Why are bombardier shares so low

They have too much debt for their business model. Before at least they were more diversified but getting rid of their metro car division makes it operate in a narrow space. It is a risky bet. The C-Series put them in a massive hold. It has really been bankrupt for year, if not for continual government bailouts. Get out of this position. Think of quality US names right now. It's no longer investment grade, but a trading stock.

Too much has fallen apart, like the jet division being sold to Europe. There are so many balls in the air, like a new untested management team. It is a poorly managed company, highly leveraged, in financial distress and he would not own any part of it, not common, not preferreds, not the corporate bonds not even the most senior most ones.

It is not out of the question that this company goes bankrupt. Since , they have had negative free cashflow. They have been unable to generate enough cashflow to cover capital expenditures.

Things have gotten more expensive along the way and the debt load is weighing down. Most of it is coming due in the next 3 years.

They have sold off most assets that they could, and they may sell off their private jet business. However, it will not be enough to cover the debt load. He would look at the bonds if you want a Bombardier but he wouldn't be a buyer.

They're talking to Textron to unload their jets division, which means they will make only trains. But their trains are lemons; just ask Toronto, London and New York which openly complained about the poor quality. He sees no upside in BBD, and they carry massive debt. A hole. Will they sell their train or business jet division? He sold this a long time ago after they kept failing to build a plane and increasing their costs. He doesn't know what they'll sell.

Investors have a sour taste over the company, which lacks credibility on the street. It's been a disaster for so long and he's about to retire.

Problem are the huge government subsidies, lacking efficiency yet capital intensive. Managers have never been straight shooters. Not a fan. Was making lower highs. Totally avoid it unless it shows some positive moves, and these aren't in sight. He can't say enough bad about this company on so many fronts. He thinks the company still has a ways to go to prove it can make deliveries. Overall, people have been disappointed with this company for some time.

The company must get back to a sustainable level of profitability -- something he does not see happening soon. A tempting stock. In some ways, it has turned around. The horizon has cleared to a degree. The troublesome aviation side has been sold off. Their subway and train business has had problems recently. Looking at the company, things should get better but this situation has already seen.

He is one of the few to think this could be a speculative buy. They have two viable global business lines trains and jets.

Their margins are beginning to improve. It is being sold off right now for tax loss reasons. He sees them being cash flow positive next year which could create a windfall. Every taxpayer is invested in this one, he laughs. Technically it tried to break out to the upside, but it failed.

He would put his money elsewhere. It is dead money right now. He avoids it due to volatility. It's been a weak performer this year and the news isn't getting better. Also, there is a growing inventory of used jets on the market, which will pressure new jets that Bombardier makes. The issue is that there is a build cycle and lag. There is also the question of delayed deliveries. He wouldn't be a buyer right now since it reminds him of GE.

He would take the tax loss and find other opportunities. Other than for short term traders, it should be avoided and always should have been. It is an interesting play here. One would need to understand the fundamentals which he does not focus on. Looking at the chart, there were issues and now a bottom is developing.

He would avoid it. It is completely speculative on a turnaround. Can they cover their debt payments? Don't touch it. They sold off most of the products C series they can, like the Blue Jays selling off their stars, left with low-margin products. Meanwhile, you still have the same nepotistic, incompetent management of questionable morality in charge. It amazes him. Hopes the government stops subsidizing BBD, but an election is coming. It's cyclical and a heartbreaking stock with so many politics involved.

Given volatility he will take some profits sooner than later. Long-term could be challenging. At least worth looking at.

Bombardier bonds Don't buy one high-yield bond. Bombardier has long had negative cash flow that they haven't changed in years. A poorly managed company that struggles to deliver on its products. There's no end to their problems.

BBD needs to reduce its huge debt and get the family out of ownership, though it's not possible now. It also needs to get rid of its dual-class share structure. A company that he really tried to like. There is a trust deficit. There is a potential for an upside. He definitely wouldn't be adding here. They've sold off some of their businesses and are left with the core.

They rely on their business jet. They are fairly levered and isn't in a rush to buy. It's fairly or over-valued now. How does this sector behave in a recession? It's a high-growth cyclical stock, so it will underperform during volatility and outperform during market strength.

Yes, there's big upside here, but also great volatility. Very risky. BBD is fine long term given a constant flow of contracts. BBD should be much higher. It'll come down to BBD executing and meeting targets, but there are ingrained cultural issues here.

But people extoll its virtues. It is cheap, but she's not a fan of value. If you want to trade it, go ahead. But it's not a long-term hold. It is a good day today. It has been a bad 6 months. He has been short it. No cash flow or return on equity. They have too much debt.

They effectively sold their airplane division. He looks for companies with good balance sheets and strong margins. He does not see this as a good margin business and would rather look for more quantifiable investments. This company has never really made money. The time to buy is when they are in real trouble, because the government will always help them out. It is really a work creation strategy for the government in Quebec. It never makes money.

He would trade it, but not own it long term. He thinks it was an overdone situation. They have a history of disappointing investors over the years. We have a significant seasonal period coming up. It is on track to meet its targets of free cash flow. Yesterday's announcement with New Jersey transit adds to the tailwinds. He is looking at it. It has been on his watch list for quite a while.

They made the same mistake as before when they ran up debt. They are selling off things that will hurt them. They don't seem to care that much about Canada now. Governments may be less likely to feed them in the future. It could be a good buy later on. He would rather sit back and watch it. Was following an uptrend, went parabolic, and then fell right out of bed and has continued its waterfall decline.

It's like a lot of other stocks, but more of an aggressive breakdown. To him, he has less confidence in an immediate turnaround. He'd like to see a base and for it to go sideways for a while. He's not interested now. It is a risky name. They have dramatically improved their balance sheet. An asymmetric bet in terms that a lot of potential upside if there is no recession and they execute and not much downside if there is a recession. Since , their management has delivered on promises, though last quarter BBD's cash flow had a bad hiccup.

Investors punished them. Also the US trade issue hurt them. Beware: BBD carries a lot of debt and we're seeing rising interest rates. He still believes in it. Too many governments involved for them to let it go. Way oversold. Would look to buy it here. It does not have the direct oil price exposure that an airline has. They are ramping up for new contracts and are spending money they don't have.

It is one of his least favourite stocks in the Canadian universe. There is not a huge growth potential. They've gotten out of some businesses, but they still have their business jet, plus another one coming on. But the transit side of their business continues to disappoint. BBD warned that they will miss margin targets in their transit production, and said their free cash flow is below expectations.

They need cash flow because they carry debt. She'd rather buy a peer. Today's event is BBD. The biggest story is that they are a money pit, taking tax dollars over the long term.

Governments just keep throwing money at it over and over. With all the money put into it, where did all the money go and what did tax payers get for it.

Their turbo prop is being sold. You have business jets, part of the 'C' series and the transportation business. Every business they are in is political and they just keep bringing the revenue in. This is a trading stock and not an investing stock. A trading stock, not a long-term hold. Still no clarity about what Airbus is doing. Caught in the current pullback. Get a good position and throw the dart.

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