"I had a long term value for them of $15.00. They would have been there without this garbage."
Is that right? Why weren't they there before the government enabled both companies to talk? Why did they go up after the announcement of such government actions?
Well, I think the answer is fairly simple. Investors feel that AC and CA cannot continue this way. In this competitive market, AC will have a hard time getting new markets without Asian routes, and I don't think that they will get them by waiting for CA to go belly up.
Lets face it, as soon as the economy turns sour, and Asia becomes once again the center of growth, then your shares will go down and you will be crying for some sort of deal. Then again, the North American market doesn't even need to go down, just Asia to start looking good again.
Maybe, just maybe, at that point in time will you be able to realize that if we get a new Canadian airliner that set foot in both markets, and that also gets good clients from AA, Canada and investors in Air Canada will be much more favored.
It is easy to refuse such a good deal when all looks smooth for AC and bad for CA, but remember the valuation of AC before all the stories came out and then tell me that it is worth much more than $12.50 a share by itself. By the way, that is basically the price offered by Onex. By gaining access to more markets in one relatively powerful Canadian airliner, you will be able to assure a better future for shareholders of both companies.
You say you are looking at the long term. Well, I guess your long term is pretty short and narrow minded. Too bad you cannot see the true benefits for both CA and AC shareholders.
good night,
swid |
