Bombardier Stock: TSX:BBD.B

For discussion of Bombardier Rail. Their official web-site is here: Bombardier Transportation

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Bombardier Stock: TSX:BBD.B

Post by Jeff Smith » Sat Jul 13, 2019 4:22 pm

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Jeff Smith
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Re: Bombardier Stock: TSX:BBD.B

Post by Jeff Smith » Fri Jul 19, 2019 11:57 am

https://www.fool.ca/2019/07/12/3-stocks ... net-worth/
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Rail rebound
With a price per share of just $2.20, transportation giant Bombardier (TSX:BBD.B) is next on our list of penny stocks.

Management continues to downsize operations in an attempt to improve profitability, but shareholders are growing increasingly concerned. On the bright side, Bombardier’s rail car is turning around, having landed several major contracts in 2019 alone.

Most recently, Bombardier signed a contract to provide 74 additional double-deck coaches to Israel Railways.
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Jeff Smith
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Location: MP 67.2 Georgia Southern Railway

Re: Bombardier Stock: TSX:BBD.B

Post by Jeff Smith » Sat Aug 03, 2019 3:38 pm

Struggles in rail division: Yahoo Finance
Bombardier stock drops after reporting quarterly loss and struggles at rail division

Bombardier Inc.’s stock fell as much as 22 per cent on Thursday as the company reported a quarterly loss and announced it will invest hundreds of millions into its struggling transportation division.

The Montreal-based company also adjusted some of its 2019 financial targets ⁠— including its forecast for earnings before interest and taxation (EBIT) ⁠— due to the rising costs tied to several key rail projects. Bombardier announced that it will invest between $250 million and $300 million into its transportation division to ensure those late-stage rail projects are completed and delivery schedules are met. The investment will include adding manufacturing and engineering capacity, the company said.

Bombardier executives sought to reassure investors and analysts on Thursday that the company will overcome the challenges at Bombardier Transportation (BT) and achieve the goals outlined in its five-year turnaround plan.
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Jeff Smith
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Re: Bombardier Stock: TSX:BBD.B

Post by Jeff Smith » Sat Aug 03, 2019 4:17 pm

And an unfavorable article: Fool.ca

The debt does pay a nice yield at 7 7/8% though.
Warning: Is Bombardier (TSX:BBD.B) Stock Going Back to a Buck?
...
Bombardier managed to find buyers for US$2 billion of new debt at the beginning of 2019 to replace notes that were coming due. The timing was fortuitous for the company, given the meltdown in guidance we have seen the subsequent months. Bombardier has more than US$3 billion in debt coming due in 2021-22, and it might have to pay more than the 7.875% it had to offer on the debt issued in March.
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Bombardier burned through another US$429 million in cash in the second quarter, bringing the negative cash flow to US$1.5 billion in the first half of 2019.

On that pace, its June 30th cash position of US$3 billion will be wiped out next year. Net proceeds from the US$550 million sale of the CRJ program will provide a short-term cash infusion, but things could get tight if revenue doesn’t improve. Management is running out of assets to liquidate to keep the company afloat.

Bombardier received US$2.5 billion from Quebec, and the province’s pension fund the last time the company faced a cash crunch in late 2015. By early 2016, the stock was down to $0.80 per share.
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