RE:bashingSome people think and say that Bombardier will not do well with only one business line. They say Rail and BA offset each other during recession but I disagree. Bombardier had rail and aviation for decades and they couldn't manage both to take advantage of the diversity between 2 divsion. Furthermore we are at the bottom of bizz aviation cycle now. It can go down further but bombardier even after initial Covid-19 related cancellation has I think 13 billion of backlog. If we see more cancellation then maybe the backlog will shrink to lets guess at 10 billion. Well that is still more than enough to keep bombardier going for few years until global economy recovers. And when economy recoveres then bizz jet will be in high deamnd. Also all division or units draining cash are gone so bombardier should be able manage their cssh flow and reduced debt from selling rail divsion. I can see bombardier also refinance their upcoming bonds at lower rate after rail is gone. Bombardier sp is depressed because of the Covid-19 unknown, uncertain on when the Spirit deal will close, and upcoming ruling on rail sale. Uncertain and unknown are what keeps the sp down. Also the low sp also attract a lot of day traders as well. But of late we are not seeing the high volume either so we are seeing some sort of stability in sp but this is short lived. It can go either way based on what happens on July 31st and when Spirit deal closes.
kalman007 wrote: and the bashing continues..this time Seeking Alpha last week Motley Fool. Whatever...these forums thrive on bashing...part of their pump and dump or bash and buy schemes.
After the current acquisitions go through, BBD will finally be left with a more manageable business in their private planes. They have a monopoly and best in class aircraft with a growing sales pipleine. Makes me think it's similar to the good old days of being a jetski/snowmobile manufacturer when they were in control, well managed and profitable. It's interesting that even now, that division has always performed well. I say we let the chips fall where they will, focus on the core competencies of business jets under Eric's leadership and if at all possible block those ridiculous payouts to the outgoing executive. once this is behind us, the SP which is greatly undervalued should outperform even the most conservative outlook. jmo