04:07:32 EDT Fri 26 Apr 2024
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Inv Reporter refreshes Air Canada buy

2019-09-13 20:53 ET - In the News

The Investment Reporter, in its Sept. 6, 2019, issue, refreshes its buy of Air Canada, recently $43.10. The Reporter said buy five times from Dec. 1, 1995, to Aug. 21, 1998, at prices ranging from $4.60 to $14.20. The Reporter then said sell on May 5, 2000, at $14.40. Assuming an investment of $1,000 for each of the five buys, selling the $5,000 position at $14.40 would have yielded a profit of $3,582. The Reporter then said buy three times from March 31, 2017, to April 19, 2019, at prices ranging from $13.53 to $32.98. Assuming an investment of $1,000 for each of the three buys, the $3,000 position would now be worth $6,292. Air Canada flies to over 200 airports on six continents and is among the 20 largest airlines in the world. Air Canada has agreed to acquire Montreal-based Transat A.T. Inc. Groupe Mach was also interested in acquiring Transat, which caused Air Canada to raise its offer from $13 a share to $18 a share. The companies also agreed to raise the "break fee" from $15-million to $40-million. That means if Transat were to accept a bid from another company, it has to pay Air Canada $40-million. The Reporter says buy Air Canada if you need no dividends and can accept some risk.

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