Bombardier Inc. T.BBD.A

What if history repeats itself? Food for thoughts.

[tinou]

We keep reading on this board that the killer for the Bomber is the debt.  I am not challenging this opinion but what about other potential killers?

Back around 2005 when BBD engineers were drawing plans for the CSeries, people (including myself) were all excited about the fact that this was the plane of the future, technically far ahead of the herd, a real game changer, and so on, and so on...

What happened when came the time to sell the plane?

BBD overspent their budget by God knows how much (We all know how good the then Management-watch out some are still there- was; Boeing and Airbus not only ridiculed the nice (or was it the cute?) little plane but they cut the prices for their aircraft competing with the CS 100 and CS 300.  Result is that money talks and BBD did not sell enough of this little marvel to fill the money pit they created themselves.

This is in my view one of if not the greatest risk for a company that does not have diversified business lines.  I can assure you that I am not a basher.  I have held BBD.B shares since 2006 and like a lot of you guys, I did not sell when the share price reached over $5 because I was a dreamer still believing that the sky was the limit with this stock.

What are the odds that the actual competitors of BBD and especially those who are much more diversified that the Bomber (!) rewrite the same history that we saw in the mid 2000s.

I guess that is the point Seeking Alpha was making in their recent analysis.  They may be just a bunch of bashers, thi I do not know.  But may be there is some sense in what they wrote.

I hope they are wrong but I would be a bit more comfortable knowing that Eric Martel remembers those days back then, since I believe he was with BBD way back then.

[johnney]

tinou, i know god dam well, what the hell you're talking about!!

[Acuras1]

Why do you think the shares are trading below 50 cents right now? This reflects the simple fact that very few investors are willing to admit they even own shares in the company because of so many management mistakes although, some far worse than others. Pierre Beaudoin should of never been in charge! I certainly congratulate the engineers for their many technological advancements. Building

[johnney]

Acuras! You got it right, EM has a long way to go, no doubt there!

[johnney]

Acuras1, i mentionned this before, P.B. can't write his own name on a sheet of paper without making a mistake!!

[stockitnow]

Bombardier tried to up Embraer with c series and take back the market. They design such a good plane that both BA and AB saw it as a threat and re-engined their NB. I dont know what Bombardier was thinking building three new airplanes c series, global and learjet at one time. The cash drain due to R&D on these 3 new airplanes deprived q400, crj and rail of getting refresh and stay competitive.

[johnney]

Hey stockitnow, how are you doing! you're not too much discourage of the SP actually! Hope that one division left, will be able to get out of this mess, cause we surely deserve this!

[PabloLafortune]

We talk about C series losses etc but in reality, Ceteris Paribus, the mezz debt deal with CDPQ also hurt BBD very badly. If CDPQ invests in BBd.b shares instead or straight BT equity that can be converted into shares with no dividends, the pro-forma debt probably ends up around $1-1.5B which would be excellent. And when you think about it, there's no way no how France, Germany or any other

[bicente]

the bad deal with CDPQ was the only way the family  could get fast cash without losing control of the company , the investment community  wanted to eliminate the dual share setup ... the bomber was closer to bankruptcy than we thought and without the CDPQ and goct "help" the bomber was done , the family wasn't going to put any of their money into it ( my guess) ... the

[johnney]

stockitnow, thanks for Answering me!!

[PabloLafortune]

Good point...and in a world of money printing via touchscreen, decisions become less and less economic and more and more political. Bombardier Aviation is the Airbus of business jets; Airbus is supported by France and Germany; Bombardier is supported by Ottawa and CDPQ. What chance does Bombardier have long term given it's remaining not unsubstantial debt? Not that great unless they do