Breaking from the trend
Over my 20 years investing with Bombardier, I have noticed that in most cases, the announcement of a train contract resulted in the SP going down. I have commented on this board about this issue at many occasions and no one was ever able to provide a credible reason as to why. On the other hand, a small aerospace contract would usually push the SP way up.
Now that the Cseries is under the control of Airbus and Bombardier is focusing on much smaller planes, investors might pay more attention to train contracts.
With the NJ train contract officially annouced this morning for $669 millions USD and a potential for $4 billions, we will see if the SP breaks with the past trend.
It is currently at +$0.05. Nothing too exciting considering the firm $669 millions USD train contract. We will see if it will stay in the green or drop into the red by the end of the day.