Air Canada Stock Deep Dive ANALYSIS and PROJECTION

 

Many people have been interested in whether Air Canada stock is a buy. After falling from $50 down to $12 within 1 month, investors see this as a buying opportunity. Although the stock price is “cheap,” don’t be fooled by this. You should always do you own analysis and consider business fundamentals, financial health, or macroeconomics when trying to catch a falling knife.

This video goes into a deep dive on Air Canada as a company and whether they will be able to weather the storm. As Canada’s largest airline, they are likely not going to go away. But shareholders can be burned like they were in 2003. Here is an article that talked about Air Canada’s bankruptcy in 2003: https://www.cbc.ca/news/business/air-canada-granted-bankruptcy-protection-1.366723

Investors should also take a read through the earning call from Q1 2020. This will give you an idea of what management is thinking and how they view the business. Also they reveal their plans on how they are proactively managing the business to mitigate risk. This includes raising a few billion dollars of debt equity and cutting costs by $500M.

The earnings call referenced in this video can be found here: https://seekingalpha.com/article/4342825-air-canadas-acdvf-ceo-calin-rovinescu-on-q1-2020-results-earnings-call-transcript?part=single


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