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Bombardier (BBD.B)

240K views 926 replies 129 participants last post by  Covariance 
#1 ·
Read an article about this stock the other day,, after reviewing it and seeing its down quite a bit I thought maybe a good buy? But i'm also a complete newb to the market. What does everyone else think?
 
#36 · (Edited)
It's been a good week for the Aerospace & Transportation arms of BBD.B!

Bombardier Wins Contract to Supply 260 New Metro Cars for the San Francisco Bay Area

Bombardier is transforming how people get around every day. Worldwide, more than seven billion trips are taken on Bombardier metro cars every year, from Boston, New York, Montreal, Toronto and Mexico City to London, Paris, Berlin, Delhi and Shanghai. Bombardier’s current North American metro car orders include 706 new cars for Chicago, 420 cars for Toronto, 468 cars for Montreal, and 300 cars for New York.

http://www.bombardier.com/en/corporate/media-centre/press-releases/details?docID=0901260d80219a7f

http://www.bombardier.com/en/transp...press-releases/details?docID=0901260d80212faa
 
#38 ·
I decided to pick up a few of these.

It is more levered than most of the investments I typically make.

I do like their technology and innovation. I like the valuation of the company. The yield is decent but unspectacular. They seem to have a solid slate of orders to ensure profitability for the next while. They have a good, skilled labour force.

But mostly I really like them because the valuation is so good right now. It appears to be off its bottom and there are catalysts in the air so I'm happy to ride this one for awhile and maybe add some more if it dips to 3.60 or so but I doubt that happens.
 
#39 · (Edited)
I am still underwater with my BBD.B shares (1500 at $4.69) and I am thinking about what my strategy should be for this stock.

I bought this stock in January 2011 at $5.00 after reading into their C-series project. The stock then jumped up to a high of 7$ to a low of $3.67 in the span of 9 months. I averaged down to $4.69 during this period.

Fundamentally, I like their business, and I think they will be successful in both their airplane and train divisions. I see their stock going above $5 in the long run.

Technically, the stock is very is volatile. Google finance puts the beta at 1.43. Hence the stock tends to rise and drop faster than the TSX. If we compare BBD.B to the TSX for this year (Link), BBD approached near $5 in February, outpacing the TSX, and then dropped right back with all the stuff in Europe. Right now, it is rising above the index with all the news of orders coming in and the air show that is going on right now.

As some people in this thread have mentioned, the stock is very tradable. I am thinking of whether or not I should try and execute a trading strategy. At the moment, things are looking rosy for BBD, but that can change fast. Downward pressures include a lack of sales for their planes at the show, delays in the C-Series development, and significant sales made by their competitors. There is also the overall world economic outlook which, when it turns sour again, will most likely drive the price down.

So if I am looking to trade around 1000 shares of this stock, what would be a good strategy? I am thinking of setting up a trailing stop of around 3-5% at this moment to sell for at least $4.10. I would buy back when the price is near $3.80. Does this make sense? Should I be using a trailing stop or set a price at which I will sell? Do you think the price will drop below $4 when the markets turn downward again? Any comments or suggestions would be appreciated.
 
#40 · (Edited)
To answer your last question, I never thought the stock would drop below $4, but it did & might again! However, by having a mixed strategy [buying/trading] for the last couple of years, I was able to benefit short & long-term.

Had you booked some profits when the stock went to $7 [from $5], as well as traded it when it dropped to $3.50, or -50% just this past Dec., you might have recovered some of your unrealized losses by now as the stock has indeed been very volatile, hence tradable!

My approach has been to trade in tranches as this addressed the directional scenarios, ie: I would buy 2 or more blocks at different prices/would then sell one block/ then used the returned capital [+ profits/or use this somewhere else] to cover my next purchase when the price went down, etc. Given the general market volatility, at any given time, I may have 3 or more tranches of a particular stock on an ongoing basis [of very volatile stocks that I don't feel are falling knives ofc], and this way, I was able to take advantage of most market rallies by selling the profitable block [not necessarily DCA'ing as this strategy works best not for short-term trading necessarily, but for long-term investing].

The only time I would sell all blocks at the same time, would be if even after the DCA average, the profit would still be worthwhile. For example, say I had 1500 shares at an ACB of $3.80, then I might sell all today for $4.22 as the profit would be $630 [- comm.]. But if my ACB was above $4, I would just sell the lower tranche. The profit would be slightly less by not selling all, but then you would have another block to sell if shares were to go higher the day after you sold.

However, I would not recommend this approach to anyone who is not comfortable trading.
 
#41 ·
I bought BBD.B for $3.95, than it spike to $4.30's, than fell down to 3.60s... Didn't averaged down at 3.60s as didn't have money available and just was scared :)
Don't know exactly what I gonna do with it, probably will sell if it goes up to 4.30's , if it goes down - will be just pationately waiting and collecting dividends (yield is not bad , close to 2.5% and better than any GIC)
 
#42 ·
1. Didn't averaged down at 3.60s as didn't have money available and just was scared :)
2. if it goes down - will be just pationately waiting and collecting dividends (yield is not bad , close to 2.5% and better than any GIC)
1. Take a TR ride & maybe your fear will dissipate. :biggrin:
http://en.wikipedia.org/wiki/Toronto_Rocket_(Toronto_subway_car)

2. At first, I thought you said 'passionately', LOL. Yes, patience is important! What are you gonna do with your fat dividends you received on July 3rd? :) Definitely better than a GIC. :rolleyes2:
 
#44 ·
TORONTO, ONTARIO--(Marketwire - July 8, 2012) - Bombardier Aerospace announced today that a new customer, which has requested to remain unidentified at this time, has placed a conditional order for five CS100 and 10 CS300 jetliners.
Based on the list prices of CS100 and CS300 aircraft, the contract is valued at approximately $1.02 billion US.

Hopefully the day-traders are gonna keep their bbd.b stocks for a while!
 
#53 ·
Yeah, this thread made me look into bbd (I never know WHAT to look at so I just see what other people are talking about and try to come to my own conclusions) and it seems...undervalued? Looks as if its been good news for the past few months that has only lead downwards. With all their new projects is there some other reason the stock has been dropping?

I just sold my suncore today for a 5-6% profit in the last 3 days and am looking for a new train to jump on :D
 
#54 ·
This stock has been taking a pounding lately.

Their core businsses seem to be reasonably strong. Is this a reaction to current projections of weakness in the world economy, a reaction to the pending and now confirmed PQ minority government or something else?

I am inclined to buy a bit more here. My ACB is 3.91 so I'm a bit in the red but not enough to stress me out in a company that is functioning well presently and projects to do well into the future.

Any other perspectives on their recent decline?
 
#55 ·
I'm actually somewhat surprised that shares have hit the lows of Dec. 2011.

I think everyone is eagerly & impatiently waiting for the CSeries to finally start flying, which will happen later this year [assuming no delays]. Only virtual flights have taken place:
http://www.bombardier.com/en/corporate/media-centre/press-releases/details?docID=0901260d802446e7

If everything goes according to plan, and if all that has been written about the new plane turns out to be true, ie: the fuel consumption of 20% less than its competitors, etc., the stock should start moving up. From all official press releases that I have read, the company has received numerous orders, however, only about 1/2 of them are considered firm orders thus far, so if the other 1/2 materializes in near future, the stock should do well in the next couple of years IMO.

Business/Commercial Aircraft Market Forecast : 2012-2031
http://www2.bombardier.com/en/3_0/3_8/market_forecast_BA/index.html
http://www2.bombardier.com/en/3_0/3_8/market_forecast/index.html

Then of course there is the transportation arm of the company as well.

A very difficult & competitive industry for sure, so much so, that it seems some carriers are giving deep discounts to win orders.

"Boeing and Airbus are locked in a global contest for market share, in some cases more than halving prices to bolster orders of the newly revamped models of best-selling narrowbody jets".
Source: http://www.reuters.com/article/2012/08/28/us-philippines-airbus-pal-idUSBRE87R04120120828

Maybe BBD.B does not give deep discounts. :)
 
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