What if history repeats itself? Food for thoughts.We keep reading on this board that the killer for the Bomber is the debt. I am not challenging this opinion but what about other potential killers?
Back around 2005 when BBD engineers were drawing plans for the CSeries, people (including myself) were all excited about the fact that this was the plane of the future, technically far ahead of the herd, a real game changer, and so on, and so on...
What happened when came the time to sell the plane?
BBD overspent their budget by God knows how much (We all know how good the then Management-watch out some are still there- was; Boeing and Airbus not only ridiculed the nice (or was it the cute?) little plane but they cut the prices for their aircraft competing with the CS 100 and CS 300. Result is that money talks and BBD did not sell enough of this little marvel to fill the money pit they created themselves.
This is in my view one of if not the greatest risk for a company that does not have diversified business lines. I can assure you that I am not a basher. I have held BBD.B shares since 2006 and like a lot of you guys, I did not sell when the share price reached over $5 because I was a dreamer still believing that the sky was the limit with this stock.
What are the odds that the actual competitors of BBD and especially those who are much more diversified that the Bomber (!) rewrite the same history that we saw in the mid 2000s.
I guess that is the point Seeking Alpha was making in their recent analysis. They may be just a bunch of bashers, thi I do not know. But may be there is some sense in what they wrote.
I hope they are wrong but I would be a bit more comfortable knowing that Eric Martel remembers those days back then, since I believe he was with BBD way back then.