TSE:BBD.B

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

325.32
+13.85 (4.45%)
as of Oct 20, 2026, 8:00:00 pm Market Open.
385 watching
0
COMMENT
At the air show now so there is a lot of publicity about them picking up some orders on the C series. Recently got a really good order from Net Jets for some business jets and Cessna planes. Mass transit side has not been doing as well. Sells at a huge, huge multiple to Book. Balance sheet has always been a little bit levered. Doesn’t see a lot of downside from here. This is an industry he has found hard to predict.
COMMENT
1st flight of the C7 series is due later this year or early next. If they can get this and the orders keep on flowing, it will be a huge plus. Rail business, although very thin margins, is doing well. Business jets, equally as well. A purchase of this would depend on the success of the C7 series.
BUY
Very interesting seasonal characteristics and tend to be related to the big air show in the middle of July, which is when they often announce big contracts. Stock has come back to a very important longer term support level. Starting to form a nice base pattern. Once you get past the air show, the stock doesn’t do very well so take your profits.
DON'T BUY
Model price is $4.50, but he finds it expensive here. It is good that it received good news but it is 4x book value and balance sheet is weak. If we get into a raging bull market it would be ok.
DON'T BUY
Just got a big order for a large number of jets. He tends to stay away from these types of businesses because margins are puny and he prefers companies that produce products that are used every day. Too cyclical.
COMMENT
Stock has sold off very substantially as people worried about the effect of the recession in Europe and the slowdown in emerging markets, especially China. Selling private jets is by far the highest margin, which tends to go in waves and is a lumpy market Period. Big thing is that you have the rail side which gives you long-term contracts. Next 3-6 months doesn't look a lot better and the stock price might go down.
DON'T BUY
He has stayed away from it. It is a hard industry. It is so competitive. Issues with static capital, airline industry, governments. It has not made money for an investor for at least 10-15 years.
DON'T BUY
Top end of the trading range is around $6. Would you buy at the current price? Trading at about 8X earnings. This company has gone through a long selloff but he doesn't think we are at a point where you are seeing a strong operational improvement. Technically, the stock is still basing. He would like to see it above $5.
DON'T BUY
Has not done very well in the last year or 2. This is one she always keeps an eye on. Got an order from Westjet but it won't move the stock forward. They have their C series on the commercial aerospace side and are planning on going ahead with that. Needs to see a few more orders. There is also an execution risk when you start to get a plane into production.
HOLD
On his radar screen. Have had a remarkable success in rail car orders and this has become the backbone of their business. Business jets are doing okay.
TOP PICK
The danger with this company is that they have had a lot of cash flow burn. There is a question with the C Series. A leader in the transportation field. Target price of $6.94.
BUY
This one is quite a trader. Goes down to $4 and then tries to work back up to $6. It is now at the bottom of the trading range. This would be an excellent place to acquire it. This one also fits in with the global recovery, industrial boom that he thinks is coming.
DON'T BUY
There is going to be execution risk. There is launch risk. The others have not been getting a lot of orders. This is depressing margins. She is not interested in the stock right now. The stock is cheap but there is no catalyst.
BUY
Likes this one. Pretty much at a bargain priced right now. Transportation division is doing very well. Business jets are doing quite well.
BUY ON WEAKNESS
Stock is fairly expensive. Around 5x book value and hey have some problems. 1.4 Billion charge for pensions. Nice company and very well run but expensive.
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