My bullish - kinda post. Airbus stocks are down, boeing are down, bbd obviously is way down.
Why? Airbus and boeing IMO are selling themselves into a backlog. The sales margins are fractions of what they used to be. If you dont beleive me check out the results for yourselves. These margins will carry themselves on for the new year at least. There are alot of contracts out there for deliveries 2+ years ahead. A company can only manufacture so fast on discounted prices. If the margins dont fit then it is hard to increase production, while maintaining them. Alas. the catch 22.
What will happen with airplane fuel futures, and go green initiatives from governments across the planet? Could it be that a greener lower useage airline would be subsidized by way of a lack of carbon tax? Maybe. Who is the greenist 100-150 seater?
You guessed it.
Now in respect, all of us are watching our stocks if we have them very carefully. This is certainly not my main, but it is the most entertaining. The cash i have in will be a gainer. But i have an aps i waited along time for. bbd is completely undervalued, and solely emotional. Fools that sell for a loss at 1.18 - 1.24 deserve to just go away. I wont support you, help you in anyway. I will take your shares if i can, but im not going all in either.
Welcome to the canadian financial system people. Grow some nuts, get some grit. And see what happens.