Q: Hi 5i
AC sp continues to slide even as globe and mail reports "executive bonuses fly higher after a profitable year"......Does AC have any upside potential from here? Seems AC is worse off than during the almost total shut down of airline industry during pandemic or am i looking at it too pessimistically....
Do you think AC could go bankrupt....
Longtime shareholder exploring alternatives buy sell or hold....Suggestions for alternatives to this space. 2 year time frame...
thx
AC sp continues to slide even as globe and mail reports "executive bonuses fly higher after a profitable year"......Does AC have any upside potential from here? Seems AC is worse off than during the almost total shut down of airline industry during pandemic or am i looking at it too pessimistically....
Do you think AC could go bankrupt....
Longtime shareholder exploring alternatives buy sell or hold....Suggestions for alternatives to this space. 2 year time frame...
thx
5i Research Answer:
AC is in decent financial shape. He has significant short term capital. We would not see solvency as much of a concern. The sector has struggled with higher costs, and LUV's comments and job cuts yesterday are not helping sentiment. But the stock is very cheap, and there is certainly some upside potential. We did take it out of our model portfolio last year. We would consider it "OK" but not particularlu compelling. But we think it can still be held, with some patience.