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

This is quite a controversial company. He has not recommended this one for some period of time. It is highly levered. Has been very disappointed in the development of the C series. Having a flight test very soon, so a lot of what happens to the stock will be dependent on the results of that. Recently had to do quite a large issue. At these levels, this is a speculation rather than an investment.

He would not touch this stock. The debt is incredibly high and the profit margins are incredibly low. They are in a credit crunch. (See Top Picks.)

It is one of the dogs he held. Even the smart analysts don`t know where this stock is going. He is looking to exit it in the mid-$3 area. This is a speculative play.

He bought because of the change to the new CEO, who is just what this company needs to get this C3 into production, plus he has the marketing skills.

Chart is showing lower highs and lower lows. It is not too favourable. Industrials tend to do well this time of year, but this company is actually an exception to that. From the start of the year all the way through to the end of March, it tends to be very volatile. Once you get past the volatility, from about late March all the way through to the end of June, it has had a pretty respectable seasonal run with gains averaging about 12%. Do you want to sell and take a loss here when it is definitely oversold and there is a potential seasonal spurt coming up?

Very risky right now. It has unbelievable upside, but the C series is a noose that could hang them. The order book is not materializing the way they wanted. They are starting to get tight on some of their covenants. Competition is kind of beating this company to the punch.

There is a lot of uncertainty in their outlook. Somewhat speculative. It all rides on their C series program. They recently downgraded their cash flow guidance and are shutting down their Lear jet program. There was concern about the liquidity in their balance sheet. On their transportation side, margins keep getting lowered.

Has done poorly and it is a tough business. He has never owned it.

This has been really frustrating for a lot of Canadian investors. They have just come up with a pretty major announcement on shelving their project and laying off people. Wait until it starts to turn up before thinking about buying.

His view is not very constructive on this company. They are taking a big charge on their Lear jet side, which was supposed to be a pretty big driver. From an investor’s point of view, there is merit in splitting the company into 2 divisions.

Sold his holdings, because they kept experiencing delays on their new lines of regional jets. Since he sold, it has had a bit of a rebound. They did have some orders, but the orders were largely for their existing planes.

The key continues to be their C series. Have they built a product that will resonate with potential customers? Spent a lot of money on it, and it has been a huge deployment of capital. So far the response has not been stellar. Their trains franchise is rock solid and is very strong in Europe. Thinks the jury is still out on this company.

$5.95 model price, 50% upside. He is bearish on Canada, however. He would sell if it broke EBV.

Doesn’t see a lot of upside in this company over the next year or 2. The overhang on this name is the C series. It is in flight testing now, and has been delayed a number of times. The company indicated they hope to get it in service in the 2^nd half of next year. They are at that period of time for airplane manufacturers where they are burning a lot of cash. On their transportation side, margins have been very slow to recover and they continue to restructure and lay off people there. Doesn’t see a lot of earnings growth for the next couple of years. If you own, consider selling and finding better growth elsewhere.

Below $4.10 it has always been a good buying opportunity. They are going to get their stuff together eventually on the ‘C’ series.