Business & Investment

Air Canada’s share price could be on the verge of a parabolic rise.

Very volatile stocks last year, Air Canada (TSX: AC) It has been bouncing at the $ 20 level for some time.In a recent article I emphasized why I think this stock could reach $ 30 this year..

I think many factors have been shaped to support such a treatise. Therefore, investors looking for rebound play will be well rewarded by considering Air Canada at these levels.

Pandemic-related sensitivities may be good

The aviation sector has been hit by the recent pandemic. Travel restrictions are still in effect, forcing airlines like Air Canada to consider other sources of income to stop the burning of cash flow that has destroyed their balance sheets. Indeed, recent short-term moves by Air Canada’s management to initiate the transportation of air cargo in a larger way have had tremendous effects. In addition, cost-cutting efforts severely limited the company’s cash burns this quarter. This is a company that is currently doing all the right things. If Air Canada can continue to stop bleeding, investors will be able to make parabolic profits when the economy improves.

In the medium to long term, the resumption of discretionary travel will increase Air Canada’s inventory. Yes, I think you will see structural damage on your business trip. But I also think there is a tremendous amount of disgusting demand for vacation trips. Once the restrictions are lifted and the world returns to “new normal,” being trapped in a quarantine and telecommuting environment can be an important catalyst.

Therefore, the fact that this stock was hit very hard as a result of a pandemic could be beneficial when the restrictions were lifted. Indeed, Air Canada’s value as a rebound stock should not be discounted at this time.

Short interest in monitoring this strain

Moreover, as we have seen in the recent rise in other stocks BlackBerry Air Canada may win bids in the coming weeks for other significantly deficient stocks. A recent Reddit “Wall Street Bets” -fueled rally could rob many poorly performing stocks with high levels of short-term interest rate parabolas.

At the time of writing, Air Canada’s volume ratio is as short as about 44%. This shows that the market is bearish about the company’s future outlook. Individual investors looking to burn short-sellers may look to Air Canada. Indeed, this is a potential catalyst worth noting right now.

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Stupid contributor Chris Macdonald There are no positions in any of the listed stocks. The Motley Fool recommends BlackBerry and BlackBerry.

Air Canada’s share price could be on the verge of a parabolic rise. Air Canada’s share price could be on the verge of a parabolic rise.

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