RE:Half a billion dollar train contract awarded to BTIn my 18 years investing in Bombardier I do not recall a single time when an important train contract impacted in a major way on the stock price. Sometime, contracts impacted negatively on the SP moving into the red once the contract was announced.
I often asked opinions as to why 1billion train contract has little impact if any, on the SP but 1 billion plane contract might push the SP up by 5 to 10%. I never received a good explanation as to why. It is illogical but this is the way it is.
I do not want to rain on the parade but I think it is going to be more of the same with this train contract. On the other hand, it is going to be hard to determine if it is the recent sale of the A220-300 to Jetblue, the expected additional sales at Farnborough, or this train contract moving the SP.
I would hate to be wrong about this contract impacting on the SP in a positive way but that has been the case in the past. The only reasonable explanation that made sense to me is that the profit margin is so thin that it hardly impacts on Bombardier's bottom line.