Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Bombardier Inc. T.BBD.A

Alternate Symbol(s):  BDRXF | BDRAF | BDRBF | T.BBD.B | T.BBD.PR.B | T.BBD.PR.C | T.BBD.PR.D | BDRPF | BOMBF

Bombardier Inc. is a Canada-based manufacturer of business aircraft with a global network of service centers. The Company is focused on designing, manufacturing and servicing business jets. The Company has a worldwide fleet of more than 5,000 aircraft in service with a variety of multinational corporations, charter and fractional ownership providers, governments and private individuals. It operates aerostructure, assembly and completion facilities in Canada, the United States and Mexico. Its robust customer support network services the Learjet, Challenger and Global families of aircraft, and includes facilities in strategic locations in the United States and Canada, as well as in the United Kingdom, Germany, France, Switzerland, Austria, the United Arab Emirates, Singapore, China and Australia. The Company's jets include Challenger 350, Challenger 3500, Challenger 650, Global 5500, Global 6500, Global 7500 and Global 8000.


TSX:BBD.A - Post by User

Bullboard Posts
Post by jammerhon Jul 25, 2010 2:38pm
593 Views
Post# 17295358

You don't need to worry about CSeries

You don't need to worry about CSeriesDoes it really matter if C Series gets its next order here, or somewhere down the line?

There will always be critics for every new and innovative product that comes along.  History is replete with examples:

* At one time many people believed the earth was flat.

* At one time they believed the sun revolved around the earth.

* Thomas Edison was heavily criticized for trying to build a light bulb.

* The Wright brothers were heavily criticized for being naive enough to think they could actually fly.

* Laurent Beaudoin was heavily criticized when he, together with Bombardier's newly acquired Canadair developed the regional jet...

Truth isn't determined by the number of people who believe a thing. And long term results aren't determined by short term thinking. In fact, it's often when you know something others don't know that creates a prime buying opportunity. 

People are often wrong, and they're often very wrong in droves. We can see many examples of this throughout history. You don't have to study the trials and tribulations of humanity very long to realize it often consists of large groups disagreeing with each other. It's the kind of thing that builds movements and countries and it's the kind of thing that can result in conflict and even war.

Bombardier will succeed. C Series will succeed. Bombardier is often cited as the third largest aerospace manufacturer after Boeing and Airbus. It's actually about 1/4 the size of Boeing in terms of capitalization, but then Boeing and Airbus have huge military and space units. Even tiny Embraer gets a significant portion of its income from military and space projects.

These military and space units help those competitors indirectly by funding large projects which not only support them directly, but also pay for important research and development which somehow and very mysteriously (some would suggest it actually isn't all that mysterious) finds its way into the development of commercial jet aircraft.

Many investors clamour for orders. More orders makes the stock price go up. But is it really that simple? You might want to ask yourself if what you want is a company that dances to the tune of what investors want, or do you want a company that tries to do what is best for its long term success?

All aircraft manufacturers offer discounts to move aircraft. Boeing, Airbus, and Embraer know C Series is on its way. How much of a discount is offered depends on how low that manufacturer believes it has to go to get the order. That Bombardier isn't interested in giving C Series away to keep the ball rolling is probably a good thing. It's an indication they're confident interest is strong, and this airplane's features will sell itself.

At some point over the next year or two deliveries dates for C Series will grow closer to those of competing alternatives such as 737s 320s and 190/195s. Airbus, Boeing, and Embraer know that and in anticipation of a groundswell of orders for the newer, quieter, cleaner, and more fuel-efficient C Series, they are now discounting their aircraft in an effort to soak up as many orders as possible.

But airlines are aware of this too and for the most part they're waiting. The smarter ones are aware they could be being baited into bulking up on older, dirtier, less fuel efficient aircraft from C Series' competitors at a time when newer, cleaner, quieter, and more fuel-efficient airplanes are becoming more important than ever.




Bullboard Posts