A POWERFUL UPSIDE MOVE IN THE MAKINGA couple of months ago, I came on the board noting I had taken a position. The stock moved pretty quickly up to the $34.00 area, and I said that there was a far bigger move to come, up to the $54.00 range. I do think that move "was" in there, but then the overall market decided to tank 5000 points, and Bombardier stock succomed to some of that broader selloff. Personally, I didn't anticpate a fall back to the $24 range and I'm still pretty annoyed by that. Oh well. These things happen, and it really was only a decision as to whether there was a problem with the company, or a problem with the market. With conviction, I decided it was solely a market issue, and bought more on the dip.
So here we are again, back up near that $34.00. What to make of it?
Absolutely, I still say there is a massive updraft in the making to the $54.00 range. But there are some notable differences here, that should make that move up even more powerful. First of all, we are back in this $34.00 range WITH the market still being off about 4000 points. That in and of itself is a great testiment to the strength of Bombardier stock. Additionally, what was market headwinds should prove to be much more market tailwinds overall. I say "overall" because I do anticipate more overall market choppiness. But we're far closer to that bottom now, if not fully in the midst of it. Good news for the stock.
Secondly, we're now another quarter closer to continued good news. Not only am I anticipating good news this quarter, which will be it's own driver for the stock, but I also anticipate a FULL sentiment change. The last quarter caught the market by surprise, but I still think there's a sense of "prove it" within the market. I think this quarter coming up will certainly do that, as will the final quarter. And with that, money will flood into the stock because at that point you not only have a massively undervalued stock, but you have a market that now fully realizes it.
The other potent force for the updraft is currently starting right now. It's that anticipation buying for the quarterly that I said would begin this week. What I didn't anticipate though was how strong it would be...it's already showing to be VERY strong, and how dry the stock is....again, VERY dry. These combined elements will move the stock strongly.
So with ALL of the elements above, (and some chart based elements that I haven't gone in to here) you truly have the making of a POWERFUL upsdie move. $54.00 range in sight?? I would say an absolute yes, and then some. This run is only just getting started.
Enjoy