Will Bombardier share price continue to hold?It's not often a fairly senior albeit small company's share price increases by 100% in about 100 days. A SP pull back somewhere between current price and last year's $74 high would, at least for me, be the norm. Looking at 50 or so month trend seems clear to me.
Over the last decade or so much Canadian investment money (especially conservative $) has just mostly stayed away from buying or even holding the company's shares. Friends & family kept pointing out to me: isn't Bombardier one of Canada's worse managed companies? We all know the company became ruderless despite the board and family's grandiose plans to rule their own little world.
In the mean time the company's engineers & workforce continued to bring world class technology forward and often class leading. A lot of the money wasted developing the C series benefited the PJ programs as the 7500 was born. And that $12B of tax losses looks like it might come in handy:)
All to say I see a repricing of the shares toward a new base that's at least pretty solid over $80. It wasn't just luck to get there. It's the result of a lot of hard work and excellent management planning. Yes covid was a lucky break for the company, but you have to congratulate the company's management in its execution of the opportunity!
Enjoy the summer, GLTA