Burger King?
LOL nice. I wonder if OP bought though
Don’t fear (unless you’re a Canadian/Quebec taxpayer), the government stands ready to bail out their buddies running BBD! http://m.theglobeandmail.com/report-on-business/quebec-prepared-to-bail-out-bombardier-minister-says/article23051005/?service=mobile Quebeckers ok with funding a liquidity package for Alberta oilsands (who are struggling not just due to management incompetency)? It’s great to be a well connect Quebecker. Not so much for the rest of Canada.
Corporate welfare is wrong regardless of language or region, whether it’s the aerospace sector in Quebec, the auto industry in Ontario, the Irving family in NB or what the IMF revealed last year as the $34 billion fossil fuel subsidy.
Politicians think short term and don’t want to be blamed for job losses, especially in an era where good paying job growth is non existent. My solution would be to have majority government terms extended to 10 years. Like that, governments get to make sound long term decisions and have more time early in a mandate to make the unpopular decisions.
We could consider it if it wasn’t for a piece of sh!t polluting industry.
Nuking Alberta would probably be a better long-term decision.
What do you think those planes BBD makes fly on? Unicorn tears? The polluters are the end consumers of fossil fuels which is pretty much the same Quebec vs Alberta. If Alberta just stopped mining oil sands tomorrow, others would pollute to fill the gap. Its nonsense. In other Quebec business news today, engineering giant SNC Lavalin has been formally charged with corruption and fraud in connection with alleged illegal activity with Ghadafi in Libya (same company that promoted Ghadafi’s son’s art tour and bought him a Toronto Penthouse). The good news politically is that its their Libyan operations being implicated and the company has so far skated clean on the McGill hospital fiasco, other than their former bagman who’s sitting in jail. SNC said to be looking for a reasonable compromise. Not sure they understand that in Canada criminal activity isn’t negotiated off like in some other places.
Speaking of SNC Lavalin, I always thought the corporate folks over at AltaLink were shady. I bet Buffet’s happy he bought them from SNCL =)
Dude why are you so traumatised about Quebec ?
You seem to think that we are as corrupt as Sicily or something.
^ Not as bad as Sicily, but things like this do tarnish the reputation of Canadian firms. And the Bombardier family charity fund ultimately flows out of my pocket. Ultimately, its an issue of fairness. I like Quebec, I like that they’ve got their distinct culture, language and way of doing things. That’s cool. It just doesn’t fit with the way things work in the west. And its unrealistic… the Quebec social engine couldn’t be running without oilsand profits flowing into it. Its like the brother in Alberta busting ass and making money while the artist brother sponges off him yet claims to be distinct and successful. It’s time to move past this stuff and have provinces assumes more responsibilities for their own fiscal affairs. Quebec should be free to do as they please, on their own dime. At the end of the day I’ve thought for a long time that Canada is really an injustice for everyone involved. Out west we can’t put aside money from our resource revenue because of provincial migration and equalisation. In Ontario when oil is booming their manufacturing is crushed by Dutch disease. Quebec can’t fully implement their socialist desires. And the East is stuck in an equalization induced culture of defeat. Its kind of a losing game for everyone involved. Quebec just drives me nuts with this ethical crap and political control thats very un-Canadian. Just look at the SNC comments yesterday. Hey, can’t we just pay some money and we all just move on? No. Thats not our values as a country.
As much as governments have no clue when it comes to picking winners and losers in the economy, they are just as clueless when it comes to foreign affair (military) policies. Yet, every single decision is analyzed to the penny in the former case while a blank check is given in the latter.
Giving welfare checks to Bombardier is wasteful…just as much if not less than spending on a conflict with no clear definition of what is considered a successful mission, using no predefined budget and having no timeframe. Just give a blank check to your government, close your eyes and trust them. The government is incompetent in every other matter, but when it comes to military conflicts they can get everything right from destroying the enemy to knowing what the consequences will be after the enemy is eliminated to knowing if the people filling in the vacuum will be better.
And speaking of values of our country, mine does not include undermining individual freedoms under Patriot Act 2.0.
Well, Bombardier exec turfed for alleged bribery in Benelux. Says he is not a crook: http://www.financialpost.com/m/wp/blog.html?b=business.financialpost.com//news/transportation/bombardier-inc-exec-dismissed-reportedly-linked-to-bribe-scandal-in-europe-i-am-not-a-crook Stock is down 68% since I suggested OP avoid this one.
I have to admit, at these levels I would consider buying Bombardier
They might just do the classic restructure and burn all existing shareholders.
Because of the closely held family involvement I doubt that would be the case.
Ghibli - Can I expect a Christmas card this year from you? What a disaster BBD is. The only thing that keeps them from bankruptcy courts at this point is gifts from taxpayers. Yet they retain their awful governance model. This company has no equity value at this point.
I have to agree with Geo. They had ample opportunities to save themselves but the management team was just aweful. I’m not convinced the new one is any better and the fact that the family ownership is allowed to exist despite the first bailout blows my mind. What are they thinking up there in Canada? Just another Blackberry at this point, failure to make hard choices and failure to properly grasp the market. It started when they lost the regional jet market share to Embraer by misjudging the shift to larger aircraft and then continued when they tried to step into the C series niche. If they had half a brain they’d sell the train division to either Siemens or Alstom in an attempt to compete with China Rail, but I’m giving up on that as well.
The door is closing on the C series. the A320 and 737 have loaded up their order books and now what’s left is scraps.
I wouldn’t give up on them. They have a huge potential. They can at any time switch to producing maple syrup and skyrocket.
With the advent of A320 neo, purchasing a C series doesn’t make sense.
A fundamental flaw in the C series model: The C-series (like all of le Bombardier oh la la models) uses a lot of composites (more than A320 & B737).This enhances the pressurizing of the cabinet. So either you can fly higher (cheaper routes and more route options), or make the cabinet atmosphere more comfortable. This is great for bizJets; but the C-series is marketed as a regional aircraft. Regional aircrafts don’t normally fly high ( 35k to 40k ft). And they don’t care if their passengers breathe better. They just want the engines breath better for higher fuel efficiency. The business model of regional aircrafts is “F@#k the passengers high in the sky, with a smile”. Canadians are more polite than Europeans and Seattleites to follow this business model.
Yes, the primary purpose of composites in aircraft is to improve cabin pressure 
and THAT is bombardier’s primary problem.
My buddy (who’s a teacher) bought it at $0.96 and told me if it hit $180 he would become a millionaire. He sold it less than a week later at a loss at $0.94 because he couldn’t handle the stress. Now over $2. Just goes to show you how emotional discipline is just as important as making the right call.
My coworker bought at $0.89 and is holding until it hits $4, which is the next big resistance level.
Near term, I like them.
Long term I don’t like Bombardier. They still have to produce the planes and lord knows what pricing hit they had to take on that DAL deal (assuming they get it and its as large as expected) and rumor is Delta may be pushing for a CS500 as part of the deal. Long term I think the pricing concessions they’ll make will hurt the margins and the rails are going to become increasingly uncompetitive due to their own ineptitude and unwillingness to sell the unit in consolidation against China rail.
Basically, I expect a Big pop this year followed by a long fade over several years.