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

(A Top Pick Dec 31/12. Up 45.26%.) Feels that aerospace is a dominant theme and the place to be. It’s a brave new world out there. Airlines are upgrading. He thinks this will break out and work higher.

A lot is being built into the expectations with respect to the sales on the C series of jets. That has yet to meet expectations. He would be a little bit wary about jumping in right now. Also, this is a somewhat levered company which is of some concern if we see rates start to go up.

Waiting for the C series to get off the ground and with the delays along with everything else, he did not take a position in this one. (Stock has shown that other people have more faith.) On the basic business, rolling stock of subways and trains, they do an excellent job but it is very low margins. The risk on the airline side is fairly high. Have just signed some contracts for some sales and it may be that this is the time the stock will really take off.

He is following it. The fate of the ‘C’ series is important. Needs to see more flights. Transportation side of the business is good even if low margin. He would wait for a pullback. $4.75

Screens middle but coming up in the pack. It is probably at the cusp of where it is going to take off.

Anything north of $4 -$6 starts to get over bought. Don’t sell right now but you should sell on strength. Doesn’t see a catalyst in the next little while.

Not a good investment for the last 10-15 years. Low margin, contract driven business. Doesn’t think the company would split the rail and aerospace divisions, which the caller asked about.

Has spent a lot of time, effort and money on the C series, which is a larger plane than they have made in the past. It still hasn’t received a lot of traction. They are making a very big bet on this. Without the C series being successful, it is hard to see the stock doing well. Too much debt and too many issues.

Likes the aerospace cycle, but feels there are a number of better ways to play it then this, but this is a very good growth company. It all hinges on the C series. 1^st flight occurred about 2 weeks ago and was a success. Feels management is expecting about 300 firm orders in the next 12-18 months. As orders come in and the platform matures, there will be a tremendous amount of cash flow being generated. He could see share buybacks and dividend increases as a result. You will have to be patient with this. 2.1% dividend yield. (See Top Picks.)

Would like to see the ‘C’ series up and running, because then it will be in play. The triple top is tied to the delays.

He likes aerospace, because every aerospace stock he looks at is making new 52-week highs, if not all-time highs. He feels this is an overlooked aerospace/industrial play. Chart is not bad. There was a move upward and we are now into a bit of consolidation. Thinks it has more to run.

Not a winner at this point. Margins are still at 2009 levels. Leverage is still far too high. Cash flow is too weak. For margins to recover. They are going to need higher volumes and more than just a couple of product lines. Trades at a discount to the aerospace group by about 15%, but given his previous comments and execution risks, he can’t see it going anywhere.

(A top pick June 5/13. Down 0.11%.) This is going to follow airline stocks. There is a very strong move in the aerospace cycle. Believes this is going to be priced as a growth stock again. Could be a double and continue to go on after that. Yield of 2.11%.

In order to get a breakout on the stock, you need some news. Chart shows that we are entering into a period of perhaps another ascending triangle. However, what will drive it up is fundamental news such as an order for their C Series. He would buy it on a breakout at $5. If so, $7 is the next stop.

Test flight was successful but for stock to move up they have to show sales. If they see a stream of orders coming in we could see growth, otherwise weakness.