Chorus Aviation Inc (CHR.TO)

Has had a good move, and feels they are doing the right things. Their deal with Air Canada (AC-T) is going well. They’ve ordered more aircraft. This is a good situation.

Industrials have had a good year. This also had the benefit of low oil prices. Taking some profits makes sense. If you have nothing in the US, you should be looking at some of those names, for both currency and greater growth prospects.

They have an agreement with Air Canada (AC-T), so it kind of precludes them from being a take-out candidate. Just did their 1^st lease deal prior to a Fairfax investment with them. This is positive, as it diversifies them away from Air Canada. It is quite a competitive market, and the stock had a really nice run up over the last couple of weeks, so he sold his position.

He looks at valuation, price momentum and volatility. This stock is good in all ways. They are a slow and steady operator of Jazz Airlines. Foreign ownership rule changes will not impact them. It tends to decline as it gets close to contract renewal and then becomes a bond-like return. A solid company and a good operator.

(A little worried about the markets in the short term, and wants to give viewers some things that won’t have too much downside if the market trades down.) This runs some of the airports and some of the Jazz flights. They have a very stable CPA agreement with Air Canada (AC-T), which locks in the revenue pretty tight, and also passes through their costs. Dividend yield of 7.89%.

This is fairly high risk and high reward. You get a good yield, but it is more of a yield trap than a safe income stream that you can bet on. You are better off with names that provide a little less yield, but has stability that the dividend is safe. The stock has had a real move upwards, but the growth trajectory from this point forward is going to be challenged.

(A Top Pick Sept 8/15. Up 17.29%.) He still likes this. It ultimately is an airline without the sensitivities to fuel costs, etc. The knock against them has always been that it is tied to the hip of Air Canada (AC-T), but this is not a bad thing. Good yield of 8%. Still really cheap.

They signed a new long term contract with Air Canada until 2020. There is not a lot that is going to affect their income generation. They are shielded from fuel and labour costs. It is very bond like for an equity.

Has owned this in the past, prior to when they did the extension with Air Canada (AC-T). A lot of the discount has been taken out of the stock and it is trading at Fair Value now. Because of the way their deal works with Air Canada, their dividend is probably safe. He would like to see what other avenues they can look at in order to expand the company.

When the economy gets fragile, one of the 1^st things to go is the valuation on airline stocks. The oil price and the low Cdn$ have been really hard on airlines. However, this is a regional and feeder airline for Air Canada (AC-T), so it is going to be insulated from some of those things. His last research on this indicated that the 7.6% dividend was pretty safe. You are probably okay, barring a major downturn in the economy.

Essentially the company that operates Jazz Air for Air Canada (AC-T) on a 10-year contract. They get paid for a certain number of hours a year and it is a pass-through contract. They have sufficient cash flow, that in addition to paying a really nice dividend, they bought Voyager. Extremely well-managed.

(A Top Pick Sept 8/15. Down 4.49%.) More or less flat, but pays a nice dividend yield of just over 9%. A feeder for Air Canada (AC-T). This remains a cheap stock. Solid ROE’s at 20%. 5X EBITDA.

Has owned this in the past. Worked their way through a lot of the market’s concerns last year, solidifying their deal with Air Canada (AC-T) and with the airline pilots. Thinks it has a fair amount of stability because they have the billable block hours from Air Canada. Doesn’t expect you will see a lot of growth, but you will get the dividend.

Looks fairly cheap, but it is a difficult one because it is not that big. Has a very nice yield. Have an agreement with Air Canada (AC-T), so a lot of revenue is pretty much guaranteed. If you are going to play the airlines and lower oil prices, you are probably better off playing one of the other names to give you more torque. Very difficult to make money in airlines at any time. Doesn’t think there is a lot of downside.

(Market Call Minute) He does not see a lot of growth, but certainly they have de-risked it a lot.