TSE:BBD.B

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

321.74
+1.17 (0.36%)
as of Sep 29, 2026, 5:09:26 pm Market Open.
385 watching
0
WAIT
Had a huge write down due to conversion to IFRS. Left the company hung up at 6 times book value. Downside target of $4.
WATCH
Right now, he thinks it is a “show me” business. He would like to see additional orders in the C series first.
COMMENT
Make trains and planes and trains are good for cash flow, but lousy margins while the planes have good margins but not good cash flows. You rarely get a market where they are selling big volumes in both trains and planes at the same time. If you are going to own it, be in it for a short pop only your it
DON'T BUY
Aerospace and transportation, half and half. On transportation, they have been garnering orders, mainly in Europe primarily for infrastructure. On the Aerospace side, she needs to see more orders on the C series. Getting more competition. (See Top Picks.)
WEAK BUY
Getting to the point where it looks like it is a trading buy. She is not a huge fan. They have had a bunch of poor news. Governments have lots of debt and are restricted in spending and a lot of this company’s products are government-funded. It will be a while before they have sufficient orders on the new plane to start production.
DON'T BUY
Has not been a fan as their balance sheet is extremely levered. Transportation side has been doing well but there is uncertainty because of what has gone on in China recently. Also uncertainty in the C series.
TOP PICK
Stock has pulled back about 14% over the last 2-3 months. Headline risk in that Boeing (BA-N) announced they were going to re-engine some of their 737s so market now questions if their C series planes are going to sell as many as they originally thought. This is an opportunity. Expects very good earnings growth over the next several years. Target is conservatively $7.
WEAK BUY
Has come off a bit recently – reaction to train wreck and reaction to ‘C’ series sales levels. Also, close of mass transit plant in UK. Prefers CAE. BBD has some upside potential from here.
COMMENT
Doesn't see the dividend growing because they don't have a lot of excess cash kicking around. With the C series developing they don't have much excess cash. Stock has come under pressure with the train accident in China.
PAST TOP PICK
(Top Pick Apr 14/11, Down 11.96) Problem is the ‘C’ series. Orders aren’t going to come until it is ready. He is pretty happy about this one.
DON'T BUY
Sold his holdings in this company. New IFRS reporting eviscerated the balance sheet. This now has a book value of $1. His model price is $5.95, a negative 12% differential. He would like to see their balance sheet begin to grow.
DON'T BUY
This stock has a history of moving higher from around April through to the Paris air show, normally until July. Unfortunately, it has a history of being flat or slightly lower after the air show is over. Can’t see it breaking above its trading range for a while. In the next 3 weeks, if he gets to the top of its trading range, take your profits.
BUY
Ranks quite well in his system in terms of growth metrics. Thinks we are in the news cycle in aerospace. Beat their earnings in June. Technically it is one of the more sound names in the TSX. Pays a small dividend. Trading at about 15.3X forward earnings.
COMMENT
Half aerospace and half transportation. Transportation has done quite well garnering contracts in Europe and improving their margins. On the aerospace side, have been getting orders on business jets. On the commercial side they need more orders on the C series (See Top Picks.)
TOP PICK
Likes global industrials. This is one of our few Canadian global multi-nationals. Chart is fabulous. Recently had a flat correction, which is very bullish.
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