Bombardier Inc., together with its subsidiaries, manufactures and sells transportation equipment worldwide. The company operates in four segments: Business Aircraft, Commercial Aircraft, Aerostructures and Engineering Services, and Transportation. The Business Aircraft segment designs, manufactures, and provides aftermarket support for Learjet, Challenger, and Global business jets. The Commercial Aircraft segment designs and manufactures a portfolio of commercial aircraft in the 60- to 150-seat categories, including Q400 turboprops; the CRJ700 regional jets; and C series mainline jets, as well as provides aftermarket support services. The Aerostructures and Engineering Services segment designs and manufactures aircraft structural components, such as engine nacelles, fuselages, and wings; and provides aftermarket component repair, overhaul, and other engineering services. The Transportation segment offers a range of products and services in the rail industry, including trains, subsystems, system integration, signaling, and e-mobility solutions. The company was formerly known as Bombardier Limited. Bombardier Inc. was founded in 1942 and is headquartered in Montréal, Canada. (Source: Yahoo Finance)
Bombardier received a loan from the government in the past year. This outraged a lot of people as they believe it is corporate welfare. The company struggled enormously during the last few years which lead to them eliminating their dividend a couple of years. Bombardier was getting behind on orders, which lead to disgruntled customers.
I owned shares in BBD-B.TO for a few years at a price of $3.60 per share. Over the past couple of years, the company struggled and this has been reflected in the stock price. The stock fell to $0.72 per share but has slowly rebounded.
The stock has shown some upward momentum due to the issues with Boeing and the US government. The US government wanted to impose a tariff of appromiately 292%. Bombardier has a surprise win in a trade dispute with Boeing over the sale of it's C-Series passenger jets to Delta Airlines. You can read more about the story here.
Conclusion:
I believe rise in the stock price will not continue. As Bombardier is unable to meet the production dates with some clients, the company will be negatively affected. Therefore, the stock price will likely reflect the negative events that the company deal with.
Last night, I put in a stop limit order to sell my 1000 shares of BBD.B. I sold 1000 shares of BBD.B at $3.95 per share. I only received one dividend why being a partial owner of BBD-B.
I will attempt to put the money back to work for me in the next couple of weeks.
DISCLAIMER
I
am not a financial planner, financial advisor, accountant or tax
attorney. The information on this blog represents my own thoughts and
opinions and should NOT be taken as investment or business advice.
Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk.
Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk.
Congrats on waiting and selling at over cost. This stock has been everywhere the last yr.
ReplyDeleteLook forward to seeing where you deploy the cash.
Cheers.
Thanks for dropping by. My margin was reduced to around $4700. So with a 6.9% margin interest rate, I think if TD or RBC drop some I would strongly think about starting a position. The yield will be lower but the Canadian banks are safe investments.
DeleteI am adding to my TFSA right now, until I buy or add to a position. Then I start to add cash to the margin account.
Imagine if you had stopped out under a dollar? You would be so pissed right now! Patience always pays off. Not much of the return, but did not realize a loss either! Good call! I like Bombardier as a company, but not a stock. They look pricey at almost $4/share. Last October they were about $2/share. Gotta put that cash to work while the market is in recovery mode. Anything on your watchlist?
ReplyDeleteDividend Income Stocks,
DeleteThanks for dropping by. It was hard too stomach it falling under $1 per share. I definitely would not be a buyer at these levels.
TD, RBC, WestJet, Pizza Pizza, and A&W Royalties Fund. TD and RBC have the strongest consideration.