Kip Powick Posted September 28, 2004 Share Posted September 28, 2004 Air Canada Ready To Soar Link to comment Share on other sites More sharing options...
Guest rattler Posted September 28, 2004 Share Posted September 28, 2004 It seems that the closer AC comes to their day in the sun, the harder the hit on WJA. I see the stock is trading in the 12.70 range today. Upto this week, it was a fairly solid 13.50. Of course some of that might be reaction to the record high to USD50.00 for oil. I continue to wish both airlines the very best of luck in this "very interesting times". Link to comment Share on other sites More sharing options...
CanadaEH Posted September 28, 2004 Share Posted September 28, 2004 I don't mean to cast any negativity on Air Canada or its employees, but I don't think Air Canada will turn a profit in Q4/Q1 (I think Dagger even predicted that). Given how investors treat "disappointments" (read: WJA performance in Q1/Q2), does anybody feel these shares are going to hit the levels that some analysts are predicting it will hit ($30-40 range)? Link to comment Share on other sites More sharing options...
Guest rattler Posted September 28, 2004 Share Posted September 28, 2004 I guess we will see what they will do starting Oct 04 which I understand is their first trading day. Could be an interesting ride for investors. Link to comment Share on other sites More sharing options...
dagger Posted September 28, 2004 Share Posted September 28, 2004 I don't mean to cast any negativity on Air Canada or its employees, but I don't think Air Canada will turn a profit in Q4/Q1 (I think Dagger even predicted that). Given how investors treat "disappointments" (read: WJA performance in Q1/Q2), does anybody feel these shares are going to hit the levels that some analysts are predicting it will hit ($30-40 range)? You should be concerned about your own situation. I think WJ's string of consecutive profits is in jeopardy this winter. What was your profit in Q1 04? Now consider that crude is up over $10 a barrel and you keep adding capacity and Jetsgo keeps adding capacity. Yields were great in July/August, but tanked in September. As I predicted - when I looked ahead at the winter of 04-05 - it's going to be a bloodbath. AC has the best strategic focus in that it is reining in domestic capacity through gauge change, and is buying out employees as we speak. So both fleet and labor cost are being curtailed at just the right time. But make no mistake about it. This is going to be the winter from hell for the industry, and no one is going to be immune. As for AC's share price, I don't think anyone expects an initial runup in price to be sustained. Some creditors who see a $35 or $40 price are going to want to get their money out. I'd see the price fall back towards $20. Everyone and his brother expects that to happen, so I doubt shareholders will be disappointed in the sense you describe. I said the first true quarter for AC - the first that fully demonstrates the capability of the plan, after another few thousand employees are taken out of the system - is Q2 05. I have no reason to believe otherwise. Link to comment Share on other sites More sharing options...
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