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

This has had a history of almost 20 years of being a very bad story for Canadians. The good news is that the new management team does appear to be executing. They beat on free cash flow on Q4 and have held on to their 2017 guidance, which is very important. Very speculative. He has been owning this by Selling Puts. Not for the faint of heart.

Not a stock he would ever think about buying. They are still probably not making money. There are so many better companies available.

(A Top Pick Oct 26/16. Up 28%.) He could see this at $3-$3.50. Very volatile, so it is more for those with high risk tolerance. Thinks you could make money from current levels on this.

He owned it years ago. He thought he could make money on it. It could be in a recovery mode, but they still have huge debt. If you find a company distasteful, then don’t invest in it.

He doesn’t follow this closely. A tough, high-stakes business that gobs up enormous amounts of capital. Good luck on been able to get a decent return on capital. They have a lot of challenges. Up against some big competitors. They still have to get their house in order financially. There is no real free cash flow being generated to speak of. Not a good business to invest in.

Chart shows a big, big overhead supply (baggage) in 2013-2015, but the base is big enough now to absorb the previous overhead supply. The chart shows a pretty good uptrend, and he thinks it should go back up and test $2.80 possibly, and then see where it goes from there.

He doesn’t like this. It is a lot more about Quebec, and from a corporate governance point of view, he doesn’t like the company. Outside of that, they really missed the boat on the jet side. They’ve had competitors come in and eaten their lunch. They have to make their C series successful, but he hasn’t seen the numbers that would make it successful. There are much better companies that you can buy at good valuations.

He does not know what to do here. It is cheap from a long term perspective, but there has been a demonstration of poor execution for years. You could take a shot at it at $1.50, but you should not be in it right now.

It has been a tough one. His bias is to stay away from this one. He has been looking at taking a shot at this one, though. The recent range is quite positive as it absorbed the news in the last two days. It is interesting form a technical perspective. $2.30 makes it interesting and a he has a target over $4. If it breaks below $2.30 then it could below $2.

This company is cyclical and is highly leveraged. They’ve had delays on the C series program. He doesn’t view this as an investment grade security. They have leverage which is 10X debt to EBITDA, and there is just not enough margin of safety to take a position.

Owns this in his Global Strategy funds as he feels it has seen the worst of its problems, and seems to be in a position now to actually deliver on the things it is supposed to deliver on. It has been well protected by the Canadian government. Feels it is in the right space at the right time with a significant potential to bounce back.

Feels a lot of the street is turning positive on the name, just based on valuation. They are halfway through letting go of 15,000 people out of 80,000. Free cash flow is improving. The C series is picking up. It is very attractive from a valuation standpoint, but for him he would rather buy it as the story starts to turn around. In the 2^nd half and we start seeing revenue coming in, then he would get interested.

It was a favourite short by hedge funds over the last couple of years. It has all changed now. It has broken out of the $2 cap. To him the valuation is just not there yet and is moving ahead on optimism. There is a risk of an equity issue to shore up the balance sheet.

(Market Call Minute.) As a trend follower, he would say buy this here and see what happens.

He was short and is now out. He is waiting for the time to re-enter it. He is waiting for an announcement on government aid. It has done well but is a very difficult, low margin, capital intensive business. He would not suggest this stock as a US$ play, either.