
TSE:BBD.B
This summary was created by AI, based on 15 opinions in the last 12 months.
Bombardier Inc has demonstrated a remarkable transformation from a near-bankrupt state to a leading player in the business jet market. Analysts praise its improved balance sheet, strong cash flow, and significant growth in service revenues, which are seen as high-margin opportunities. Various catalysts, including potential contracts and an increase in demand for aerospace products, have bolstered its outlook. While there are concerns about the stock becoming overvalued, the company's operational success and defense contract opportunities are viewed optimistically. Overall, many analysts recognize Bombardier's progress and potential for further growth, with most encouraging continued observation or selective investment in the stock.
He doesn’t see near future as being so bright. There are some major problems going on. One is how well the C series will do. Another is the negative cash flow, which has been harsh the last two quarters with about $500 million going out. Have taken on more debt, which he doesn’t like. Pays a reasonable dividend. Thinks it has a lot of upside. Could be a double. On his Buy list but will have to dig a little deeper first.
This is a call on the global story that is going to work out. It is at the bottom of its trading range of $3.50 to $4.50. There has been some selling recently because of the earnings and the conference call. You have itchy portfolio managers who don't want to sit on the stock for months so they are going to sell. Selling will probably update over the next few days and then settle down and you can start buying. Buy it in tranches, a 3rd every 3 or 4 weeks.
7.35% bond maturing December 22/26. Is it safe? Less than investment grade and is considered as a high yield or junk bond because it is BB rated. This business is highly cyclical depending on the aircraft business primarily. If this is a big exposure in your portfolio, he would reduce your exposure. If it is less than 10% of your bond portfolio, you can keep them as long as your other securities are safer and shorter.
Challenged on the aerospace side. Transportation business is strong but both are very exposed to the overhang of weakness in Europe. Thinks there will be some significant cutbacks in spending in that whole area. CAE (CAE-T) would be a better choice.