RE: Why is BBD struggling ...Nothing personal but I believe your conclusions are somewhat inaccurate and several of your "facts" are actually opinions or speculations.
Fact 1: "Recreation vehicles have higher profit margins than planes, trains and trams. Therefore lower profit margin ... lower profit." Historical lower profit margins do not necessarily translate into future lower total profits. Volume of sales plays a role as will the cost cutting.
Fact 2: "BBD is cutting cost, reduce output, reduce revenue, reduce profits and therefore reduce equity return to investors." Cost cutting does not reduce current output if you are not operating at 100% capacity. Cost cutting that reduces unused capacity therefore does not reduce current sales but decreases unneeded expense. This means an increase to profit not a decrease to profit as you suggest.
Fact 3: "Canada's Auditor General will release in the new year a report..." Unless you have inside knowledge of the AG's report, this is not a fact but speculation.
Fact 4: "Tellier is an influencial individual under the Chretien era, how will he do under Martin? rumor says not very well ..." As you say, rumour says not very well so this is also therefore not a fact but speculation.
Fact 5: "Many analyst are downgrading BBD and currently have a sub-$4 target price." Please name these many analysts. According to the Nov 21 Investor's Digest (an independent investment guide), of the 12 analysts who they follow, 1 says buy, 2 say buy hold, 4 say hold, 2 say hold sell, and 2 say sell. Not what you would call a strong sell signal. A related investment guide called CBS Stock Reports, as of this week, rates BBD as a buy long term at current prices.
Fact 6: "BBD stock price has gone up without any real fundamental realizations or positive changes that can support this increase in value and therefore is unsustainable." This is not a fact, it is your opinion. There are some who believe (opinion) that the recent actions taken by BBD are very positive. This differing of opinion on the actions of a company is what makes the investment world go round.
Cheers.