Debt reduction and dual ownership First of, all division are doing well. New orders are keeping backlog above 1.0, aircraft build rate is at or above set target and aftermarket sales is booming and growing each quarter. The only negative and the one that matters the most is debt. Until debt is reduced, Bombardier will be speculative buy. Yes Bombardier is tracking better to their plan but they are still heavy on debt.
Dual ownership is also keeping institutional from buying. Most institutions have their internal regulations preventing them from buying funds where their vote doesn't matter. Think it from an institutional point of view. If they invest their money or their clients money in a company then they trust that company to make the right decision. If institutions dont agree with company decision then through enough support from board of directors the institutional can make changes based on their clients requirement. This cant be done with Bombardier and it leaves institutional at mercy of Bombardier family decision making skills. Institutions can be liable if they took their clients money and invest in such companies where they dont control decision making. Institutions can also be liable to their shareholders if they invest in companies where they have no control or say. Its labeled as negligence.
I am not posting this to debate if dual ownership is good or bad but why you shouldn't expect institutions from buying. The big debt will also prevent institutions from buying. Bombardier has negative net worth which is also good reason for institutions to stay away.
What Bombardier needs to do is pay down their debt every quarter. Yes they dont have any debt/bond due but they need to pay of partial whatever whenever they can. Bombardier owes.more then its worth as a company. And that is why you will see no institutions buying and will see irrational sp movement. For me this is speculative buy for big gain. This is an endurance race not a sprint.