Bombardier Stock Surging in 2016 Bombardier, Inc. (TSE:BBD.B) is now in a much better place than at the start of the year. Bombardier stock has settled at a new plateau of $2.00 after trading at about half that amount for much of this first half of 2016.
Much of Bombardier stock’s recent success has come from the company’s sale of 75 “C Series” airliners to Delta Air Lines, Inc. (NYSE:DAL). The U.S. carrier has an option to purchase 50 more.
Since that announcement in late April, rumors surrounding Bombardier’s sales have continued. The latest bullish prospect being discussed involves Bombardier talks with JetBlue Airways Corporation (NASDAQ:JBLU) about another potential C Series deal.
There have also been rumors of Bombardier supplying C Series aircraft for fleet of airliners for a brand new Iranian airline.
Yet, despite all the bullish prospects, Bombardier’s stock has not managed to close much above $2.00 per share.
Indeed, while people recognize Bombardier for its airplanes, in its home market of Canada, Bombardier is synonymous with streetcars and subway trains.
In Toronto, Canada there have been significant delays affecting a new 12-mile light rail line, which is supposed to open for the public by 2021. The City of Toronto has not received any prototype yet. The city of Edmonton, in Alberta, Canada, some 2,000 miles west of Toronto, also has Bombardier’s light rail transport on order and is experiencing the same delays.
Unfortunately, the delays are having a snowball effect. Bombardier’s rail division seems to have too many projects and no way to fulfill them.
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