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Also a good illustration of how government stimulus boosts the stock market. These companies have received enormous sums of money from the US govt.

And myself, working at small company which was downstream from US government spending, also benefitted. Where did I put that excess money in my pocket? The stock market. The money originated from government, though it changed hands many times of course.

Frankly I'm not sure there would be much of a US economy (and North American economy) at all if it wasn't for US government spending. These hardcore conservative capitalists at CMF have government spending to thank.
Interesting discussion, but the US is much less dependent on government spending than Canada already. You do know the % of GDP that government spending accounts for in both countries, yes? And Canada already has no shortage of government supported businesses. I believe that decades of mismanagement has clearly demonstrated why Bombardier should not be given more billions of taxpayer dollars. Maybe those billions should be given to companies that can make trains and planes that people want and work first? Or just flush it down the toilet.
 

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Also a good illustration of how government stimulus boosts the stock market. These companies have received enormous sums of money from the US govt.

And myself, working at small company which was downstream from US government spending, also benefitted. Where did I put that excess money in my pocket? The stock market. The money originated from government, though it changed hands many times of course.

Frankly I'm not sure there would be much of a US economy (and North American economy) at all if it wasn't for US government spending. These hardcore conservative capitalists at CMF have government spending to thank.
Things are going well in spite of, not because of government interference.
 

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There are apparently talks going on between Airbus and BBD for Airbus to buyout the entire A220/C-Series program.
Considering the program cost 6Bil to develop and Airbus got it for free, I would think such a buyout would be in the billions.
 

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There are apparently talks going on between Airbus and BBD for Airbus to buyout the entire A220/C-Series program.
Considering the program cost 6Bil to develop and Airbus got it for free, I would think such a buyout would be in the billions.
It better be....with $10B of debt on the books. They will still need to sell their business jet business OR the rail business to fix the balance sheet.
 

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Looks like a done deal. 770M I think.
Quebec still owns 25% of the program and can't be bought out until 2026. They might actually make money on their 1B 'investment'
 

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... The only time I recall flying on a CRJ was ironically United airlines./QUOTE] ... I've flown in the CRJ but forget where that was. It was a nice aircraft.
I flew on a CRJ every week on AC from Toronto to Washington for about five months in 2001. Then again in 2005 from Ottawa to Chicago.

Not so far for a US carrier.


Cheers
 

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BBD.B is tanking even more than the market, down 12% today so far

I have used technical analysis for many years, and have learned what a dying company's chart looks like. I don't like saying this guys but the stock price is acting like Bombardier is reaching a terminal event.

This is one of the worst charts I've seen of any major company in Canada. The charts are not predictive, but they help "read" what the rest of the market thinks of a company.

And this isn't a new situation. The chart has looked horrible for a long time. This is what I wrote more than 4 years ago, and the situation is no different today:

The multi-year price action on Bombardier is horrific. This is the chart of a crashing stock on its way to delisting.

If you hold the stock, my advice is to mark it for disposal and to GET OUT (maybe over a month or two if you're unwilling to sell at the current $1.25).

I've posted before that if you hold a portfolio of individual stocks, you have to actually monitor and re-analyze them... Bombardier is an example why. When it looks like it's actually going to collapse to zero, you must get out of a stock.
 

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For the first time in a while, Bombardier is above its 200 day moving average. From a technical perspective, this is now looking somewhat bullish.

I'm tempted to go long as a pure speculation, part of the "central bank induced rally in everything" trade / gamble.

You might wonder how I can write this after my above comments, so I'll add (1) intense pain and capitulation has already occurred, (2) insane central bank stimulus is pumping up all assets, (3) junk bonds have rallied like mad and borrowing costs have plummeted, even for distressed companies, and (4) I'm viewing it as a gamble, kind of like buying Bitcoin, except this one is actually unpopular

Anyone long?


21154
 

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Hmmm I made some good money on it a few years back, thank you James for bringing it back on my radar. I'll read on it a bit more and come back with a conclusion.
I'm sticking with my speculative long. I feel neutral about it but I don't have much to lose with my tiny position.

Bombardier's borrowing costs are down significantly and the sector might actually start recovering this year.
 

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I know your comment above says it is a speculative play. For many reasons Bombardier has historically been protected by government bailouts so IMO that does limit some risk. I find it interesting that you list it as a potential bankruptcy candidate elsewhere on this forum. I believe you are just outlaying the risk of owning the names below. High risk High Reward. I looked at buying Sheritt years ago but for whatever reasons I did not buy. The thing about looking at so many companies is you miss just as many winners as you do losers.


The ones that come to mind are Bombardier, ShawCor, and Sherritt.

I think it's already priced into their equity and debt rating, so this isn't exactly news. I hope they pull through.
(6) Bankruptcy Candidates | Canadian Money Forum
 

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I know your comment above says it is a speculative play. For many reasons Bombardier has historically been protected by government bailouts so IMO that does limit some risk. I find it interesting that you list it as a potential bankruptcy candidate elsewhere on this forum. I believe you are just outlaying the risk of owning the names below. High risk High Reward. I looked at buying Sheritt years ago but for whatever reasons I did not buy. The thing about looking at so many companies is you miss just as many winners as you do losers.
Yes, I do think Bombardier may go bankrupt. Even if the government bails them out, why would the share prices hold up? A proper bailout should wipe out the equity, more or less.
 

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Bombardier reports earnings tomorrow. Today it rallied 14%... I'm not thrilled to see a stock rally into earnings, but we'll see.

This will be a minimum 1 year holding for me, so at this point, I'm just along for the ride (selling is not an option). In a year, I will evaluate whether to keep holding it.
 

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Surprised nobody has said a peep about this. Surely people would have been interesting this as a 'recovery' play, post pandemic? Bombardier is both sensitive to airline sector conditions, and financing conditions. Both have been steadily improving.

BBD.B just went above $1. Since my post with the chart above at 0.60, it's now up 70%
 
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