Investment Q&A

Q: Can I get your thoughts on Air Canada after today’s announcements and the stock free fall? From $52 to $18 seems interesting. Going to do some research on this one tomorrow.

Thanks,
Jason

Q: MGM has come down a lot approx 65 per cent in the last month and it is easy to see why. If you have a long term view would you be fine holding this name. Bought some at $22 and then again today at $10. For AC I bought some at $32 couple of weeks back. Given the beating they have taken I’m hesitant to sell at these prices with a longer term outlook. How are their Balance Sheets and do you think they come out of this intact and recover over time.

Q: Hi, 5i Team
In the market updates email that you sent on Mar/01, you mentioned the following companies deserved a closer look:

Air Canada (AC), Lightspeed (LSPD), BRP Inc. (DOO),Maple Leaf Foods (MFI),Dollarama (DOL),Aritzia (ATZ),Gildan Activewear (GIL),
Alimentation Couche-Tard (ATD.b), Canada goose (GOOS), Descartes Systems. Group (DSG), WSP Global (WSP), 

In the "5i special Opportunities Report" within the Special Market Volatility Report email sent on Mar/09, you recommended 10 stocks that were very attractive. Only WSP and DSG were also included. What do you think of the others? Is it a good time to buy them around March?
Are they also solid names worth owning especially now after some huge corrections?

Thank a lot!

Q: When do you think is a good time to buy Air Canada? It's gone from $52.09 on January 13th to close at $27.40 today; almost a 50% decline.

Q: if you were going to buy an airline these days, would you lean towards air canada or would you buy an American airline. if so, which one? bonus question: would you buy an airline with this free fall?
thanks for thé excellent service

Q: Been keeping an eye on the travel stocks as they get pummeled by coronavirus concerns. CCL yield becoming very attractive--do you think there is a risk of them cutting the dividend as they battle through the inevitable sales decline over the next 12-24 (?) months

Q: Hi 5i,

Why do you think air Canada has performed better over the last few years and better since the virus than its USA counterparts?

Thanks!
Dave

Q: Hi,

Warren Buffett owns Delta airlines. Which is a better buy Delta or Air Canada?

Thanks

Q: Hi,
Given the recent drop in Air Canada, do you think it's good time to buy? I have no position in CA and don't mind holding it for 2-3 years. thanks
Martin

Q: Hi 5i,

Are you able to tell me the rough percentage fuel costs account for in the operating expenses of air Canada?

Thanks!
David

Q: Do you have any input on AC's $2.50 fall today. I can't find anything.

Q: The U.S has a first case of the virus. Do you think it would be wise to sell 1/2 my position in AirCanada and buy Transforce?

Q: What would be your top recommendation in the airline sector, US or CAN. Thank you

Q: Hello, Air Canada has been very strong for quite some time. AC's PE now sits at around 13X wheras US carriers are sitting ~7-8X PE. With the risk of oil prices spiking likely sitting at all time lows, the previous "highly cyclical sector" knock on the airline business, seems less of a problem. What are your thoughts on taking a position in an airline at this time? If you were to take a position, which would be your preference in order - and why?

Q: I noticed that AC is trading at a 4.7 cash flow price ratio, P/E is about 11.5 . My understanding is that, in general, airlines are a poor investment, but I wonder if AC will be willing to pay a dividend, and I ask myself how investors would react to that. Could AC become a dividend paying stock and convert to utility type of company ? , would you buy it just for the growth ? or is too volatile for a long term hold ? thanks

Q: Air Canada has demonstrated very good EPS growth and ROE for some time. Their stock has had a modest pullback, August through September, but seems to be gaining momentum again. Air Canada has the 2nd largest fleet of Max 737 in the world. Why wouldn't the grounding and route cancellations affect results. Q1 and Q2 results beat estimates. Q3 results, typically the largest reporting period, is due October 29. Do you think it will affect Q3 results? Would you take position now or wait until after October 29.

Q: i own air canada and air transat, do you think there will be a bidding war. dave

Q: Would you lighten up on Air Canada after this Onex bounce.

Q: Please comment on the latest results.
Buy, hold or sell?

Q: Hi,
I recently sold my AC shares (kind of reluctantly since I had done well on them) and exchanged them for NFI, which I think have more upside. Do you think this was a reasonable move?

Thanks