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

Has been wonderful at destroying shareholder value for the best part of his career. The plane business is very competitive. The train business has catches like having to use a jurisdiction’s manpower and factories. Has a heck of a lot of debt. Invested heavily in building these planes. Probably have to raise equity at some point. He doesn’t like the dual class voting structure. Wonders about the motivation of the board of directors.

Have a great business in the subway car business and their reputation is good. However, margins are skinny, skinny. The real upside is getting the series C planes off the ground. If that happens and there are no problems, then he feels the stock has significant upside.

Is waiting to see how the order book for the ‘C’ series works out. He might look at it very seriously. 2.5% dividend, but he is not sure on the sustainability.

(Market Call Minute.) Would look to buy it in the mid-$3’s.

Likes this. There is risk with delays of `C` series. Ultimately the type of plane fits a very specific need that is growing. Buy for the long term.

This depends on when the C-100 smaller-medium-sized jet actually starts getting sold. It is now thought to be 2015. The plummet in the share price is because it is going to be delayed again and is going to cost another $1 billion on top of the $3.9 billion. 1700 workers have been laid off. In the meantime they keep on winning big rail contracts. He feels the 2 parts should actually be split up between air and rail. Wouldn’t be near this stock for the next 18 months until you see that the C series is actually delivering planes to the airlines.

Historically the time to buy this stock is right around now for a move right through until around the 3^rd week in June. The 3^rd week in June is when the Paris air show happens. The chart shows the stock has formed a very brief short-term bottoming pattern in the last couple of weeks. Has already established an upward trend and is starting to outperform the market. Just recently went above its 20 day moving average. It is getting lined up for a very interesting seasonal trade.

Has gotten negative on this company after a long period of holding it and thinking the new jet was going to be a very good thing for it. Got worn out with the delays and their problems. Really got concerned about their ability to turn their new product into real revenue. Sold his holdings. Unless you are willing to hang on for 3 years, he would move on to something else.

Has been continually postponing the ‘C’ series. It is not going to disappear, but it depends on very large contracts in mass transit business. Not a place he would invest today, even at the current price.

It is not going to get to $7 in the next 12 or 24 months. C series is their new plane and has been delayed again so potential pressure on the balance sheet. On transpiration side, margins are declining. Probably dead money for the next little while. Not much visibility on new orders. Take money off the table and put it somewhere else.

Doesn’t like it because it is too tied to the Quebec government. They have executed poorly on bringing their products to market. This has hurt the company. There has been turnover at the management level in the sales area.

Preferreds. Not an investment grade company in the senior debt level. Bonds would be better than their preferred shares, which would be worthless if the company went under.

Won’t own it for a while. They have been knocked off their top perch for some private jets and commercial jets. Until he gets some clarity he would stay away from it.

A tough one. Perennially disappointed and every year analysts get excited, the stock runs up and then it comes back. Quite a bit of leverage. He has avoided it. A tricky one to own and a tricky one to hedge.

In the short term, this is definitely a name that he wants to sit on the sidelines to see what happens. Valuation was compelling for a while whenever coming out with a new C series. All of a sudden there were delays, which cost money. There really is an issue with the balance sheet at this point. He has no doubt that company will get through this. Too risky at this time.