RE:RE:Impact of CSeries on BombardierThe number of rich folks are also growing which bodes well for a company selling a product most of us will never get to use.
The financial crash and now the covid crash have widened the canyon between the rich and middle class as the former loaded up on cheap stock and the latter piled into record debt. In fact, more middle class are slipping down the ladder than climbing up. While the rich own companies and stock, the Scotia Bank richer than you think crowd" hold massive debt at record low interest rates that has only one place to go.
bicente wrote: In life there are no guarantees but I'd rather be selling top notch quality products to the rich then signing huge contracts just to keep the doors open .. The cseries was huge , they took on more than they could handle ..they are not in that situation anymore ..bringing the Cseries to life was an amazing accomplishment but it wasn't a smart business decision , no one in the indusrty can downplay the bomber's innovation in their products ... their products now are in huge demand and price isn't what their clients look for as a first criteria to place an order , hopefully it will stay that way ... hopefully the family will focus on innovation on a smaller scale (perfectioning their niche market ) and their business sense can run the show instead of their grandeur... When they got into trouble and talked about a 5 year plan , the shareholder value was last on the list , I believe we are very close that bottom ... I'm sure no one knew that they would get so little for their assets but it is what it is and they have moved on ... No one knows where the business jet market is headed but I can assure you the rich will not be taking mass transportation and if they like your product they will pay to get it .. GLTA
tinou wrote: My greatest concern with the fate of BBD is not related to things under control by BBD but much more with stuff that is out of their hands. BBD (David) is now a one business line company fighting with a couple of Goliath companies that can do a lot to harm BBD by creating situations for which BBD cannot control the remedies.
BBD is all vested into civil business aircrafts with:
Potentially ferocious competitors;
2 not very friendly governments to support them;
A very heavy debt
A major shareholder (family) with a competency and selfishness that leaves to be desired.
Major threats may be:
Increase in interest rates;
Goliath deciding to cut their prices for a while to starve BBD;
Reduction in sales due to some uncontrollable situation (crash, recall, etc.)
All problems that BBD has no control over and which may hurt BBD FCF and force BBD to look at having to find a savior.
I am a strong believer in BBD but let's not dream in colour and believe that they are now out of the woods with a strong duo leading the company.
I believe that at this point, the glass is half full half empty and we can only hope for the best.