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Bombardier Stock: What You Need To Know For 2021

Bombardier Stock: What You Need To Know For 2021

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Bombardier Stock

Let us just cut to the chase Bombardier is not a company a generalist investor should chase after. I don’t mind buying distressed companies, and certainly do not mind being a contrarian, but this is not the company to jump into. If you feel that there is optimism in travel, and that we have dealt with the financial concerns prior to COVID-19 19 and that we have resolved the economic disaster this event has caused then perhaps this is the turnaround play for you. I would urge anyone considering it to be a strong analytical minded person that has invested in distressed companies in distressed times for all other investors this is not a company to consider. You would be far better suited investing in other innovation or mining which will support the massive shift that is being encouraged. There are far better investments for high risk tolerance investors.

The company was the star of the Canadian exchange for a couple years There were some strong highlights with its partnership with Airbus with the CSeries program on 16 October 2017, That deal was to bring 6,000 new 100-150 seat aircraft over 20 years. That next Spring, in July 2018, Airbus acquired a 50.01% majority stake, Bombardier keeping 31% and Investissement Québec 19% which meant the top of the stock. It was a sharp fall from there and when COVID-19 19 hit it brough significant decline.
The list of bad news over the past year is long with the stock losing 80% of its value since the start of the COVID-19 event. This is by no means a full account of what has occurred but here are some news highlights that speak to the situation over at Bombardier.

The list of bad news over the past year is long with the stock losing 80% of its value since the start of the COVID-19 event. This is by no means a full account of what has occurred but here are some news highlights that speak to the situation over at Bombardier.

  • Bombardier Inc. says it is concerned about a new report that links it and other companies to the evident forced labour of Muslim minorities in China. The Australian Strategic Policy Institute says” factories that claim to supply products to at least 83 global brands – from Apple to Zara, Nike and Samsung – are exploiting more than 80,0000 Uighur Muslims under conditions that strongly suggest forced labour.”

 

  • The latest news regarding Bombardiers aerostructures business to Spirit AeroSystems Holding Inc: Bombardier Inc. says it will receive US$275 million in cash down from the US$500 million in cash that was first announced last year.

 

  • Bombardier Inc. has reached a US$8.2-billion deal to sell its rail business to French rail giant Alstom SA, narrowing the Quebec company’s focus to business jets while casting off its largest division to help pay down US$9.3 billion in debt.

But not to make it all negative and the contrarian investor:

On Nov.19/202 The company announced a joint venture to build 112 new Chinese standard high-speed train cars. It is a small victory but in all things in life it takes small victories to have large ones.

Overall, this is not a stock for a generalist investor. There are plenty of other opportunities which have stronger pathways to success. If you are interested in innovation you could certainly look at big data, blockchain or certainly the battery energy or electric vehicle market which as been on a big trend latterly. Companies like NIO, Exro Technologies and Solo have had incredible growth lately and share a vision of a green and electric future.

Learn about a company I am really excited about - Vanadium Corp

Why is bombardier stock dropping?

Bombardier Stock in the past years have been disastrous for additional outlays of as much as $300 million are needed to complete late-stage train projects and meet delivery schedules, 

What is wrong with Bombardier stock?

The biggest problem facing Bombardier Stock right now is its rapidly increasing net losses. In its most recent quarter, the company lost $0.74 per share, down from a $0.02 profit in the same quarter a year before. The loss was largely due to a “special item” (impairment on ACLP investments) that cost the firm $1.5 billion.

Will bombardier stock recover?

After a tough 2020, Bombardier should be back on the path of growth in 2021. Revenue is expected to grow by 6.7% to $14.7 billion, while earnings per share are estimated to increase by 66% to -$0.17 next year

Will Bombardier stock go bankrupt?

It is unlikely the company will go bankrupt with its strong government ties. It is possible that its assets will continue to be sold off. Bombardier has sold its aerostructures business to Spirit AeroSystems and its rail to Alastrom SA. The entire sector is in duress with COVID-19 19 and certainly there is little optimism that countries will stop lockdowns until whatever criteria they are wanting has been established.

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