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Discussion Starter · #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?
 

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I wouldn't personally buy it.

However, if you bought a few thousand shares, it could be a profitable trade or a profitable long term hold.

I'd say you would need to buy at least 2000 shares for it to be worthwhile.

And then if things don't go your way, you might be out the money. :(
 

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Discussion Starter · #4 ·
I wouldn't personally buy it.

However, if you bought a few thousand shares, it could be a profitable trade or a profitable long term hold.

I'd say you would need to buy at least 2000 shares for it to be worthwhile.

And then if things don't go your way, you might be out the money. :(
Why so many shares for it to be profitable
I bought 260 :|
 

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260 is fine if you are talking longer-term.

I meant 2000 for trading purposes, to get in quickly and get out quickly.

The problem with 260 shares is that if it bounces between $3.50 and $3.90 for a while, and you bought in at $3.65, there's not much profit to be made and your money could be better used elsewhere, especially since the dividend is around only 2.6% right now. There are a lot of companies paying upwards of 4% right now with stable business models and steady cash flow.

From 3.65 to 3.90, you'd make a profit of $65.00 before commissions on 260 shares.

From $3.65 to $3.70, you'd make a profit of $100.00 before commissions on 2000 shares.

See what I mean? It's a lot easier to have the stock go up 0.05/share and cash out for almost 1.5x the profit, as opposed to having the stock go up 5x as much, for only 65% of the profit you could have made with the 2000 shares.

Obviously, losses are magnified with 2000 shares, as well.
 

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Obviously, losses are magnified with 2000 shares, as well.
Precisely, so if you're not comfortable trading & don't know the stock well, don't even consider such numbers.

Great company IMO, but aerospace/transportation is a very tough business for obvious reasons & also BBD.B has very tough competition from other giants in the industry, so not a stock to buy/hold in this market, unless you're patient.
 

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it has been several years now since i ever held any interest in bbd but the usual politics probably still prevail.

aerospace division is still & always has been problematic. Brazil's embraer got way out in front with their successful rj (regional jet) models nearly a decade ago & they've kept leading market share.

both countries - canada & brazil - subsidize their respective aerospace corporations heavily, in flagrant violation of trade rules, so both countries snipe continuously away at each other through gatt tribunals, diplomacy & just about any & every venue they can think of.

what this has meant for bombardier is that it's been riding on the sturdy earnings back of its land transport division - mostly railcars - for many years. I haven't kept up on the news but from afar it seems they keep on winning contracts, work on cost economies, have & have held a global footprint for many years now.

exotic tidbit: it's bombardier railcars that make up the new train that runs from china to lhasa, tibet, just as canada's engineering firm snc lavalin was one of the principal engineers for the tibetan chemin de fer. Apparently this train has to pass over vast areas of bottomless swampy muskeg. There was no way to reach bedrock in order to build supports for the train tracks. The solution was to permanently freeze the muskeg. Evidently a network of freezing pipes was installed all through it.

this can give rise to all sorts of entertaining & not-so-entertaining stories, if one stops to think about it. Tibetan nationalists in particular oppose the new railway because they understand very well that it will bring a vast new immigration of ethnic chinese han people into the isolated mountain kingdom, and this will in time overwhelm & gradually destroy the native tibetan culture ...

back to bbd, there is a certain floor under the common stock, in a sense, because ottawa will never allow this star in the national aerospace crown to fail. Otherwise what one is really investing in is a manufacturer of rail cars & locomotives, including urban transit system modules.
 

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Discussion Starter · #13 ·
Been holding this for a while now and it's finally paying off. Bought at 3.88
not sure to sell or to hold on and see what happens
 

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Bbd.b

Last week bought BBD.B for $3.95. I think BBD.B under $4 is a good price. This company strongly supported by government and planes/trains will be always needed. Now Toronto discussing what to build : subway or light train. imho BBD can get nice work order from Toronto and it's good for the stock.
I'm thinking now to keep BBD.B for a long term or sell it on way up.....
What is your opinion on BBD.D future? Anyone holds is for long term?
 

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This stock looks tricky to me - good earnings but tons of debt, negative free cash flow, declining book value per share, low margins on sales and heavy competition. I understand there has been limited uptake on their new regional jets and this will hurt them for the next decade if they don't break into this space stronger.

They don't seem to have sold my commercial airplanes yet and they will need this to feed into their growing service and spare parts division which is the growth side of their business.

I'd sit on the sideline until there is more evidence of traction in airplane sales.

I'd also prefer a price more along the lines of 3.50.
 

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BBD.B is a momentum stock that tends to peak during the Paris air show, this year it's June 17-23rd. Definitely not a buy and hold stock as witnessed by any chart - a swing trade stock yes. Once it's on a roll I usually add on to the pile until the momentum is exhausted then sell off.
 

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Today Benj Gallander gave to BBD.D Top pick....:encouragement: maybe another lift to stock?!
I've heard about Paris Air show .... but this one still 2 months away... maybe I'll just set some stop limit sell to lock small gain and let it ride...
 
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