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Bombardier Inc. (0QZP.L)

LSE - LSE Delayed price. Currency in CAD
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4.2600+2.4300 (+132.79%)
At close: 11:24AM GMT
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  • T
    Troy
    Excellent comments from RBC’s meetings w Bombardier mgmt:

    Highlights from investor meetings with management

    Our view: We had the pleasure of hosting BBD’s EVP and CFO, Bart Demosky, and VP Financial Planning and IR, Francis Richer de La Fleche, for a series of virtual investor meetings yesterday and last week. Key topics covered during the meetingsincluded the demand backdrop,supply chain environment, the competitive environment, and potential upside to the long-term services opportunity. Overall, we view the meetings as constructive to our positive view on the shares, and we continue to see BBD as representing attractive risk/reward at current levels.

    Key points:

    Demand environment shows no signs of slowing down. Demand for private aircraft and private flying remains broad-based and robust, driven by increases in aircraft utilization and growth in new customers. On this, management highlighted that fleet operators are flying their aircraft significantly more now (in many cases well over 1,000 hours per year) than they were pre-pandemic, while the penetration rate of customers who can afford to fly private has now surpassed pre-COVID levels. Additionally, BBD noted that the pricing environment has also been strong (though no Y/Y change provided, as it is not a number the company discloses) given the strength of the current demand backdrop.

    Not considering equity raise. During the meetings, management put to rest any concerns around a potential equity raise and clarified that commentary on the Q3 call regarding its intent to be “opportunistic in our future capital market transactions” was in reference to future debt raises/ refinancings, not new equity issuance. We believe that concerns around a potential equity raise served as amoderate overhang on the stock following Q3 results and therefore view this recent commentary as alleviating a key near-term concern.

    BBD less impacted by supply chain issues. Management noted that BBD has been able to successfully navigate the ongoing supply chain challenges due to: 1) long lead times (typically 9–12 months) on aircraft parts orders, which give suppliers the time they need to get product ready; and 2) a “north-south” supply chain that spans primarily Canada-US-Mexico, thereby reducing logistical challenges with current suppliers. Overall, we view the company’s supply chain position as a competitive advantage that further supports our high conviction around management’s ability to meet near-term delivery guidance.

    Capital structure. Given progress made on debt reduction and cost-savings initiatives(which management noted are tracking nicely ahead of forecast), BBD believes there could be upside to its FCF profile in the near term and reiterated its target for positive FCF on a sustained basis beginning next year. In addition to this, we see furtherimprovementin the capitalstructure and continued deleveraging as key drivers behind the potential narrowing of the current valuation gap (~28%) vs. peers

    Note from LB1: Above is the summary; I add the complete comment regarding the supply chain:

    Supply chain and operations

    BBD less impacted by supply chain issues. Given how topical global supply chain/logistics challenges have been recently, this was a key question that came up during the meetings as investors were looking to better understand BBD’s specific supply chain situation. Overall, management highlighted that BBD has not felt a material impact from supply chain challenges, and that the company has been able to successfully manage the minor issues that it has encountered. The primary reason for this is the long lead times that BBD provides its suppliers once an aircraft is ordered, which gives them plenty of time to respond to the company’s demand/needs and successfully ensure that the required parts/products are delivered on time. Management also highlighted that because its supply chain is primarily “north-south” and spans Canada-US-Mexico, the logistical/transportation issues impacting its suppliers have not been as pronounced as other companies that source goods from overseas have experienced. Taken together, we we view the company’s supply chain position as a competitive advantage that further supports our conviction around management’s ability to meet near-term delivery guidance.
  • S
    SlippinJimmi
    it doesn't matter how much upside there is, the only way this stock will lift off is if Bombardier is able to sell aircrafts. Without sales nothing else matters.
  • J
    John
    Demand for private jets is accelerating which works great for BBD.B. Their aircraft are efficient and when you look at the cost of private travel vs. business class, there is not much of a difference when you have a few people travelling. We have seen a selloff or should I say a massive correction from the high's! At these prices, you are getting a bargain of a deal, not to last much longer in my opinion. Keep holding at these prices and we will get a much faster rebound vs. giving it away at the low valuation currently.
  • p
    perfect
    I work at Pearson in the private aircraft section of the airport. Never seen it this busy. I see the construction of the new Bombardier factory being built. Nothing to worry about BBD-B.TO , If you want quick money buy crypto or get a job.
  • F
    Frank
    new article in the Wall Street Journal , Nov 27, Private Flying Takes Off, Boosting Demand for Business Jets
  • O
    Oohay
    If it ends the year at $ 2.50 - $ 3.00 most shareholders would be satisfied with that and call it progress and gladly wait another year to see $ 6.00 per share.
  • T
    Troy
    Plane deliveries are rocking now (see the StockHouse bullboards where some folks keep track of them). This should help investors that were worrying the company would not meet their Q4 delivery goals. No guarantee, of course, but the pace has dramatically picked up, like the last two years’ Q4.
  • T
    Troy
    CNBC article says omicron variant producing mild symptoms so far, per doctor.

    So, a rebound in travel-related stocks seems reasonable, of course, I’m thinking.
  • B
    BA100
    As reported in the Globe and mail insider transactions. That’s encouraging Folks. Don’t despair accumulate:
    - “Bombardier Inc. (BBD.B-T)
On Nov. 17, president, chief executive officer and director Éric Martel invested $174,000 in shares of Bombardier. He purchased 100,000 shares at a cost per share of $1.74.”
  • S
    Simi
    someone purchased one million shares.
    good news 👏 coming.
    $20 by end of this year .
  • J
    Jack
    Some one bought 1.05 million today, it is first time in recent weeks... Good start
  • J
    John
    Markets are calling for a Santa Claus Rally...hopefully this translates to a nice pop back above to the recent highs we have seen into new 52 week highs before the end of the year. Optimism in North America seems to be present as we keep battling the Covid-19 and people are starting to get vaccinated so they can travel and visit restaurants. Europe on the other hand is hampered by anti vaccine people who are keeping the health care systems there in high demand. Good luck to all and hope we see some great movement forward for all the longs on this stock.
  • J
    Jason
    We need some good news to drive this back up.
  • M
    Mathieu
    Institutionals hopping back in the boat at this price... shares up.
  • T
    Troy
    When Covid first hit, a lot of flyers moved from commercial flights to private, helping Bomber. Expect this new variant, if it ends up being material, to do the same thing.
  • J
    Jamie
    can somone explain the net income in q1. it wasnt from revenue. it was their only profitable quarter.. Did it come from investments?
  • H
    Henry
    Have a feeling that it will pop back up very soon ! Time to load it.
  • i
    isam
    Did any one heard any news from Bombardier head office