Q: One of my basic investing tenets was to never buy an airline. But coming out of Covid, AC seemed like a can't-miss prospect (note to self - no such thing in investing!) Since the spring the stock is up about 23% and approaching my break even. This is not an equity that I want to hold for the long term so my question is: does one just continue to ride this momentum, albeit without a plan as to when to sell or just sell it now and be done with it?
I know you can't tell me when to sell but do you think there is still a lot of juice left in this stock?
Appreciate your insight.
Paul F.
I know you can't tell me when to sell but do you think there is still a lot of juice left in this stock?
Appreciate your insight.
Paul F.
5i Research Answer:
Keep in mind we took AC out of one of our model portfolios a few months ago, so are timing is not great on this one. The stock is cheap, momentum has picked up, rates are peaking (likely) and the last quarter beat expectations by 30% (EPS). We think it has some more juice left in it, and we might look to sell in the $25+ range if one wants out.