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TSE:BBD.B
This summary was created by AI, based on 15 opinions in the last 12 months.
Bombardier Inc. has demonstrated a remarkable turnaround, transitioning from near-bankruptcy to becoming a leading player in the business jet sector with a strong balance sheet and improving cash flow. The aerospace industry, particularly business aviation, shows significant growth potential, bolstered by catalysts such as government contracts and expanding demand for high-margin services. Investors have noted the company's solid order book, which grew substantially in the past year, coupled with a focus on profitable operations and debt reduction. While some experts caution about the capital-intensive nature of the business and potential geopolitical risks, the overall sentiment remains optimistic regarding Bombardier's strategic positioning and future growth prospects.
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.
You can see the base. It is very, very well defined. A descending triangle. You need to see a breakout above the side of that triangle. Don’t look at it until it breaks out, otherwise it could be dead money for a while.