Quebec ready to support Bombardier

[rookiepilot]

More-- just out:

"The provincial government would be open to investing more in Bombardier, Quebec’s economy minister said following a meeting with the company’s president and CEO, Alain Bellemare, on Friday morning."

https://montrealgazette.com/business/lo ... bombardier

Unbelievable. Does a new bonus come with that for Alain?
See my shocked face.

On the executive stock trades:

https://business.financialpost.com/news ... ock-trades

"The shares closed at $4.64 on the day the stock plan was announced. Bellemare and other top executives aimed to sell shares worth a combined $164 million (US$124 million), based on the share price at the time.

Bellemare wanted to sell as many as 7.04 million Class B shares, and Chief Financial Officer John Di Bert planned to unload 4.36 million shares, according to the filing. Chairman Pierre Beaudoin, whose family controls Montreal-based Bombardier through multiple-voting shares, intended to sell as many as 3.1 million shares.

A company spokesman declined to comment Thursday on whether any executives have sold shares since the sale plan was announced in August."

Rats deserting the ship.

Viking promises to keep production in Canada.
https://www.ctvnews.ca/business/ceo-who ... -1.4170857

Why does Bombardier need to exist?
Allow them to fail, and help Viking to succeed and preserve Canadian aerospace.
Why not?

[tps8903]

Their Aerospace Division is sinking fast. Quebec will attempt to pump more money, like a trauma surgeon pumps blood. But no amount of blood can stop this amount of bleeding.

They make money on Trains and Powersports, I predict they will eventually liquidate their aerospace division to save the rest of the company.

[Chris M]

They make money on Trains and Powersports, I predict they will eventually liquidate their aerospace division to save the rest of the company.

The commercial programs will all go - I give the RJ another 5 years before it's either sold, handed over, or killed outright. Learjet may fold as well or be sold to Cessna. The Challenger and Global are a different story - both (especially the Global) still sell well and have much higher profit margins. With the 7000 almost ready for first delivery that will add a third high-profit line. I don't see the business aircraft division closing the doors any time soon.

[Gino Under]

Throughout the country, not just in Quebec, small towns, villages and communities are turning into ghost towns while businesses shut down and employers of any description go out of business or simply move away from those communities. More and more Canadians are being forced into bankruptcy, losing their homes, drawing welfare, and employment benefits while there's not a job in sight. So why not let Bombardier fail? Let's all cheer that notion. Lots' of jobs in the big city of Montreal. What's another 5,000 unemployed workers to Canada's failing economy. Trump's tariffs be damned. The new NAFTA be damned right along with it. We'll survive. After all the Canadian taxpayer bailed GM, Ford, and Chrysler out. Look where they are today. I'm glad it won't be me having to compete for a job at McDonald's if we let Bombardier fail.

Bombardier's present state didn't happen overnight and it's not going to be fixed overnight. I can go back to the early 2000s. Tellier, a former head of CN Rail ran the company. Good choice? The Bombardier family, Beaudoin Sr. then Beaudoin Jr., more good choices? Not exactly aerospace leaders or top aerospace executives. These guys didn't do much to make Bombardier successful. They sure as hell did more than Bellemare to be accountable for the present state of the company. Any turnaround at Bombardier, whether hoped for or imagined, is going to be excruciatingly painful and lengthy. This company has suffered at the hands of executives who had no imagination or vision. I wouldn't put Bellemare in that category.

While I don't like it any more than most, executive compensation is a red herring. It falls to the Board of Directors and no one else as to who and how executives get compensated.
The company has a fatal cash flow problem and it's time to reduce any amount of government handout. As the company chops up the furniture to keep the fires burning, taxpayer investment needs to be minimal. Force Bellemare to streamline his product lines and businesses or let them fail.

C Series will be built in the United States by Airbus. How many jobs has Bombardier already lost. Yet, C Series sales have been non-existent since they took over. How long is Airbus likely to put up with that before C Series is laid to rest?

I'd estimate the end of Bombardier is near. With or without government intervention. Something I would never hope for or cheer about.

Gino Under

[rookiepilot]

Any turnaround at Bombardier, whether hoped for or imagined, is going to be excruciatingly painful and lengthy. This company has suffered at the hands of executives who had no imagination or vision. I wouldn't put Bellemare in that category.


Gino Under

Nice. Let's simply try to address the above.

There doesn't need to be a turnaround. What is wrong with -- instead -- helping a (seemingly) successful company -- Viking -- become more successful? They will create many new jobs in the process.
This is called capitalism. Weak companies fail. Strong companies become more successful-- and hire!

Now, the CEO, and the board: I disagree with you. So, obviously, does the universe of investment capital out there.

I recall you've taken exception in the past to my consistent negativity on the company. Rather a mocking tone if I recall correctly. I've been in the investment business, managing my own capital, for 20 years now. I've evaluated hundreds of companies and situations in that time.

I'm just curious -- what experience qualifies you exactly to make your definitive comments on the excellence of Bombardier's board and senior management?

[Human Factor]

"Quebec ready to support Bombardier"... with equalization money from Alberta.

[Jet Jockey]

And how long did the Canadian tax payers help Air Canada afloat?

I think we should let all American airline companies unrestricted access to the Canadian market and see how long it takes Air Canada to fold and beg for government assistance.

[rookiepilot]

Gino thinks, because Canada bailed out the auto maker's and 400,000 jobs during the worst financial crisis since the depression, when the banking system was on the verge of failure -- I should support Alain's 14 million dollar pay package today and as many times as he asks for.

Hey, it's Quebec. They are different. Deserve unlimited government funds.

But he is probably fine with the government calling me and every other small business crooks, and starving the energy sector of what it needs to build pipelines-- that actually make money for the whole country.

https://www.cbc.ca/news/canada/montreal ... -1.4338579

https://www.cbc.ca/news/politics/canada ... -1.3221858

"We have to know that a large percentage of small businesses are actually just ways for wealthier Canadians to save on their taxes, and we want to reward the people who are actually creating jobs, and contributing in concrete ways," he said."

Reward hard working folks like Alain and Bombardier, then?

Hypocrisy.

And you wonder why, Gino, investors avoid this country like the plague right now?

You don't understand this, but I'll repeat what I've said:

It would be a GOOD THING for Canada in the end if Bombardier was allowed to fail.

[ogc]

Meanwhile

https://business.financialpost.com/news ... ock-trades

[BigQ]

Corporate welfare is the wrong way to go. Let BBD fail, and let whatever comes back from it's ashes, come back.

['97 Tercel]

To bad oil and gas industry wasn't in Quebec, we would have pipelines everywhere and actually selling some of it..

[rookiepilot]

https://business.financialpost.com/news ... l-exodus-1


Foreign direct investment into Canada plunged last year to the lowest since 2010.

All good news to the US haters. It's all good.

Oh except: Canadian money is flooding into the US.

https://business.financialpost.com/comm ... titive-u-s

Evil businesspeople crooks. How dare they flee Canada.
Maybe Canada should put capital controls in, eh Gino?

[Gino Under]

Let the Bombardier haters hate away. Not much is new in the rhetorical BS.
As I've said repeatedly, I'm not hoping for, or wishing for the demise of Bombardier OR ANY OTHER CANADIAN COMPANY for that matter.

Frankly rookiepilot, until you come up with something mature, I'm not interested in your BS. Your words tell me all I need to know about your financial capabilities and intellectual capacity.

The stock selloff that saw shares of Bombardier plummet to a 52-week low is "absurd", "unjustified", and "irrational", not to mention "extreme", according to some analysts (rookiepilot, not among them)

quote - "Since 2015 Bombardier has close to doubled its profitability, its financial position is much improved and the risk profile for the company is dramatically better.. even with the re-bound in the share price on Monday, we believe that the magnitude of this sell off in the stock is unjustified." - Cameron Doerksen, National Bank analyst. (again, not rookiepilot, the self-proclaimed financial whizz)
"Even with the recent cash flow miss, Bombardier is expected to end the year with around $3 billion cash on hand, $600 million more than in 2015.

all due to the "current management, which were all largely brought on board in 2015, have also made some difficult but necessary decisions to put the company on a path to sustainable financial success."

I'm holding onto my BBD B. rookiepilot can GFH

Gino Under

[rookiepilot]

Let the Bombardier haters hate away. Not much is new in the rhetorical BS.
As I've said repeatedly, I'm not hoping for, or wishing for the demise of Bombardier OR ANY OTHER CANADIAN COMPANY for that matter.

Frankly rookiepilot, until you come up with something mature, I'm not interested in your BS. Your words tell me all I need to know about your financial capabilities and intellectual capacity.

The stock selloff that saw shares of Bombardier plummet to a 52-week low is "absurd", "unjustified", and "irrational", not to mention "extreme", according to some analysts (rookiepilot, not among them)

quote - "Since 2015 Bombardier has close to doubled its profitability, its financial position is much improved and the risk profile for the company is dramatically better.. even with the re-bound in the share price on Monday, we believe that the magnitude of this sell off in the stock is unjustified." - Cameron Doerksen, National Bank analyst. (again, not rookiepilot, the self-proclaimed financial whizz)
"Even with the recent cash flow miss, Bombardier is expected to end the year with around $3 billion cash on hand, $600 million more than in 2015.

all due to the "current management, which were all largely brought on board in 2015, have also made some difficult but necessary decisions to put the company on a path to sustainable financial success."

I'm holding onto my BBD B. rookiepilot can GFH

Gino Under

LOL!! Ok, then.

Uhmmmmm---------FWIW ------ That's why analysts are analysts., and aren't trusted with sharp knives or money. They write reports to keep the sheep like you Gino, calm, and not selling, while insiders and institutions do. Professionals fade them all the time.

The single stupidest people in the business -- except the ratings agencies. Good luck to you!

[Lightchop]

Bought Friday at $1.64 sold today at $2.06. Made just shy of $4k.

Thanks BBD.B

[Gino Under]

Lightchop, congrats.

I foolishly bought (contrary to my worst instincts) last week at $1.76. Low and behold, It closed today at $2.26. I’m up almost $1500.00, which helps with my losses so far with this stock. But it’s in keeping with ‘buy low, sell high’ speeches you get from financial advisers. I usually buy high and sell low. I’m lead to believe that some “insiders and institutions” do sell low, and buy high.
Some market analysts are sticking to their $5.50 valuation assessment of BBD-B, so.. I’m hanging in for now.
It’s still a high risk stock though.
I’m thinking about Indian wrestling a stranger this week. If I win, I’ll likely buy more BBD-B. If I lose, my wife says I can’t buy any more B for now. I’m not sure “being in the investment business, managing my own capital for 20 years” whilst “evaluating hundreds of companies and situations” really matters.
Having a flying career was probably far more interesting. Although, I do regret not buying Microsoft in 1980.

Gino Under

[rookiepilot]

Is your counsel, Lightchop and Gino, that young pilots here should invest their retirement savings in Bombardier stock, or better yet, quit their jobs and day trade Bombardier stock?

Why do you think -- in your professional opinions -- or the analysts you follow -- no deep pocketed investors will touch this stock at these rock bottom prices? I certainly don't see any, and the Caisse don't count. Hence government bailouts.

Come to think of it -- why do you guys have jobs if you're that good you can do this daily?

To conclude, You are way, way, way out of your league in this conversation.

[Lightchop]

Not at all. I took a YOLO gamble seeing the stock bounce off it's two year low and figured "hey it's QC's baby they will never let it die" and dumped some money on it near Friday close. I have a very high risk tolerance level and of course not everyone does. It's essentially gambling. I had a feeling after a weekend of "cooling off" the stock would bounce back a bit and I could make a quick buck. II could have held well into the $2.20+ mark but I took my gains and that is that. It all worked out this time, and in the past it hasn't with others. I had zero interest in holding it longer than Monday morning, which is exactly when I sold.

Keep in mind I'm also playing with paper money that I "won" through big gains in my Cannabis stocks so I'm a bit more fast and loose with it.

I don't recommend anyone take advice from me for anything. I just happened to have a "win" here and thought I'd mention it.

@rookie you really seem to have it out for me on this forum? I wonder why? What have I ever done to piss you off so much?

[rookiepilot]

https://globalnews.ca/news/4680975/queb ... -interest/

"Economy Minister Pierre Fitzgibbon says he has done nothing wrong."
"The Terrebonne MNA has come under fire for saying he is open to investing more government money in Bombardier -- when he still owns shares in the company."

This just gets better.

"Fitzgibbon denies he has a conflict of interest when it comes to Bombardier, saying he meets the requirements of Quebec’s ethics commissioner because his shares are being transferred to a blind trust.
“Do you know what that means? I have no idea what’s in there,” he explained to reporters on Tuesday."

I'm sure, minister.

[Gino Under]

Okay. I confess. I’m just an over-the-hill boomer and ex-airline pilot who is the last person on this forum anyone should ever listen to for financial advice. (I don’t believe anyone reading my nonsense would ever consider going out and buying large sums of BBD-B anyway.)

Based on the ‘advice’ from ‘financial advisors’ I’ve had during my flying career, I might be just as far ahead today as I am by listening to my own instincts (right or wrong), as I have been by listening to CFPs over those same years, or even a Fortune Teller for that matter. Why did I ever invest in COS? Because my CFP told me at the time oil would skyrocket to “potentially” a hundred plus a barrel. Wow!!!
I took a bath. The lesson learned was simple, don’t ever buy high again. So I try not to. Bombardier so far, has been a total fluke but it’s clearly under valued and well ahead of its so-called 5 year turnaround plan. As long as they have a safety net (in whatever form that takes) my investment is kinda safe. Right?

I am totally against the legalization of pot and therefore understand the great investment opportunity presented by those companies legally growing and selling it.
I’m looking at that as well but I have to deal with my morality issues first.
Continued luck with your investments.

Gino