Air Canada is now greatly oversold and is trading at 1.87 earnings and 0,39 book value.
In the industries the real numbers are 5 times book value and the nearest P/E ration is 12.85 for Delta Airlines.
So what does it means: time to get in.
Sure oil price is a factor but Air Canada is offsetting that cost by price ticket hikes and i believe that oil actually is high NOT because of demand but because of speculators. So the moment they will decide to pocket their profits (my impression is very soon) watch out for a return for AC.B to the 3,50$ a share meaning there is a 60 to 70% profit in a short to medium time frame.
In the industries the real numbers are 5 times book value and the nearest P/E ration is 12.85 for Delta Airlines.
So what does it means: time to get in.
Sure oil price is a factor but Air Canada is offsetting that cost by price ticket hikes and i believe that oil actually is high NOT because of demand but because of speculators. So the moment they will decide to pocket their profits (my impression is very soon) watch out for a return for AC.B to the 3,50$ a share meaning there is a 60 to 70% profit in a short to medium time frame.
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