clubhouse19 wrote: What you say is true but really doesn't explain the recent unrelenting drop. The shorts are all over this. I don't think they are basing this on the lack of A220 news alone. They have to have a strategu on place to cover. I believe whenever we see recently a move to the upside as we've seen, it is due to covering then used again for another round of shorting. The evidence for this is the vadtly differing number Of short sales executed during a reporting period as Compared to short volume outstanding as reported Irroc reporting versus what is reported as aggregate numbers every 2 weeks. quote=cseriesaddick]
clubhouse19 wrote: Now do the shorters think they eill be able to cover with those possible sales?
As we can see from my previous post, NBF (Doerksen) doesn't think that A220, CRJ or Q400 will constitute the core of Bombardier's future firm value. All together, he thinks it will only represent 11,3% of said firm value in 2020.
But I'm far away from being convinced that the average investor has fully understood this situation. I think that for a certain time again, PPS will still react more importantly when an A220 order is announced than when an important Bombardier Transportation contract is disclosed (and for confidentiality purposes, many of Bombardier's Business aviation sales are simply not disclosed).
As someone rightfully said in a previous post, Bombardier's was mostly focusing on the CSeries in the last fews years, to the point that most investors came to the conclusion it was the core business of the company. BT and Business aviation were left aside in the mind of most investors, while quite evidently, this is where the money is.
I think it will still take sometimes for the average investor to realise that and that, in the meantime, A220, CRJ and Q400 sales will continue to impact the PPS more than the other Bombardier divisions. Not very logical, but as we all know, the market doesn't always follow logic.