Bombardier Inc (B) (BBD.B.TO)

Pays no dividend but did in the past. They saw their fortunes turn around. They are looking more positive going forward. This is the part of the cycle when these companies tend to do very well and the valuation is reflecting this. He would stay away from it because there is no dividend. There may be a dividend in the future.

The deal they did gave away half of the upside. He is at a loss to give guidance. You have resistance at the $5 range.

Stock is turning around. Earnings were surprising to many last week. Aerospace operations, like the C-Series, are working well and general high levels of free cash flow. But the transportation side still has trouble as they lay off workers in Quebec. Still has lots of issues, but at these levels it's not a bad play.

A head-scratcher. Gets big contracts, but goes nowhere. Avoid it. It won't go much higher. Stuck in $2 range.

He predicted the end of a 17-year downtrend about a year ago, and thinks that continues. A very messy stock. It is still risky, and he doesn't see any earnings until 2019. He’s becoming increasingly confident in their revenue story, and sees 16% compounded annual revenue growth over the next couple of years. Sees their balance sheet continuing to improve. He can see 17X 2019 for the first time in a long time. You could be nibbling at this in a taxable account.

Has never owned this as he feels it is too tied to the Québec government in many ways. The company has done a very poor job of executing in many of their products. The C series was supposed to be their premier product. Hopefully the deal with Airbus works out for them. Competition is pretty high in the sector. There are a lot of better ideas around that you can make money on.

Impact of Boeing dispute decision to be announced tomorrow. It will move the stock a little bit but he can’t say on the outcome. Bombardier has said they would make planes in the States. If they didn’t have the relationship with Aribus, it would move the stock a lot more. Now that they have this relationship, it’s very difficult to say what's going to happen. Striking a partnership with Airbus has edged away some of their exposure.

Thinks this has finally turned the corner. It is definitely risky. New management continues to deliver on goals and milestones. He believes that the sum of the parts valuation is at $3.75 and that the C series is worth another $.72. He is modelling 30% EBITDA growth 2017-2020, and it is trading at a reasonable valuation of 9.2, versus its peers of 11.6. A good risk/reward story.

Next year will be better than the last. The airbus deal creates quite a wholesome deal for them. He bought a little personally thinking that it had somewhat turned a corner. Today’s European rail car deal may not have very good margins, however.

He doesn’t think this is out of the woods yet. Canadian taxpayers have put so much money into this company. This has a lot of potential upside, but at the same time there are a lot of dangers with it.

He tried to navigate this back in 2013-2014 unsuccessfully. It has had a very good move in the last little while. There are too many other cleaner, less headachy names. Too many moving parts for him.

They just sold half the company for a song. He now classifies it as a speculative company. The chart suggests it is recovering. Resistance is at about $4. Analysts’ targets are all over the map. Analysts are suggesting on average about 10% higher a year out.

The street seems to have gotten more constructive on this. He would worry about the $10 billion debt, which is debt to EBITDA of 9X. A very capital intensive business, which is very troublesome. They seem to have been given a breather by the Airbus deal they did a couple of weeks ago. If they can survive the onslaught that is happening in their train division, things will be fine, but at this price he would not be a buyer.

There is an amazing saga of the great bully Boeing (BA-N) trying to crush the situation, but it appears to have reversed on them somewhat. Great technology. Everybody is bored stiff with the delays on this brilliant plane. Now you have the great strength of the Airbus to carry on through. Thinks you are going to see deal after deal on the world stage. (Analysts’ price target is $3.50.)

Airbus bought the C-series program. Does that mean all profits from it don’t go to BBD.B-T? There will be some profits accrue to BBD but not what we thought they would be. They got diluted down for nothing. They made a 61 plane announcement and that was constructive to the stock. He has been away since 9/11 because the stock has been too volatile.