Chorus Aviation Inc (CHR.TO)

Jazz is a really stable business. Growth is through the aircraft leasing business that they have been expanding. Getting back to the old highs are possible. He is looking at buying it a while after the brake occurred and they have started to turn around. (Analysts’ target: $10.50).

(Market Call Minute.) The stock is doing very, very well. The company is improving and the market is recognizing it. It can only go so far, and he is looking at $10.50.

Just added to his position. He loves it and thinks it is going higher. The fundamental analyst from his shop indicates there is still a lot of value to be unlocked. Only trading at 9X forward earnings.

His style is to be active and trade in and out of this kind of stock. If you are a longer-term investor, you will probably be fairly happy with this company over a longer period. They have a fairly established base, because they have these billable block hours from Air Canada (AC-T), and now are starting to grow in other areas. Has a good dividend yield of 5.7%.

He likes this and has a $10 target price on it. A very safe business model. They have a great deal with Air Canada (AC-T) that will see them through to 2025.

He looks at it as a sustainable dividend name. It is a slow growth type of company.

He likes this. He has a target price of $10.50. There is still substantial upside. The contract they signed with Air Canada (AC-T) about a year ago, took out the uncertainty of Air Canada walking away like they did with Aeroplan. Young pilots move from this company into the main line. The dividend is solid and may be increased. 6.5% dividend yield.

A little small for his portfolios, but it does have a decent yield. Their contract with Air Canada (AC-T) is until 2025. The 6.5% dividend yield on this is safe.

Air Canada’s (AC-T) feeder airline. This has been a fairly good success story. People think of it as an airline, which it is, but it is much more of a manufacturing type operation. They don’t have any exposure to fuel prices. It is a “pass-through”, with a guaranteed block of hours that Air Canada will fly with them. An interesting relationship that will continue to work. Stock is reasonably valued and has a pretty good yield. Dividend yield of 6.5%.

Regional airline for Air Canada. They have no sensitivity to costs. They have only one customer. They have a high ROE and a 6.5% yield and a 50% payout ratio. Recently they entered the aircraft leasing business. (Analysts target: $8.25).

Hasn’t spent as much time looking at this, but there is a peer in Canada he would highlight, Cargojet (CJT-T). It’s a little different in that it is centred around cargo rather than people.

Transportation tends to do well this time of year, between late January all the way through until May. This is based on the cyclical improvement of the broader economy. Manufacturing tends to do well this time of year. Transportation, including this stock, has seen underperformance recently. The Dow Jones Transportation average in particular has been underperforming its benchmark average. That suggests buying demand is no longer there for transportation. You probably want to stay away until there is an improvement in buying demand. About $6.60 is its support.

It is an offshoot from the airline industry, which does well in the fall time. Maybe Warren Buffet will buy this one. We have seen the break out and it is above resistance. It tested it and came back up. This actually looks quite favourable.

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.

Just had a move up recently, due to a financing they did a couple of months ago. A really good business. Operating a lot of regional flights that are not so competitive and has a relationship with Air Canada (AC-T). He prefers just playing Air Canada directly, which is very cheap. On a valuation multiple basis, Air Canada would screen cheaper than this one or Westjet (WJA-T).