A higher debt-to-equity ratio is risky and indicates that a large chunk of its growth has come from debt. There was an immense surge in trading activity in Chorus shares on Friday. In fact, Chorus Aviation’s largest aircraft leasing customer will soon be Air Canada as the latter looks to expand its regional network without using … Iain and his team just published a detailed report on this tiny TSX stock. Fool contributor Vineet Kulkarni has no position in any of the stocks mentioned. Shares are currently trading at $3.2 — still 60% lower than their pre-pandemic levels. Chorus Aviation has not yet revealed who is the interested party and what terms it has brought to the table. Don't miss out! However, this is the time for investors to bet on the long-term recovery of the sector’s leader. Jitendra Parashar | July 16, 2020 | More on: AC CHR. It has been relatively well placed amid the pandemic, mainly because of its business model. How can we help you? 5 Stocks Under $49 (FREE REPORT). In the first quarter, Air Canada’s revenue fell by 16.4% on a year-over-year (YoY) basis. Simply click the link below to grab your free copy and discover all 5 of these stocks now. The Motley Fool Canada » Coronavirus » Is Air Canada (TSX:AC) Behind Chorus Aviation’s (TSX:CHR) Recent Surge? Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada. The Motley Fool Canada » Coronavirus » Could Air Canada and Chorus Aviation Fall Further in Q3 2020? Please read the Privacy Statement and Terms of Service for more information. These factors could continue to badly hurt investors’ sentiments and drive airline companies lower in Q3. Because he thinks this fast-growing company looks a lot like Shopify, a stock Iain officially recommended 3 years ago - before it skyrocketed by 1,211%! This is the reason why you should buy these stocks only if high volatility fits within your risk parameters. Also, Air Canada has plenty of liquidity to get going for months, even with near-zero operations. The Canadian flag carrier has seen a massive 62.5% value erosion this year so far against a 5.9% decline in the S&P/TSX Composite Index. The Canadian flag carrier has seen a massive 62.5% value erosion this year so far against a 5.9% decline in the S&P/TSX Composite Index. Underlining the pandemic’s dreadful impact on the industry include Air Canada’s (TSX:AC) renewed offer to buy Transat A.T. and Chorus Aviation (TSX:CHR) attracting an acquirer. I understand I can unsubscribe from these updates at any time. Certainly, there are a lot of uncertainties in the short term in the aviation space. Please read the Privacy Statement and Terms of Service for more information. Its debt-to-equity ratio comes beyond three times. Notably, its unique business model and fixed cash flow bode well amid uncertainties. Air Canada has seen a 7.4% recovery in this month so far as compared to 6.7% losses in Chorus Aviation. The easing of travel restrictions could restart the airline’s operations, which will ultimately lower the financial burden to some extent. Their argument makes sense, as most of the airlines are already in bad financial shape after months of closure, and many of them might not even survive if the travel restrictions are not lifted soon. One little-known Canadian IPO has doubled in value in a matter of months, and renowned Canadian stock picker Iain Butler sees a potential millionaire-maker in waiting... Shares of Chorus Aviation soared to a four-month high with a 34% intraday surge. At the end of the second quarter of 2020, it had a total debt of more than $2 billion. A $500 million Chorus Aviation is undoubtedly one of the best bargain offers in the Canadian aviation space. In the first-quarter earnings report, the airline’s management warned investors — highlighting the severity and abruptness of the COVID-19 crisis. All rights reserved. Aurora Cannabis (TSX:ACB): The Time to Exit the Stock Was a Long Time Back, Market Rally: This Warren Buffett Stock Is Just Getting Started, 3 Popular TSX Gold Stocks to Buy in November, 3 TSX Dividend Aristocrats to Buy and Hold Forever. TFSA Investors: Top Stocks to Buy on the Game-Changing Vaccine News. More than 4.7 million shares exchanged hands during the day against its three-month daily average volume of 750,000. This is your chance to get in early on what could prove to be very special investment advice. The Motley Fool owns shares of and recommends CHORUS AVIATION INC. Not to alarm you, but you’re about to miss an important event. © 2020 The Motley Fool Canada, ULC. Similarly, Chorus Aviation — which reported a 23.1% YoY rise in its first-quarter earnings — is expected to report a 31.3% decline in the second-quarter earnings. Investors seem to be keeping a close eye on each update related to the ongoing pandemic that has resulted in heightened volatility in airline stock lately. It could be a financial institution rather than a strategic buyer, as the entire aviation industry is grappling with grave challenges. Notably, its unique business model … On a year-to-date basis, the shares of Halifax-based Chorus Aviation (TSX:CHR) have tanked by 65.6%. The Motley Fool owns shares of and recommends CHORUS AVIATION INC. Not to alarm you, but you’re about to miss an important event. Chorus is a global provider of integrated regional aviation solutions. Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada. This is your chance to get in early on what could prove to be very special investment advice. Yesterday, Air Canada’s chief medical officer urged the government to consider easing the travel restrictions with a science-based approach. Returns since inception, October 2013. Air Canada urged the administration “to strike a better balance for travellers and for the Canadian economy without adversely impacting public health.”, As daily coronavirus cases in many U.S. states are at their record highs, the airline made it clear that it “is not proposing relaxing the U.S. border restrictions at this time.”. The stock tanked by 5.5% this morning after it zoomed up by over 13% yesterday. To be precise, if the Transat-Air Canada deal is completed, the latter will save approximately $520 million due to the bargain offer. In comparison, the country’s biggest airline Air Canada’s revenues plunged 88%, while Transat’s revenues evaporated almost entirely during Q2 2020. © 2020 The Motley Fool Canada, ULC. All rights reserved. Analysts expect the company’s Q2 revenue to fall by 48% YoY against a 1.8% rise in Q1. Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group. However, its second quarter results will see the pandemic’s real negative impact as analysts expect its revenue to drop by 90.7% in Q2. Returns since inception, October 2013. Interestingly, we might see more such deals in the global aviation sphere amid the pandemic. I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. In its first-quarter earnings report, Chorus Aviation — like Air Canada — blamed strict travel restrictions and global cancellations for hurting its business. Find out how you can access the NEXT Shopify today! Most of the countries globally are currently focusing on letting the ongoing pandemic subside before completely reopening the economy and left travel restrictions.
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