised money to deploy into the leasing business. He thinks it is undervalued and should trade over $8 per share. Yield 6.5%.

He runs income orientated portfolios and likes the dividend on this and sees good growth. He sees some concern post 2020 when their deal with Air Canada Jazz ends. A great cash business and they are expanding their business beyond Air Canada. A great contrarian name. Yield 6.3%.

Shares have done well. They depend long-term contracts wth Air Canada, and these contracts support their heavy debt. But what happens if things go wrong with Air Canada, given all this debt? He's on the sidelines here.

Their biggest client is Air Canada. He thinks there is a good base for the company in the medium term. They are continuing to do reasonable well. Definitely worth owning for the income.

(A Top Pick March 30, 2017. Up 4%). This is an example of a high-quality stock that has sold off as the market has chased growth. Airlines have been under pressure because oil prices have been rising. However Chorus doesn’t have this problem. They have no currency exposure or fuel exposure. They are purely an operator on a pass-through basis. They own the planes (JAZZ) but Air Canada owns the routes and subcontracts capacity to Chorus. As long as Air Canada is flying, Chorus makes its margin on the hours flown. They have a high dividend but only a 37% payout ratio. They trade with a high return on equity and are very cheap. They did an equity deal a few months ago that weighed on the stock, but they did it to grow their leasing business. There is no good reason for the declining price of this stock.

It is the most misunderstood company out there. It got tanked along with the airlines but they have a contract that is almost like a take or pay. They get paid to have the plane in service where there is a bum in the seat or not. They suffered where they did an issue while the stock was going down and people are not patient with them. He thinks the dividend is okay and is a good one. He thinks it is a contrarian name where you get paid while you wait.

A regional airline which is 100% dependent on Air Canada (AC-T) for its business. He is a long term investor, but does not like airlines for this type of investment. With oil prices and wages going up, he really would stay away.

It's coming off a rare sell-off. Volumes are good and starting to rise where it's held before. Buy or hold.

A regional air carrier that gets its business from Air Canada. The contract renews in the next couple of years. The balance sheet is fine and the dividend appears safe. He fears the recent weakness in Air Canada stock price. Yield 6.4%. (Analysts’ price target is $10.50)

He likes their relationship with Air Canada--they handle Jazz for them--a risk-free contract. So, the cash flow is stable. Has a healthy, safe yield. Enjoyed an equity investment from Fairfax, recently. You can be long this stock here.

He does not look at the balance sheet, nor does he do single securities. The 12 months analyst target suggests 10-15% upside on this stock. At a minimum it has stopped going down.