# What do you guys think about Aircanada?



## Plastickmat (Feb 13, 2012)

Any thoughts? Have a couple of buddies who bought it a couple of weeks ago, already have some interesting profit from it, any chance they'll be performing more? Reading their latest news interests me

Thanks guys 

Mat


----------



## Toronto.gal (Jan 8, 2010)

Plastickmat said:


> Any thoughts? Have a couple of buddies who bought it a couple of weeks ago, already have some interesting profit from it, any chance they'll be performing more? Reading their latest news interests me
> 
> Thanks guys
> 
> Mat


Don't be a copycat, be an informed investor & take your time learning.

"To be sure, investors who are considering taking a flier on any airline should take a deep breath and ask themselves if they really want to go there. *The airline industry has a reputation as a wealth destroyer."* 
http://www.theglobeandmail.com/glob...off-but-fasten-your-seatbelts/article4607652/

More interesting reading:
http://emergingmoney.com/consumer/buffett-airline-stocks-cea-tam-ryaay/
http://online.wsj.com/article/SB10001424052702303296604577450581396602106.html

NOT for the inexperienced investor/trader, nor the faint of heart.

Good luck.


----------



## Nemo2 (Mar 1, 2012)

"Air Canada - we're not happy until you're not happy."

Me, I've never bought airline stock, (but, in 70 years I've seen a LOT of them go under), and I can't envision ever doing so.


----------



## Argonaut (Dec 7, 2010)

Untouchable.


----------



## thenegotiator (May 23, 2012)

this stock was 1 dollar a few months ago.
even if u gambled on a rise with 2k shares u would have almost doubled ur money.
too late IMO.the high was 4 bux back in 2011
but in the stock mkt anything is possible right?


----------



## sam (Mar 16, 2012)

I would not touch this garbage


----------



## Ethan (Aug 8, 2010)

If the Wright brother were alive today Wilbur would have to fire Orville to reduce costs.

— Herb Kelleher, Southwest Airlines, USA Today, 8 June 1994.

The worst sort of business is one that grows rapidly, requires significant capital to engender the growth, and then earns little or no money. Think airlines. Here a durable competitive advantage has proven elusive ever since the days of the Wright Brothers. Indeed, if a farsighted capitalist had been present at Kitty Hawk, he would have done his successors a huge favor by shooting Orville down.

— Warren Buffett, annual letter to Berkshire Hathaway shareholders, February 2008.


----------



## riseofamillionaire (Feb 23, 2012)

Maybe WestJet, but Air Canada has too many legacy costs. I wouldn't invest in it.


----------



## PMREdmonton (Apr 6, 2009)

This was a good swing trade opportunity during all the strike threats.

Now I think it is out of dire straights but I can easily see them getting into trouble again because WestJet is expanding into the USA and some international destinations. Once they offer a viable alternative for international flights, Air Canada's profits will really wilt.

If you are looking for an investment in the airlines, buy WestJet - don't be afraid to buy the better company at the higher valuation if you are seeking a buy and hold type investment.


----------



## Plastickmat (Feb 13, 2012)

PMREdmonton said:


> This was a good swing trade opportunity during all the strike threats.
> 
> Now I think it is out of dire straights but I can easily see them getting into trouble again because WestJet is expanding into the USA and some international destinations. Once they offer a viable alternative for international flights, Air Canada's profits will really wilt.
> 
> If you are looking for an investment in the airlines, buy WestJet - don't be afraid to buy the better company at the higher valuation if you are seeking a buy and hold type investment.



Wow thanks guys, lots of information exactly what I was seeking for thanks a lot all of you!

I'll still be watching it for the "what if I had" type of observation.

Mat


----------



## thompsg4416 (Aug 18, 2010)

I would stay as far away from this stock as I can.. 

AIrlines in general are very risky with very small profit margins. This bilingual, over priced bad excuse for an airline has all kinds of legacy costs, union issues, and specific governemnt regulation from the "old days" which applies only to it that it'll never do well. 

Maybe I'll put it this way.. have you every flown aircanaeda? Did you have good service? The only thing keeping this thing from going under is its partial monopoly on the Canadian market and even that is being slowly chipped away. 

Run!


----------



## HaroldCrump (Jun 10, 2009)

thompsg4416 said:


> Maybe I'll put it this way.. have you every flown aircanaeda? Did you have good service? The only thing keeping this thing from going under is its partial monopoly on the Canadian market and even that is being slowly chipped away.


Air Canada does have one advantage because of this govt. backed monopoly - they get priority take off and landing out of Pearson (and maybe other major airports too).
So during bad weather or other delays, guess which flight gets to take off first - you want to be on that flight.
That's not a recommendation to buy the stock, though.


----------



## Homerhomer (Oct 18, 2010)

"_If a capitalist had been present at Kitty Hawk back in the early 1900s, he should have shot Orville Wright. He would have saved his progeny money. But seriously, the airline business has been extraordinary. It has eaten up capital over the past century like almost no other business because people seem to keep coming back to it and putting fresh money in.

I have an 800 number now that I call if I get the urge to buy an airline stock. I call at 2 in the morning and I say: 'My name is Warren, and I'm an aeroholic.' And then they talk me down_"

*Warren Buffett.*


----------



## Sampson (Apr 3, 2009)

thompsg4416 said:


> Airlines in general are very risky with very small profit margins.


^ this.

I made this mistake before, owning WestJet for some time. The space is extremely fickle, virtually profitless industry, and even if you look at WestJet's successful expansions over 5 years, the continued increase in load factor, the major expansion of routes and holiday services, the partnerships with american companies, the general satisfaction of customers, the company still remains extremely vulnerable during recessions, during disputes with pilots and staff.

Its an extremely cyclical business and probably fantastic to trade in and out of, but I wouldn't buy and hold in this space, maybe parts suppliers, but not the airline service industry itself.


----------



## Cal (Jun 17, 2009)

Homerhomer - Hilarious. Couldn't agree more, fortunately it is with a wise man.


----------



## underemployedactor (Oct 22, 2011)

No one really believes that people are buying this stock because they believe in the long term prospects of AC's business model, do they? This is a momentum play and as such, given that it got an upgrade recently is probably suitable for that purpose. Just make sure you get out before they release their third quarter results in a couple of weeks.


----------



## Snuff_the_Rooster (Oct 26, 2012)

Ah good ole Airlines. This brings me back.

I tend to just stay completely out of the space for obvious reasons, yet we found ourselves rightly or wrongly involved some years ago with the now long-gone Canadian Airlines.

They were on their way out and the thinking at the time was that the Government would somehow step in and save them to allow for two major airlines (choice). We wanted to get involved and we were sure we didn't want it to be equity. There were two debt issues that I recall. I think there was a 12% unsecured and a 10% secured note. They were both going for about 50 cents on the dollar (USD) if i remember correctly. We of course opted for the secured note. I'm not sure if it was even more than 2 weeks after that and it was all over with. CA would not be spared their just rewards. The unsecured note went for no greater than 12 cents? and the secured note was made whole. In fact there was a clause for $1.02 or $1.07 which was honoured.

That was the last time we've ever come within shooting distance of an airline. We were fortunate once and we can only go down hill from there.


----------



## riseofamillionaire (Feb 23, 2012)

Sampson said:


> ^ this.
> 
> I made this mistake before, owning WestJet for some time. The space is extremely fickle, virtually profitless industry, and even if you look at WestJet's successful expansions over 5 years, the continued increase in load factor, the major expansion of routes and holiday services, the partnerships with american companies, the general satisfaction of customers, the company still remains extremely vulnerable during recessions, during disputes with pilots and staff.
> 
> Its an extremely cyclical business and probably fantastic to trade in and out of, but I wouldn't buy and hold in this space, maybe parts suppliers, but not the airline service industry itself.


Same thoughts. Sometimes they can be a good trade when extremely oversold, but I wouldn't even bother personally.


----------

