Westjet Airlines

WJA-T

TSE:WJA

30.99
0.00 (0.00%)
WestJet Airlines Ltd. is a Canadian low-cost airline founded in 1996. It began as a low-cost alternative to the country's competing major airlines.
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Analysis and Opinions about WJA-T

Signal
Opinion
Expert
SELL
SELL
November 22, 2019
It’s under review by the government whether the takeover will take place. You’re dealing with regulatory uncertainty right now. If you bought it before the takeover, unless you’re in tune with what will happen, he wouldn’t own the stock any longer. The price is fair.
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Westjet Airlines (WJA-T)
November 22, 2019
It’s under review by the government whether the takeover will take place. You’re dealing with regulatory uncertainty right now. If you bought it before the takeover, unless you’re in tune with what will happen, he wouldn’t own the stock any longer. The price is fair.
HOLD
HOLD
October 30, 2019
Will the Onex takeover happen? Q3 earnings muted but beat the street. The deal will go through, so not much has happened to the stock (and won't sell off).
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Westjet Airlines (WJA-T)
October 30, 2019
Will the Onex takeover happen? Q3 earnings muted but beat the street. The deal will go through, so not much has happened to the stock (and won't sell off).
COMMENT
COMMENT
May 24, 2019
The only way it goes higher is if there's a white knight out there, but he doesn't see anyone paying more than Onex. Tech analysis has nothing more to add, because the stock moved up to the offer price of the cash takeout.
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The only way it goes higher is if there's a white knight out there, but he doesn't see anyone paying more than Onex. Tech analysis has nothing more to add, because the stock moved up to the offer price of the cash takeout.
BUY
BUY
May 17, 2019
Schwartz of Onex saw that WJA was running at a deep discount. He's confident that Schwartz can obtain the same results as Air Canada. Kudos to him.
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Schwartz of Onex saw that WJA was running at a deep discount. He's confident that Schwartz can obtain the same results as Air Canada. Kudos to him.
COMMENT
COMMENT
May 15, 2019

A really interest deal with Onex. He has been a long term fan for years. His first professional 10 bagger. He is not convinced Onex over paid -- they probably saw this as a great time -- comparable to US peers. He thinks the regulators will approve the deal.

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A really interest deal with Onex. He has been a long term fan for years. His first professional 10 bagger. He is not convinced Onex over paid -- they probably saw this as a great time -- comparable to US peers. He thinks the regulators will approve the deal.

PARTIAL SELL
PARTIAL SELL
May 13, 2019
There is some market risk in the overall market. It is an all cash deal. You will get $31 for it. There is a 4% difference between market and the deal. If you can do better than 4% somewhere else with a similar degree of risk, then you should sell. He would take some money off the table.
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There is some market risk in the overall market. It is an all cash deal. You will get $31 for it. There is a 4% difference between market and the deal. If you can do better than 4% somewhere else with a similar degree of risk, then you should sell. He would take some money off the table.
DON'T BUY
DON'T BUY
March 20, 2019
Considering the Boeing 737 crash. They came out with good numbers and guidance in the last quarter after a few bad quarters. Their suspension of the 737s is not a huge thing, but rather a nuance. He doesn't like airline stocks and prefers Air Canada that he just sold. This is not a bad entry point. Be careful: have a buy and sell price.
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Considering the Boeing 737 crash. They came out with good numbers and guidance in the last quarter after a few bad quarters. Their suspension of the 737s is not a huge thing, but rather a nuance. He doesn't like airline stocks and prefers Air Canada that he just sold. This is not a bad entry point. Be careful: have a buy and sell price.
HOLD
HOLD
March 7, 2019
He's had mostly bad experiences with airline stocks over the years. WJA's recent numbers look good, and he doesn't see less travelling in North America. WJA has done some profit-protecting moves and should do okay. They've corrected with their recent numbers.
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He's had mostly bad experiences with airline stocks over the years. WJA's recent numbers look good, and he doesn't see less travelling in North America. WJA has done some profit-protecting moves and should do okay. They've corrected with their recent numbers.
WAIT
WAIT
October 25, 2018

They are going international but competition is increasing from other countries at the same time. They have started to consolidate and are forming a base. He thinks we will consolidate for a bit yet. In November and December are good times for this airline.

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Westjet Airlines (WJA-T)
October 25, 2018

They are going international but competition is increasing from other countries at the same time. They have started to consolidate and are forming a base. He thinks we will consolidate for a bit yet. In November and December are good times for this airline.

DON'T BUY
DON'T BUY
October 25, 2018

Likely would not own it right now. He doesn’t think the Canadian economy is quite as strong as what the government is saying. He expects oil prices to rise which means higher input costs. However there are better places to put your money. Nothing wrong with the company.

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Westjet Airlines (WJA-T)
October 25, 2018

Likely would not own it right now. He doesn’t think the Canadian economy is quite as strong as what the government is saying. He expects oil prices to rise which means higher input costs. However there are better places to put your money. Nothing wrong with the company.

DON'T BUY
DON'T BUY
September 25, 2018

In the past, he has favoured WestJet because its management is disciplined, they operated a single type of plane, they had happy non-unionized employees, and they focused on the Canadian market. But then they decided they wanted to be Air Canada. They operate several types and sizes of planes on more routes--if he had to invest in an airline now, it probably would NOT be Westjet. They were the Southwest of Canada but they have destroyed what they had, WestJet’s share price has been drifting sideways while Air Canada’s has been rising. He asserted that WestJet’s problems are all self-inflicted.

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Westjet Airlines (WJA-T)
September 25, 2018

In the past, he has favoured WestJet because its management is disciplined, they operated a single type of plane, they had happy non-unionized employees, and they focused on the Canadian market. But then they decided they wanted to be Air Canada. They operate several types and sizes of planes on more routes--if he had to invest in an airline now, it probably would NOT be Westjet. They were the Southwest of Canada but they have destroyed what they had, WestJet’s share price has been drifting sideways while Air Canada’s has been rising. He asserted that WestJet’s problems are all self-inflicted.

DON'T BUY
DON'T BUY
September 10, 2018

He is more of an AC-T fan. WJA-T has been a success story also. There are mistakes you make when you get too big. They launched an ultra low carrier. Canada cannot support more than two airlines. He likes the airline industry. WJA-T's numbers have been fine.

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Westjet Airlines (WJA-T)
September 10, 2018

He is more of an AC-T fan. WJA-T has been a success story also. There are mistakes you make when you get too big. They launched an ultra low carrier. Canada cannot support more than two airlines. He likes the airline industry. WJA-T's numbers have been fine.

DON'T BUY
DON'T BUY
August 28, 2018

He is short WestJet and has been long Air Canada against it. That is still the trade he would favour. WestJet built out too much capacity. There is no compelling reason to own it. Tax loss season is coming and companies that have underperformed, like WestJet, will stay under pressure.

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Westjet Airlines (WJA-T)
August 28, 2018

He is short WestJet and has been long Air Canada against it. That is still the trade he would favour. WestJet built out too much capacity. There is no compelling reason to own it. Tax loss season is coming and companies that have underperformed, like WestJet, will stay under pressure.

WATCH
WATCH
August 9, 2018

It has come down a lot. Airlines find it so difficult to make money. Their capacity and load rates are good but fuel costs eat into profits. At some point the bottom will come in. He is not sure what the turnaround story is going to be. You could look at it if you are a value investor.

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It has come down a lot. Airlines find it so difficult to make money. Their capacity and load rates are good but fuel costs eat into profits. At some point the bottom will come in. He is not sure what the turnaround story is going to be. You could look at it if you are a value investor.

HOLD
HOLD
August 7, 2018

Good entry point, dividend safe? Last quarter OK. Problem is pilot unionization. Fuel price has gone up. Stock’s gone down because hasn’t had a knockout quarter. Never owns airlines because no consistently growing cash flow. Dividend is safe.

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Good entry point, dividend safe? Last quarter OK. Problem is pilot unionization. Fuel price has gone up. Stock’s gone down because hasn’t had a knockout quarter. Never owns airlines because no consistently growing cash flow. Dividend is safe.

PARTIAL BUY
PARTIAL BUY
July 17, 2018

The stock has been going down. It is approaching a critical level according to Model Price theory: EBB-1 level is $17.80. His Model Price is $26.64, which is almost a 50% upside. However, if the stock drops below EBB-1, it could drop to EBB-2, which is $15. He would take a half-position at this level, but if it goes lower, he would sell and buy closer to $14.82. The market is concerned about recent news, such as the unionizing of its staff. However, a positive catalyst in the news could boost the stock an easy 25%. Making money on this stock might require trading around the levels rather than buying and holding.

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The stock has been going down. It is approaching a critical level according to Model Price theory: EBB-1 level is $17.80. His Model Price is $26.64, which is almost a 50% upside. However, if the stock drops below EBB-1, it could drop to EBB-2, which is $15. He would take a half-position at this level, but if it goes lower, he would sell and buy closer to $14.82. The market is concerned about recent news, such as the unionizing of its staff. However, a positive catalyst in the news could boost the stock an easy 25%. Making money on this stock might require trading around the levels rather than buying and holding.

PARTIAL BUY
PARTIAL BUY
June 26, 2018

His model price is $27.69, 46% higher than the current price, but the stock’s technicals are giving a sell signal and the earnings estimates have been crashing. Since 2010, the stock has hit this level three times and done fantastically after that. He would buy a little bit here but would not buy more until the stock gives a positive buy signal. If it drops much further, he would sell. If oil prices drop, WestJet will do very well.

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His model price is $27.69, 46% higher than the current price, but the stock’s technicals are giving a sell signal and the earnings estimates have been crashing. Since 2010, the stock has hit this level three times and done fantastically after that. He would buy a little bit here but would not buy more until the stock gives a positive buy signal. If it drops much further, he would sell. If oil prices drop, WestJet will do very well.

BUY
BUY
June 20, 2018

Airlines are now profitable and generate decent cash flow. He prefers Air Canada, but Westjet's headwinds are behind them and the recovery in western Canada is a tailwind. Fair valuation. A decent time to enter this.

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Airlines are now profitable and generate decent cash flow. He prefers Air Canada, but Westjet's headwinds are behind them and the recovery in western Canada is a tailwind. Fair valuation. A decent time to enter this.

WATCH
WATCH
June 18, 2018

His long term view is very negative on the airline industry. This industry has had the highest level of bankruptcies. It is not a great industry to invest in but you could trade it. He is a trader of airlines. They did better recently by adjusting for energy prices, but he does not see a bottom in the industry.

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His long term view is very negative on the airline industry. This industry has had the highest level of bankruptcies. It is not a great industry to invest in but you could trade it. He is a trader of airlines. They did better recently by adjusting for energy prices, but he does not see a bottom in the industry.

HOLD
HOLD
June 13, 2018

The airline business is very competitive. Route expansions and higher oil prices are creating headwinds. He would not recommend buying more right now. They are well managed. It may not be a bad time to enter, but the space is difficult to make this a long term hold.

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The airline business is very competitive. Route expansions and higher oil prices are creating headwinds. He would not recommend buying more right now. They are well managed. It may not be a bad time to enter, but the space is difficult to make this a long term hold.

DON'T BUY
DON'T BUY
June 1, 2018

He owns no airlines. Westjet is resolving its pilot strike. For the last decade, a lot of traffic was going to Alberta during the oil boom. That's passed. If you buy a Canadian airline, Air Canada is better--cash flow is kicking in. U.S. airlines
are slightly better than Canadian ones, too.

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He owns no airlines. Westjet is resolving its pilot strike. For the last decade, a lot of traffic was going to Alberta during the oil boom. That's passed. If you buy a Canadian airline, Air Canada is better--cash flow is kicking in. U.S. airlines
are slightly better than Canadian ones, too.

DON'T BUY
DON'T BUY
May 30, 2018

It's a well-run company and its stock has had a good run. But over the years lumbering Air Canada has caught up to Westjet which has lost its competitive advantage. AC will do better than Westjet going foward. (He owns AC.)

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It's a well-run company and its stock has had a good run. But over the years lumbering Air Canada has caught up to Westjet which has lost its competitive advantage. AC will do better than Westjet going foward. (He owns AC.)

COMMENT
COMMENT
May 25, 2018

They're under strike now and bookings are down. Now is probably a good entry point. But he doesn't like airlines. Oil is a big cost, followed by labour. It's a difficult business. There's probably a 5-10% relief rally when they settle this
strike.

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They're under strike now and bookings are down. Now is probably a good entry point. But he doesn't like airlines. Oil is a big cost, followed by labour. It's a difficult business. There's probably a 5-10% relief rally when they settle this
strike.

SELL
SELL
May 10, 2018

Airlines, autos are the kind of stocks he trades on a short leash. A drop in big volume that the one they just had is never good. Going to have some headline problems in the short term.

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Airlines, autos are the kind of stocks he trades on a short leash. A drop in big volume that the one they just had is never good. Going to have some headline problems in the short term.

DON'T BUY
DON'T BUY
May 7, 2018

The stock has taken a hit over fuel prices, competition from discount carriers and issues with staff. It's starting to look a little more attractive. It's is in a boom-bust industry, and now airlines are booming. But for how long? He can't get excited over this stock. Still too expensive for him.

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The stock has taken a hit over fuel prices, competition from discount carriers and issues with staff. It's starting to look a little more attractive. It's is in a boom-bust industry, and now airlines are booming. But for how long? He can't get excited over this stock. Still too expensive for him.

DON'T BUY
DON'T BUY
March 20, 2018

He doesn’t own this. Airlines are very cyclical and are traditionally poor capital allocators. WestJet has been better with capital, but there are concerns after the pushing out of their CEO. The underlying issue might have been labor relations and perhaps the new CEO can manage this better. However, airlines are getting late in their cycle, so the sector has a lot of risk. WestJet is trying to grow internationally, which is inconsistent with their original focus on the local market using one type of plane.

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He doesn’t own this. Airlines are very cyclical and are traditionally poor capital allocators. WestJet has been better with capital, but there are concerns after the pushing out of their CEO. The underlying issue might have been labor relations and perhaps the new CEO can manage this better. However, airlines are getting late in their cycle, so the sector has a lot of risk. WestJet is trying to grow internationally, which is inconsistent with their original focus on the local market using one type of plane.

DON'T BUY
DON'T BUY
March 20, 2018

He doesn’t own this. Airlines are very cyclical and are traditionally poor capital allocators. WestJet has been better with capital, but there are concerns after the pushing out of their CEO. The underlying issue might have been labor relations and perhaps the new CEO can manage this better. However, airlines are getting late in their cycle, so the sector has a lot of risk. WestJet is trying to grow internationally, which is inconsistent with their original focus on the local market using one type of plane.

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He doesn’t own this. Airlines are very cyclical and are traditionally poor capital allocators. WestJet has been better with capital, but there are concerns after the pushing out of their CEO. The underlying issue might have been labor relations and perhaps the new CEO can manage this better. However, airlines are getting late in their cycle, so the sector has a lot of risk. WestJet is trying to grow internationally, which is inconsistent with their original focus on the local market using one type of plane.

BUY WEAKNESS
BUY WEAKNESS
March 12, 2018

There is a lot of uncertainty around the company because of the launch of the discount carrier as well as the change of CEO suddenly. It has been a very well run company and did a good job. Buy it on weakness below $20.

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There is a lot of uncertainty around the company because of the launch of the discount carrier as well as the change of CEO suddenly. It has been a very well run company and did a good job. Buy it on weakness below $20.

COMMENT
COMMENT
January 5, 2018

(Market Call Minute.) There are opportunities in the travel side of the business. Not a company he follows actively. This is the 3rd year the North American Airlines are making decent money. Thinks this company will benefit from that trend. The biggest concern would be on rising fuel costs. If oil hits $75, it will be one of the biggest cost variables.

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Westjet Airlines (WJA-T)
January 5, 2018

(Market Call Minute.) There are opportunities in the travel side of the business. Not a company he follows actively. This is the 3rd year the North American Airlines are making decent money. Thinks this company will benefit from that trend. The biggest concern would be on rising fuel costs. If oil hits $75, it will be one of the biggest cost variables.

COMMENT
COMMENT
December 4, 2017

Prefers Air Canada (AC-T), but this is still in the sweet spot. An uptrend was established in early 2016, after making a peak at around $35. Some of the indicators are starting to come up. This is in the right space, and should go much higher.

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Westjet Airlines (WJA-T)
December 4, 2017

Prefers Air Canada (AC-T), but this is still in the sweet spot. An uptrend was established in early 2016, after making a peak at around $35. Some of the indicators are starting to come up. This is in the right space, and should go much higher.

COMMENT
COMMENT
October 3, 2017

They now have more than one type of aircraft, and instead of just a North American company, they are flying to Europe and want to fly to Asia. Looking at the possibility of ultra low-cost carriers coming in. In the US, the constraining factor is gate capacity at the airports, but it is not as limited in Canada. This company and Air Canada are vulnerable to a well financed ultra low-cost competitor.

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Westjet Airlines (WJA-T)
October 3, 2017

They now have more than one type of aircraft, and instead of just a North American company, they are flying to Europe and want to fly to Asia. Looking at the possibility of ultra low-cost carriers coming in. In the US, the constraining factor is gate capacity at the airports, but it is not as limited in Canada. This company and Air Canada are vulnerable to a well financed ultra low-cost competitor.

COMMENT
COMMENT
September 20, 2017

Airlines really come down to being a high fixed cost model. On borrowing money, interest rates are low. Also, oil prices are low. They’ve had good growth. Announced they are going to launch an ultra low-cost carrier, which should bode well for them. Be aware that when rates go up and energy prices increase, that will have an effect on airlines.

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Westjet Airlines (WJA-T)
September 20, 2017

Airlines really come down to being a high fixed cost model. On borrowing money, interest rates are low. Also, oil prices are low. They’ve had good growth. Announced they are going to launch an ultra low-cost carrier, which should bode well for them. Be aware that when rates go up and energy prices increase, that will have an effect on airlines.

DON'T BUY
DON'T BUY
September 11, 2017

For the next 3 to 6 months it is hard to see the stock moving up. It has moved up a lot on the expectation that results would be expected to improve. He would not move into it now. Expenses might run up as they acquire 787s for international service.

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Westjet Airlines (WJA-T)
September 11, 2017

For the next 3 to 6 months it is hard to see the stock moving up. It has moved up a lot on the expectation that results would be expected to improve. He would not move into it now. Expenses might run up as they acquire 787s for international service.

BUY
BUY
August 23, 2017

Its price momentum went sideways for a while. It scores in the top ten in terms of valuation now. 12 times PE and it recently beat expectations.

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Westjet Airlines (WJA-T)
August 23, 2017

Its price momentum went sideways for a while. It scores in the top ten in terms of valuation now. 12 times PE and it recently beat expectations.

BUY
BUY
July 11, 2017

This just had a positive transit last week up through $24.06. It is up again today at 1.5%. He has a model price of $36.38, a 48% positive differential. As oil prices go down, the fare money falls to the bottom line.

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This just had a positive transit last week up through $24.06. It is up again today at 1.5%. He has a model price of $36.38, a 48% positive differential. As oil prices go down, the fare money falls to the bottom line.

PAST TOP PICK
PAST TOP PICK
June 28, 2017

(A Top Pick June 3/16. Up 3.34%.) When he picked this, it was best in class in ROI and the valuation was very reasonable at 3.6X EV to EBITDA, and less than 9X earnings. It is still reasonably valued at 4X EV to EBITDA. However, they missed on earnings. He is no longer in this stock.

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(A Top Pick June 3/16. Up 3.34%.) When he picked this, it was best in class in ROI and the valuation was very reasonable at 3.6X EV to EBITDA, and less than 9X earnings. It is still reasonably valued at 4X EV to EBITDA. However, they missed on earnings. He is no longer in this stock.