Paul Gardner, CFA Bombardier Inc (Pref-B) BBD.PR.B-T DON'T BUY Sep 05, 2006

There is a huge amount of debt at the company. The ‘B’ preferreds were trading at 8% but there is a lot of risk. He would be very wary of anything they say. He was glad he got out because he was afraid of what was going on with the ‘C’ series. They have constant bailouts. The preferreds are reasonably secured.

If you want to speculate, then go for the equity. If you want less speculation, then go for the bonds. Preferreds are kind of a quasi equity in between. If the company goes bankrupt, you might see a couple of shekels coming from the Bombardier press. Usually the bondholders get $.20 on the dollar. He doesn’t think the story is over yet. The preferred shares gives you a 6.25% coupon.

The fixed-rate preferred that pays a 6.5% dividend. Because rates are rolling over, a lot of these fixed-rates are doing well; they act like bonds