Bombardier Inc. T.BBD.A

Another tough day?

[Luckyeleven]

The Futures made a dramatic swing his morning of about 600 point. They were deep in the green and have now swung deep in the red. CPI report came out and ruined the party.

The core consumer-price index, which excludes food and energy, increased 0.6% from a month earlier and 6.2% from April 2021. The broader CPI rose 0.3% from the prior month and 8.3% on an annual basis, still among the highest readings in decades. The core CPI was projected to rise 0.4% from a month earlier, while the headline gauge was seen climbing 0.2%, according to the median estimates in a Bloomberg survey of economists.

[Shamhorish]

yes, i think we will expirience tough time till bbd and union sign new contract and fear of strike goes away then, again tough time will not go away till bbd get the authorization to do RS then bbd may still get tough time after RS then when large insitution start buying in and holding millions of bbd shares, bbd will regain value  imo,  this may take 3 or 4 quarters

[Luckyeleven]

Don't think it's as much as bomber specific. S&P having the second worse year since 1932 since the beginning of the year. That's tough to overcome. Energy about the only place to hide right now. 

[BBDB859]

Sorry just got back in LE. If this is directed to me LE? Thanks for the response to my question as to whether this affects the Bomber. It would be nice for new posters to hit the Quote button at the bottom of the posters post, that you're responding to, NOT the Reply button. So there is no confusion as to the poster's post that  you're replying to. Very interesting what's

[BBDB859]

Hey Lucky. In your opinion. How can this report on the Futures fluctuation & the CPI Index increase today have a bearing on Bombardier? You may wanna elaborate. I'm leaving right now. But I'm back this afternonn. I wanna read your post, if you feel up to explaining things. Please put the past behind us here. We need to move on.

[Luckyeleven]

Forces the FED to increase rates quicker and with bigger hikes. It effects almost everything and everyone and yes even including the bomber. You need higher wages to combat inflation as well. IN this environment like I stated earlier being the second worse year in history so far that investors are running to safety and Bombardier is not viewed as a safty stock or a protection mechanism. When

[Truthifest]

Macro is still in control of this stock, as it has been for half a year now. While the wealthy individual customers are not impacted as much as others regarding inflation, price still matters, as does their wealth, which is rapidly declining with the stock and bond mkt bubbles bursting.   And the corporate customers, also a biggie for the company, have to be getting weary of such a major

[bago]

 I have to agree. Sooner or later if Bombardier keeps  reporting good numbers it will be hard to ignore. For now  this is one tough market and still think they should still do some realigning of the share structure to show the market this is a different company than it has been in the past. 

[BBDB859]

You're right Bago, that split has to happen. They've got to get out of the penny stock territory. The point here is the type of a split. A 5 for 1 or even a 10 for 1 is ok. But this 25 to 1 split is rediculous IMO. If the SP was more in the range of $3 dollars today, as opposed to where it is today, maybe we would have only gotten a 10 to 1 slipt maximum. The SP went all the way to $2.28

[bago]

I acually was referring to the different share classes  not the R/S. This has been an issue for many many  years. Institutions will want equal voting rights. If  the bomber is serious about attracting istitutional investors that has to change imo. This has proven not to work over the years so it's time to change that structure. I also don't  believe the shares were

[BBDB859]

Great points. Noted on the shorting too. Just have to say that I'm not happy with the Dual share system either. This R/S's timing is only one reason why the Dual Share System sucks. But that's only part of the overall problem of this company. The Family could do well when or if, they give up the Dual Share System.  

[BBDB859]

Interesting Truth. I want to respond. Not yet though I need to run out right now. Cheers

[BBDB859]

Amen to you last statement "Hopefully, tho, we're near a bottom and the company's impressive turn-around efforts can shine again." I'm really surprised at that BTW. I would think that Investment community both retail Contrarian, or some Risk taking Institutional Investment funds, haven't jumped all over the stock to prop it up. Given the 5 consecutive Positive Quarters

[Housefish]

The problem with inflation for BBD is not on the demand side (although with higher jet fuel prices, lower equity markets, and a slower economy – demand could get hit) but the big problem is that BBD has pre-sold the next 2+ years of planes in one cost environment, but will be building the planes in a vastly different cost environment.    Unless they have already purchased all the raw

[BBDB859]

Hey House. Normally I would agree with your assessment that taking orders 2 to 3 years ahead on BJ's would be a problem for manifacturers. The problem with your statement here is, that EM and company have addressed that potential Inflationary problem. Example. Year 2022 of Backlog material is already purchased. Even some 2023 parts have been purchased. For year 2023/4 Backlog Inventory

[clubhouse19]

On those booked orders, we do not know the specifics of the contracts and what clauses are in it with regards to inflation and raw material clauses.  We have been told that BBD was paid  500 million in advance that benefitted just that meaning the inventory coat as you mentioned.    Look at this piece By Forbes and it specifically mentions price escalation clauses.as referred.

[Acuras1]

Thanks for your solid reply. Despite all the negative / bearish comments by some, your reply with explanation and examples of how potential additional costs / inflation concerns are dealt with. Besides the simple fact strong demand for these very high end products from the top 1% of the 1% is well insulated.  GLTA

[BBDB859]

Thanks Club for the reafirmation of my post with this back up post. Keep up the good work. Hope you enjoyed the day today. It was patio time today here in TO. 859

[Inuk138]

I'd like to say one thing, see you in 2025, who will laugh.