So on Nov 12, a 250million order was announced... it didn’t phase the stock price... it kept plummeting. Was the context/background much different than now? I know the NJT has tons of options and such, but don’t investors care more about the commitment and don’t get fooled by what might not even happen?
https://www.680news.com/2018/11/12/bombardier-alstom-to-supply-montreal-with-153-metro-cars-in-448-million-order/"
Reply: Hey Tom:
My humble opinion on what you are saying is simple.
We have to change our thinking about how we look at Bombardier. Because Bombardier has changed as a company. They no longer get that income from commercial Aircraft Division. That division will no longer make the big impact that it did on the stock in the past 2-3 years. They've basically disposed of that division. Rightfully so. It was a loosing competitive duopolized proposition. In my opinion they found that out the hard way.
Now they've rightened the ship to stick to the profitable divisions.
So when we hear that Bombardier
is getting a contract on the rail side of this magnatude?? Then now this is, or becomes, the new promise of replacing the CSeries hope. The funny part of this equation is that.
Yes the rail isn't sexy. But it pays the bills. But the rail division is/was the real generator of cashflow/FCF to begin with. But people put it in the back burner. Well now they better put in the front because this now is the the cashflow generator along with the Business Jets division.
Cheers
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