RE:RE:Michel Girard rides againI agree. bad management from bottom up. where is the common sense,
maher1 wrote: Most of what Michael Girard wrote in that article describes my own reservation about the deal with Airbus. Nonetheless, Bombardier's board agreed to it, Pierre Beaudoin gave it his blessing and the Trudue and Quebec governments did not object. Furthermore two well known analysts praised the deal and just recently one analyst gave it an upgrade. Still, as an outsider who is not privy to the details that lead to that decision I am not happy (as a Canadian and investor) to see that 50.01% of a project that cost the combany $7 billion be given to a foreign company for nothing with the obligation that Bombardier spends more than a billion dollars over the next three years plus pay to setup the US assembly plant owned by AirBus. Other details of the agreement are just as troubling. I wonder who in his right mind would agree to something like that unless there are other issues that are not clear to me. Maybe, as one analysts said " 30% of a successful project is better than 100% of a failing project".
Anyway, the share price has done well since the agreement was signed and in less than two weeks a lot of the details will be revealed in the upcoming financial report. I believe that Bombardier shares will eventually exceed $8 if all goes well.
Note that, I didn't like when Steve Jobs cancelled the Newton product and cancelled all licenses given to manufacturers of Apple clones. In spite of my reservations Apple shares continued to do well and is now the most valuable company in the world. Maybe Bombardier will have similar luck but at a much reduced scale of growth and value.