I fail to understand the current optimismAfter hitting a low of $1.96 at opening, last week, this stock has now climbed back to $2.26. Yes, I know that Bombardier confirmed the sale of Q400 that had been negotiated last June but one woud think that this had already been factored in the currrent price. The confirmation of this sale was certainly not a big surprise to anyone.
Even another huge sale of Q400s would not make up for the import taxe of 220% for the Cseries and the fact that the two Europen train makers are now teaming up together. I have serious concerns about Bombardier being able to compete against them and the Chineses on future train contracts.
The bottom line is that I see little optimism for this stock to go further up or stay at the current price in the immediate or near future considering the additional 80% taxe that is likely going to be announced on October 4th regading the dumping chages against Bombarider.
I am a buyer @ $2.00 but not @ $2.26 as I do not see anything sustaining the current price.