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Opinions Paul Taylor
Bombardier Inc (B)BBD.B.TODON'T BUYJun 23, 2015
Paul TaylorStock price when the opinion was issued
As of Jun 12, 2026. Market Open.
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He's been in business for 30 years, and BBD has never been a good long-term stock. Now, it's in the right space with industrials. The stock is in the bottom of its trading range; if it breaks below that, this will probably return to $30. BBD has a had a decent run this, year the 30-year chart is a heartbreaker.
Has a research file on it, but hasn't pulled the trigger yet. Pure play on premium business jet market. Making intelligent moves such as diversifying into parts and maintenance. One concern is that ratio of order intake to sales slipped during the quarter. Bullishly predisposed to it.
He's been watching it, as it's regained momentum. Streamlined from its legacy business, now focused entirely on private aircraft. Business prospects are getting better. Private aircraft are big-ticket, discretionary. Order book could get cold if corporate profits decline. Facts have changed, he's changed his mind, and the company is now investment-grade at least.
The ‘C’ series is the key thing for the organization. There are cost overruns and they are behind schedule and then there is the order book. Business jets are still an improving environment. It is a big capital expenditure for little revenue. In rails there are specific projects, particularly in France, but overall there are a lot of question marks. You have to watch the ‘C’ series and the drain in resources.