Paul Gardner, CFA Bombardier Inc (Pref-D) BBD.PR.D-T DON'T BUY Aug 08, 2006

3.85% yield. Better return than on a Canada Savings Bond. The balance sheet position is fairly robust. It looks like their end markets are improving.

They keep getting new orders, but questions if they can make any money on them. Prefers the bonds and preferreds over the common stocks. Preferreds are trading at around $21 on a $25 par which gives a nice yield. You could BUY bonds for an RRSP account.

He used to own this preferred. It may yield 7% (it's been a while for him). He would consider owning the preferred, but not the common share. They're in a tough business, and BBD is allowed to fail because it is backed by the governments. But the preferred shields you from these ups and downs. The new preferred shares, however, are volatile, which he thinks shouldn't be issued. This is worth investigating.