Question

would you buy or sell the stocks of Air canada company? Recommend with examples.

Answer 1

I will be wanting to buy the stocks of Air Canada company because it has corrected a lot since the coronavirus pandemic has unfolded in the economy and Air Canada is the largest airline of Canada by fleet size and passenger carriage, so it is still having the largest amount of the passenger share

There has been a large correction in the stock market due to pandemic concerns and physical lockdown but there is an expectation of revival of the economy due to success of vaccine sooner and hence one should be starting to buy those companies which will be gaining the most when the economic recovery will be possible and Air Canada is one of the company which will be gaining out of the economic recovery, because it has almost corrected 80% from the top and it has the potential of going up once the situation will be setting so I will be buying this companies at dirt cheap valuation and I will be trying to hold it for the longer period of time in order to make a multibagger so I think that I am going to buy the share of Air Canada because these companies are going to Survive either through bailout package by the government or through equity dilution, but this company can survive when the airline services are completely resumed, the company services are going to regain their momentum and the company is going to regain their profits so this is just a temporary halt in the operation of the company and it can be said that those who are buying the stock will be gaining in the long run.

For example, the 52 week high of this year for this company has been almost 53 Canadian Dollars and currently it has been trading around 15 Canadian dollars, so I will be trying to buy this share as I am getting at a dirt cheap valuation and I am an optimist that this company is going to survive and provide with the required rate of return.