Air Canada (AC-T)

Airline business very hard. Would not recommend investing. Too much leverage and cyclical revenues. High capital expenditures also make it hard to earn profits. Travel preferences very fickle among consumers.  

Stock price almost near a floor (good time to buy). However, market cycle moving towards a bad time for airlines. Would not recommend buying. Seeing higher prices going forward (not good for business). 

The last time the balance sheet looked like this the stock price was $50. As the population grows there is more demand now. It trades at 3 or 4 times earnings so is very cheap. Governments are pretty much out of the airline industry globally.      Buy 12  Hold 2  Sell 1

More possible downside from here, as shown by the short-term trough that was taken out recently. Technically, very clear and obvious support below where it is now, generally around $16.50. Wouldn't be surprised if it found support and then bounced around. If it breaks that, get out. 

He owns this in his aggressive trading portfolio.

Not a great investment for many years. Airlines, in general, are a tough business. Huge fixed costs, Boeing issues are restraining capacity. Possible short-term benefit if WestJet mechanics strike, until the strike is settled. 

One of his criteria is the balance sheet. High-yield bond issuer. Still has a fair bit of debt. When he goes to work every day, he has his 5 biggest investment mistakes sitting on his desk -- the common theme was that they each had too much debt.

Strong brand. Airlines remain an extraordinarily difficult, capital-intensive business. Exposed to labour unions, commodity pricing, and heavy regulation. Profitability challenged, high debt.

Tough business to make money in, but can be traded on market volatility. Is a risky asset class, and would recommend as small portion of portfolio. 

It is below the support level of $18. There is not much buying so there is no volume support. A general statement - just because a stock is low does not mean it is going up.

US airlines have picked up more, but Canadian ones just haven't. Stuck in a multi-year range of $16-24. Transports have started to pull back on both sides of the border. Caught in a sector correction.

Weak. 200-day MA is going down, and you don't want to see that, as it doesn't revert quickly. Has to go out to the wilderness and discover itself. First place is $15.50, so drifting lower from today. Trying to make a bottom. US carriers starting to see softness. Good for passengers if tickets go on sale.

Likes business and expecting further growth. Not seeing rebound in share price since Covid-19. Trading at 2-3x earnings - probably a good time to invest. 3rd quarter usually the best time for business. Would recommend buying. 

Never buys airlines, too volatile. He'd mad at AC because it's always late and service is not good, overcharged for plane tickets. A tough business.

It has the same metrics as pre-pandemic, selling at 3x earnings, yet air traffic has surpassed pre-pandemic. Airlines have a bad name which will take time to fade. He saw an interview from Delta's CEO that their business and first classes are full and are raising prices. AC will do very well.

No-go for him. Yes, air travel is rebounding and there's lots of demand. But it's what you don't see under the surface that's the problem. AC had financial struggles during Covid, and now they have a lot more debt. Issued shares to stave off bankruptcy. Less upside now than there was. Very volatile industry.

High beta combined with options could result in 100% loss of capital. Doesn't recommend. Look for something more undervalued. See his Top Picks.

Frustratingly cheap. Earnings look pretty good 2024-2026. Trading at a low multiple. 30% discount to US peers. Will work at some point. For more speculative capital, as it's an airline. This is the time in the cycle to own it.