Am I surprisedBBD hit a high of $2.97 yeaterday and closed at $2.73.. Today, it reached $2.77 and it is now at $2.64. It looks like it will keep going down. I feel sorry for the longs as sometime they are so optimistic about the future that they do not see an opportunity to make money by selling when it is time to do so.
I do not have any BBD stock anymore as I do not see this deal with Airbus as very good news. It is an extraordinary deal from the point of view of Airbus but not from the point of view of Bombardier.
I wish Bombardier had waited for a final decision, next Spring, regarding the 300% taxes. Afterall they have been telling us that Boeing had no case. I wish they had negotiated with both Boeing an Airbus, playing one giant against the other to get a much better deal.
I hate to sound pessimistic, but to give away 50.01 % of the CSeries to Airbus with a commitment to invest an additional $700M does not sound like a good deal to me.
Hence, am I surprised that the SP is dropping, not a bit. I feel it will likely keep going down and possibly reach the low $2.25 range.
Am I going to buy back, I am not sure at this point. I will see what happens in the coming months. If there are no major sales resulting from his deal, I might be out for good.