Bombardier sells regional jet program to Mitsubishi

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Daniel Cooper
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Bombardier sells regional jet program to Mitsubishi

Post by Daniel Cooper » Tue Jun 25, 2019 11:00 am

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Mapleflt
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Re: Bombardier sells regional jet program to Mitsubishi

Post by Mapleflt » Tue Jun 25, 2019 11:59 am

Hope they "repay" some of the funds they received over the years from the Canadian taxpayers
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porcsord
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Re: Bombardier sells regional jet program to Mitsubishi

Post by porcsord » Tue Jun 25, 2019 12:20 pm

Much like Quebec has gone above and beyond to help Alberta out by allowing pipelines out east. Oh... Wait...
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BGH
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Re: Bombardier sells regional jet program to Mitsubishi

Post by BGH » Tue Jun 25, 2019 4:37 pm

Another hedge fund manager making it look really profitable so they can set up a huge dividend payout & then walk away & let it fold.

Daryl
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Re: Bombardier sells regional jet program to Mitsubishi

Post by boogs82 » Tue Jun 25, 2019 6:41 pm

BGH wrote:
Tue Jun 25, 2019 4:37 pm
Another hedge fund manager making it look really profitable so they can set up a huge dividend payout & then walk away & let it fold.

Daryl
But it seems to have helped the stock prices today.
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digits_
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Re: Bombardier sells regional jet program to Mitsubishi

Post by digits_ » Tue Jun 25, 2019 9:26 pm

Mapleflt wrote:
Tue Jun 25, 2019 11:59 am
Hope they "repay" some of the funds they received over the years from the Canadian taxpayers
I'm sure if they had the cash to do that, they wouldn't have sold the program in the first place...
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Mapleflt
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Re: Bombardier sells regional jet program to Mitsubishi

Post by Mapleflt » Wed Jun 26, 2019 3:54 am

digits_ wrote:
Tue Jun 25, 2019 9:26 pm
Mapleflt wrote:
Tue Jun 25, 2019 11:59 am
Hope they "repay" some of the funds they received over the years from the Canadian taxpayers
I'm sure if they had the cash to do that, they wouldn't have sold the program in the first place...
Well you missed the point by a wide margin :roll:
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Re: Bombardier sells regional jet program to Mitsubishi

Post by Gino Under » Wed Jun 26, 2019 2:10 pm

So...
what would be an acceptable amount if Bombardier were to “repay” some of those tax payer funds it’s received over the years? Any ideas?
That’s assuming they haven’t already paid or met a number of their obligations to the tax payers (of which, I’m one). It is understood they aren’t obligated to repay every tax dollar they’ve received. Right? Or do Canadian tax payers not invest in Canadian businesses unless we’re all assured of a 100% ROI? That would be great. Somewhat naive, but great.
Obviously, expectations of a 100% ROI by any investor in any venture involving risk is unrealistic. But somehow, not in Bombardier’s case. Right?
If only A. V. Roe could have sold the Arrow program to Lockheed or McDonnel Douglas like Bombardier sold the C series to Airbus how differently things might look today. For all the glory basked in by Canadians over the Arrow, it’s too bad tax payers didn’t see much of a ROI from that program.
Dumping the CRJ was a good business decision as was the Dash 8. Now, if they can unload the Lear Jet, that would make my day.

:lol:
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Re: Bombardier sells regional jet program to Mitsubishi

Post by YVRLTN » Thu Jun 27, 2019 10:00 am

So no CRJ550?

Or are they included in the backlog to be complete by next year?
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Re: Bombardier sells regional jet program to Mitsubishi

Post by confusedalot » Sat Jul 06, 2019 5:40 pm

Stating the obvious, it's all about greed and fear. The money guys could not give a shit about the product.
Whatever quality the former bombardier product may or may not have had, the guy who bought the place sees a short term huge payoff.
Long term......u can bet they don't give a shit.
That is how and why the rich get richer and the poor get poorer.
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veni, vidi,...... vici non fecit.

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Re: Bombardier sells regional jet program to Mitsubishi

Post by rookiepilot » Sat Jul 06, 2019 5:59 pm

confusedalot wrote:
Sat Jul 06, 2019 5:40 pm
Stating the obvious, it's all about greed and fear. The money guys could not give a shit about the product.
Whatever quality the former bombardier product may or may not have had, the guy who bought the place sees a short term huge payoff.
Long term......u can bet they don't give a shit.
That is how and why the rich get richer and the poor get poorer.
What exactly SHOULD any investor care about ...other than money?

Do you trade, invest ...your flying services for free, or expect a financial return?

I'm curious from you and Gino -- the answer to a simple question:

Out of the trillions in private sector investment capital out there, and in a low return world -- why NONE of it was willing to come behind Bombardier and their team?

I've expressed my view repeatedly, as one who invests for a living, and I've seen it mocked.

That view is this: I wouldn't touch almost any company in Canada, at almost any price, and Bombardier has to be near the bottom of that list. At any price.

It would appear other investors agree!

USA! USA! for me, at least professionally!
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Re: Bombardier sells regional jet program to Mitsubishi

Post by Zaibatsu » Sat Jul 06, 2019 7:39 pm

I wonder what Canadian investors like the Irving Family, the McCain Family, and Jim Pattison think of your opinion?

That’s right, they probably don’t.
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Re: Bombardier sells regional jet program to Mitsubishi

Post by rookiepilot » Sat Jul 06, 2019 7:57 pm

Zaibatsu wrote:
Sat Jul 06, 2019 7:39 pm
I wonder what Canadian investors like the Irving Family, the McCain Family, and Jim Pattison think of your opinion?

That’s right, they probably don’t.
Who?

Seriously, I'm a huge Jimmy fan.......
https://www.bloomberg.com/news/features ... ckup-truck
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Re: Bombardier sells regional jet program to Mitsubishi

Post by Gino Under » Tue Jul 09, 2019 9:40 am

I’ve invested in BBD-B for several years and can confirm it’s been a shite investment. But, I bought high ($3.75) and intend to sell high or go broke. I have (or have to) have confidence in the turnaround management under Bellemare who’s doing a good job.

quote:
“While a stock price alone isn’t the only place an investor should look when considering an investment, it’s a great place to start if you have a small amount to invest. Take your Tax-Free Savings Account (TFSA) and this year’s contribution room of $6,000. That leaves you with a limited amount of room to put towards your portfolio; however, there’s a lot you can do with that money if you look for the right investment.

Bombardier

Bombardier (TSX:BBD.B) is an obvious choice for investors who are willing to take on a bit of risk, while potentially benefitting from huge rewards. The Montreal-based manufacturer of regional airlines, business jets, and public transport equipment has had a tormented history in the last two decades, but there is some hope from analysts about its future outlook.

At the turn of the millennium, Bombardier stock had passed $25 per share, and since then it has plummeted to where it trades at writing at $2.22 per share. That recent dip has come from disappointing quarterly results, and the company is now in sell-off mode, getting rid of any non-essential asset it can. This included the Mitsubishi Heavy Industries regional jet program for US$550 million, with the sale also including US$200 million worth of liabilities assumed by Mitsubishi.

This is just one example of how Bombardier has been focusing on putting cash in its pockets to bring down its debt burden. After the second half of 2019, the company expects its quarterly results to improve, with the worst behind it. With new management on board and more cash coming in, I expect the stock to start trending upwards soon, and fast.”

Gino :drinkers:
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Last edited by Gino Under on Wed Jul 10, 2019 4:27 am, edited 1 time in total.

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Re: Bombardier sells regional jet program to Mitsubishi

Post by rookiepilot » Tue Jul 09, 2019 4:38 pm

https://www.cbc.ca/news/canada/thunder- ... -1.5206009

Rail division is doing just dandy, too.

"A federal government source pegged the number of workers expected to be laid off at 550 — half of the 1,110 who who work there."

"Two major contracts — one producing streetcars for the Toronto Transit Commission and one producing bi-level rail cars for the Metrolinx Go Train service — will come to an end at the end of 2019, and so far, no additional contracts have been signed, Van der Wee told CBC News."

Unprecedented growth both in air travel and in expansion of transit services.
And BBD can't thrive in either area. That points straight to management.

My opinion on this company has not changed.
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Re: Bombardier sells regional jet program to Mitsubishi

Post by Gino Under » Wed Jul 10, 2019 7:33 am

Well, I seem to recall a hostile ‘pissing contest’ between Bombardier, the TTC, and GO Transit. I guess they showed Bombardier who’s who. Eh?
In simple English, there’s a price to be paid for contact cancellations, no matter whose corner you’re in.
Now it’s time for the politics of taxpayer accountability.
Good game.

Gino :partyman:
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Re: Bombardier sells regional jet program to Mitsubishi

Post by YYZSaabGuy » Wed Jul 10, 2019 8:41 am

Gino Under wrote:
Wed Jul 10, 2019 7:33 am
In simple English, there’s a price to be paid for contact cancellations, no matter whose corner you’re in.
Now it’s time for the politics of taxpayer accountability.
https://www.thestar.com/news/gta/2019/0 ... tcars.html. Assuming the Star's coverage is accurate, it seems pretty clear who wrote the cheque for the TTC streetcar fiasco - and it wasn't the TTC:

"The contract for the order, which the TTC placed in 2009, allows for the transit agency to claim up to about $50 million in liquidated damages from Bombardier. But a source with knowledge of the dispute told the Star the agency didn’t seek the full amount and instead claimed closer to $35 million."

I'm not sure why taxpayers should have any hesitation about holding suppliers accountable - that's why contracts specify performance standards and penalties for failing to meet them.
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Re: Bombardier sells regional jet program to Mitsubishi

Post by rookiepilot » Wed Jul 10, 2019 9:50 pm

Why is this CEO getting more money, and indirectly funded by the taxpayer, than almost every single member of the S&P 500 -- virtually all of whom are highly successful companies, that make loads of actual profits?

I'm confused.
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Re: Bombardier sells regional jet program to Mitsubishi

Post by YYZSaabGuy » Thu Jul 11, 2019 3:04 am

rookiepilot wrote:
Wed Jul 10, 2019 9:50 pm
Why is this CEO getting more money, and indirectly funded by the taxpayer, than almost every single member of the S&P 500 -- virtually all of whom are highly successful companies, that make loads of actual profits?
He's not. Bellemare's 2018 compensation was unchanged at US$10.63 million. That puts him at roughly 285th in the S&P 500 compensation tables.
Note that I'm not defending that compensation level as appropriate, nor defending BBD as particularly deserving of government funding.
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Re: Bombardier sells regional jet program to Mitsubishi

Post by rookiepilot » Thu Jul 11, 2019 6:08 am

Gino,


When you invest listening to the Motley Fool, well, it isn't named that by accident......

There's a new nickname for long term Bombardier investors.
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