Chorus to be sold ?

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truedude
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Re: Chorus to be sold ?

Post by truedude »

fish4life wrote: Wed Oct 28, 2020 4:07 pm Air Canada may get to a point where they stop paying chorus for a few months and then go through CCAA at which point Chorus will most likely not get paid for those months and the CPA could be up for renegotiation as a reduced rate with much less aircraft. That is one risk being priced into the stock thus reducing its value.
Air Canada is zero risk of going through CCAA for at least the next 6 months. And I very much believe the government will come in at some time with long term, low interest loans.

So I don't believe there is any risk. And who ever is bidding for it know this too. The market has it undervalued for now. But anything below $6 is an insult, and for me, I will take my chances.
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Splash
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Re: Chorus to be sold ?

Post by Splash »

fish4life wrote: Wed Oct 28, 2020 4:07 pm Air Canada may get to a point where they stop paying chorus for a few months and then go through CCAA at which point Chorus will most likely not get paid for those months and the CPA could be up for renegotiation as a reduced rate with much less aircraft. That is one risk being priced into the stock thus reducing its value.
I've been thinking the same thing. AC is the one holding the cards and if they were to get desperate, don't be surprised if any of the above doesn't come true.
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