The Smart Investor | Air Canada’s largest shareholder cuts its stake

Every Sunday, we highlight elements of financial news and stock market news that may be beneficial to the investor, but which may have gone out of sight.


Richard DufourRichard Dufour
Journalism

The largest shareholder inCanadian Aviation It again reduced its stake in Montreal Airlines to less than 10%.

On Wednesday, Fidelity revealed in a document it submitted to stock market authorities that it sold more than $ 35 million of Air Canada shares during December and January. The asset manager sold more than 500,000 Air Canada shares on January 25.

Fidelity revealed last July that it has become Air Canada’s largest shareholder and holds a 10.1% stake. That stake fell to less than 10% after selling 817,000 shares at the end of August. The purchase of more than 12.9 million shares on November 9 helped reduce its stake in Air Canada to more than 11%.

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Bombardier She gained a new follower on Friday. RBC analyst Walter Spracklin now recommends buying the stock. He believes the stock could reach $ 1 within a year. ” [L’année] 2020 was a lousy year for Bombardier, which ended in lower than expected results. [Cela] He said, Bombardier is now a weak and less complex organization. I would like to point out that the stock is attractive, and I suggest that investors take a look at a long-term underlying value approach. “

He notes that “earnings are more predictable” by owning only business jet activities, and argues that now is the time to put them in stock before the investor’s day on March 4th which could lead to a rally in the stock market.

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They are only two of the 17 analysts who would suggest buying Bombardier stocks. Average target price for experts in 12 months is 56 cents.

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“The speculative climate that is currently feeding the stock market craze is clearly reflected in the valuation criteria,” Hexavest In this week’s post.

“Once the investor euphoria fades, we expect the potential for corporate profitability to be lower than the levels the markets currently rely on and the ensuing disappointment will create buzz in the markets. So we maintain a cautious and defensive stance.”

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SNC Lavalin It just removed a thorn in its side with the announcement this week of an agreement to sell its oil and gas activities in the resource sector. Experts believe that the results will now be more predictable and that investors can now see the end of the tunnel and focus on the remaining business and prospects.

“The market can now turn its attention to the possibility of the significant rally,” said analyst Mark Neville of Scotia. “The future is basically now, which is the first half of 2021.”

Of the 13 analysts who follow the SNC, 11 recommend buying the stock. Even after the stock rallied this week, the experts’ median target price still points to a potential gain of close to 25% over 12 months.

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“If you fundamentally believe in the pink future of Bitcoin, the important thing right now is not to look for the perfect entry point. You have to invest. Ideally, invest in your TFSA,” said portfolio manager Martin Lalonde of Rivemont Inc. His weekly financial message.

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Cryptocurrency fund manager Rivemont also notes that Bitcoin has overtaken gold this week as the fourth most popular investment tool in the US after the equity and real estate markets and 401k (the equivalent of RRSP in the US).

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Thanks to an acceleration of vaccination campaigns, activity will rebound strongly from the second quarter, as Mirabaud expects in its financial letter sent on Friday.

“The crisis has led to an increase in saving rates, latent demand is still high, and the financial wealth of American families has increased during 2020, and all the elements that are struggling for a strong recovery in activity,” identifies economist and strategist Mary Thebott.

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Quebec addresses from Assertive forest products, BRP, TFI (Formerly Transforce), Bush health (Previously abroad) and Taxis This week they all reached their most recent 52-week high in the stock market.

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