THE PERFECT STORM FOR BUYINGThere are a nmber of reasons I'm so intrigued about Bombardier right now, Obviously, the current price when compared to company prospects is a huge motivator to take a position. While some people might feel fear, a steady hand sees opportunity, and that is where the money gets made.
But what I'm really quite excited about is what I consider to be the Perfect Storm that will be a HUGE driver for the company. What is that perfect storm? The order book and back orders.
Consider the following:
1) Bombardier arguably has the best business jets out there right now, and are already showing a strong backorder even within more challenging financial times. Now add in them beefing up the service centre component, and I think there will be even more compelling reasons to consider Bombardier as the absolute leader.
But to consider the Perfect Storm, consider the outside factors that are going to be STRONG drivers of business jet sales.
1) Covid: I think this has driven a LOT of sales, with people and companies just not wanting to be put at infection risk. While Covid has somewhat gone into the background of the news cycle, infection rates remain very high, and new variants continue to come out. In all likelyhood, this has become an illness that we will now "learn to live with", and deal with in our own chosen ways. For those with the $$'s, and who travel a lot, this is certainly one way of mitigating risk.
2) Airport turmoil: There is an ongoing mess at airports around the world, with thousands of flights cancelled daily, lost luggage, and people losing their minds. While this problem will ultimately resolve, it is very much front and centre currently, and has been for months. Again, this will push those who were considering the private jet option to actually pull the trigger and commit.
3) Future travel: While the current airport crisis will subside, there is going to be a growing an ongoing problem with future air travel, in that we are now at the beginning of a massive pilot shortage that is going to impact airlines for years to come. Already, pilots used to take about 22 years to reach the level of being the captain of prime routes (Asia etc). That wait for pilots is already reduced to 8 years.
While this problem is generally longer than my timeline in this stock, it is going to be a further driver to private jet purchases, as people just won't want to deal with the hassles of trying to find flights.
So is all of this the perfect storm for biz jet sales? Absolutely. Both in the near term, and also in the longer term. Bombardier will benefit greatly from all of this, and especially with them being what I consider to be the industry leader. This is why I say there is literally something for everyone in this stock right now, from trader to investor. In all timeframes, there is a LOT of money to be made.
Enjoy.