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Bombardier Inc. T.BBD.A

Alternate Symbol(s):  BDRPF | T.BBD.PR.B | BDRXF | T.BBD.PR.C | T.BBD.PR.D | BOMBF | BDRAF | T.BBD.B | BDRBF

Bombardier Inc. is a Canada-based manufacturer of business aircraft with a global network of service centers. The Company is focused on designing, manufacturing and servicing business jets. The Company has a worldwide fleet of more than 5,000 aircraft in service with a variety of multinational corporations, charter and fractional ownership providers, governments and private individuals. It operates aerostructure, assembly and completion facilities in Canada, the United States and Mexico. Its robust customer support network services the Learjet, Challenger and Global families of aircraft, and includes facilities in strategic locations in the United States and Canada, as well as in the United Kingdom, Germany, France, Switzerland, Austria, the United Arab Emirates, Singapore, China and Australia. The Company's jets include Challenger 350, Challenger 3500, Challenger 650, Global 5500, Global 6500, Global 7500 and Global 8000.


TSX:BBD.A - Post by User

Bullboard Posts
Comment by NothernLightson Nov 17, 2018 9:34am
119 Views
Post# 28989131

RE:RE:The (MASSIVE) Difference Between the Company and the Stock

RE:RE:The (MASSIVE) Difference Between the Company and the StockTor..........I think $6 within the next few months is very optimistic........probably too optimistic. Yes the SP is irrational at this level but there are some still headwinds. In the market there is a law called: the Law of Gravity........stocks usually rise relatively slowly, yet they can go down in a flash. Much harder on the way up than on the way down. But hey, anything is possible. Bellemare says they're losing 2 miilions per CRJ they sell.......not a good business to be in for them. They have to address that situation. Selling the franchise would seem to make sense for the bottom line. Although the massive layoff announced at Q3 seemed logical ( trimming the fat ), but it was not perceived as such unfortunately. The main thing hanging over Bombardier's head is it's huge debt......and possible liquidity issues in the future.

Good luck to all.


Tor2018 wrote: Thank a lot for your Great post Star!
We have witnessed a historic Stock Market Drama here... It was really stressful for longs to hold this stock during this free fall while company fundamentals are stronger in last few years... real example of manipulation, spreads of fear and panic sell of stock market...

No doubt this will come back up strong and quick... I have pushed the sell button this week but it was with limit $6 valid until canceled, just to stop shorter to play my stocks at behind the scene..
It may sounds like a joke this week but $6 is still very much possible within next few months!!!

starsearcher40 wrote: There IS a difference between a given company and the stock of that company in the market.  Yes, eventually equilibrium balances out a stock such that it reflects the value.  But there ARE occasions, and this is one of those occasions, where there is now a COMPLETE disconnect between the company and the share price.  In this case of Bombardier, the opportunity is now there to make a LOT of money.

What the stock has witnessed in the pas8 8 trading sessions is literally the perfect storm which has hammered the price. These include:

1) Bad news.  Yes, the news got the bad snowball rolling, but in NO way was the news as bad as the stock price now reflects.  What happened when the news hit was it took the share price down below $3.00.  In this light, the "bad news" was only what got the ball rolling. It's an important differentiation here.  The stock has now departed from the value of the bad news itself, and other factors unrelated to the news have now taken over driving the share price.

2) The $3.00 level is a psychological level in the market, and this would bring some to sell beyond the news itself.  But the $3.00 level is also a threshold for margin.  The margin calls on such a widely held stock would be an absolute tsunami of selling.  This is an artificial scenario, unrelated to the news itself.  Yes, it is "real" in that the share price drops because of it.  But it is NOT of the company itself.

3) The $3.00 level is also the threshold for a number of mutual funds.  Due to their own covenants, they too would go into forced selling mode.  The combination of Funds AND margin calls absolutely is devastating to the share price.  Again, it is NOT of the news, or of the company.  It is a doubly strong temporary phenomenon.

4)  In the midst of the margin calls and Fund selling, panic starts to set in. The emotional component of a stock should never be underestimated as it can be absolutely powerful and feed/cycle on itself. This absolutely happened.  There was full-on panic and fear and confusion, and in the midst of this, people just barf up their shares.

5)  There is also another phenomenon that happens..not often, but I would suspect it in this case too. Funds are run by people, and people are human and emotional.  It is not beyond a Fund manager, angry at things, to essentially piss on the stock.  I wouldn't say this is a smart move, but it does happen. With bigger Funds, they'll dump fairly indiscriminately which damages the stock but does not represent too big a dent in their overall portfolio. Also, there will be managers who just don't want the stock showing in their portfolio, so they'll sell to get it off the books.

6)  Upon the news, the shorts could smell blood.  They would know full well ALL of the above factors and use them to their advantage for as long as it last, which is the point of full capitulation.  Today, I would say that capitulation absolutely happened, with the volume confirming it.  Today's volume was the biggest volume day in 10 years. There is irony in that the very day when people are absolutely barfing stock all over the place, that it is also the exact moment when people should be buying.  That point was at $1.60 today, with some traders getting in a little too eager at the $1.80issh level.

7) It is that crossing point, where fear/pain are absolute and people emotionally sell, interjected with the same point where people are afraid to buy, that the stock drops the most and the volume goes through the roof.

So here's the thing. If you read back through all of the points above, how many of them are long-lasting, and how many are a temporary phenomenon? The correct answer is that the only real/lasting thing is the news itself, and there is NO way the news fully equates to the current share price.  The trick then is to find the apex (bottom) of the temporary selling pressure. Buy at that point, and you'll make a fortune as the temporary/artificial factors abate, and the buying pours back in.

Was that full-on capitulation today?  I would say so. It had ALL the hallmarks of a capitulation event.  From here, I would expect to see the stock rebound strongly, throughout next week.  

As the saying goes, and it is SO true:  Buy when there is blood in the streets. Imho, the time to buy is now there in spades.

 




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