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

It is a pretty complicated company. This is just too hard for an individual investor. It is tied to orders, bailouts, and restructuring. It is hard to get an edge on all of these. It could be up or down 20% on a day. Your time researching a stock is finite.

C series preferred? This company has had a really rough go, and maybe just coming off the mat. Not a huge fan. It has been very poorly run for a number of years.

This got into difficulty with debt years ago. When they cleaned up the balance sheet, he bought in. They got really dirty again with debt. They’re getting $1 billion from the Québec government with another $1.5 billion also. $2.5 billion is a lot of money. Now they want $1 billion from the Canadian government, but thinks the Canadian government has to hold tough and get the dual holding structure changed.

He keeps looking and looking and looking. They couldn’t get the C series out the door. If they can get the Delta (DAL-N) order, that might be enough to throw them over the top. Thinks they are very close to getting the minimum number of orders to get this thing going. Once that starts, the whole complexion of the company changes.

There was a report that Delta (DAL-N) gave a thumbs up to a big C series buy. Thinks this company is going to survive. The political situation is such that the governments won’t let this company die. They have a good product, but it took them far too long to get it out.

(Market Call Minute.) This is one he would avoid right now.

(Market Call Minute.) Everything is going wrong for them. Free cash flow is extraordinarily weak and will get worse. However, if the Feds do take over two thirds of the new C Series, that would surface value which would make him more constructive on the name.

A speculative play. The government does not want to let them go. You could trade it, but there will be tremendous volatility. They are talking about shipping jobs out of Canada and he does not think the government will continue to put up tax payer money if they do that. Don’t chase it. It is a speculative company.

They are going to reverse split. They are lobbying for about $1 billion in funding from the government. If this happens you are looking at about 35% dilution. This stock moves around on news so it would be better as a trading candidate. Stay away unless you have speculative money.

(Top Pick Mar 12/15, Down 52.65%) She bought after a management change. The ‘C’ series was going to be certified but the plane orders did not come in. She decided to put her money somewhere else.

Not keen on government bailouts, however if Canada wants to have an aerospace industry, currently employing around 42,000 people, Québec has made the 1^st move, and he hopes the Canadian government chips in as well. Sold his holdings prior to Air Canada’s (AC-T) order. If he had known about the order, he may not have sold.

He does not buy companies that are dependent on something good happening in the future. He thinks this is a lottery ticket. They are capital constrained in the ability to go on with their jet program.

They missed the boat on this market with regional jets. Look at who they are competing against. They can’t get the traction against the competition. Maybe they’ll get a capital infusion from the government to save some jobs, maybe they’ll sell off some transportation and assets, but given the debt and the balance sheet as it is, he doesn’t know that the equity is going to be worth more than the $1 it is trading at now, and it could be less.

A speculation, not an investment. It is something you could make a whole lot of money at or it could go to zero. An overlevered company that has been poorly managed for a number of years. There is a strong control block that doesn’t want to let go. Has been largely propped up by government largess, both provincially and federal. Thinks their C series is too delayed and too late.

The sentiment is negative because this is a company where nepotism has been in charge for a very long time. The former CEO bet the farm on a single airplane, and competition is eating them alive. A great plane, but there are no customers. Has a horrible balance sheet and horrible corporate governance.