Investment Q&A

Q: On Nov 20, 2015 you replied to Herbert "Because the Caisse's interest is directly into a subsidiary, there is not dilution in the usual sense in terms of shares issued. BBD will get capital, and simply own less of the unit. BBD has also asked the Federal government for money."

1) I am trying to understand. If BBD own less, doesn't that mean BBD shareholders will own less, get less of the revenue/earnings pie and in the end, result in some of shareholder dilution?

2) Additionally, I have to believe that with all the money this company is getting from government bodies that this will also create further dilution (unless it is money that is invested to protect jobs..) ?

Thanks.

Q: With the Caisse (Quebec)taking a .30% interest in Bombardier's rail unit, I feel the Quebec government is taking control of Bombardier with also the interest in the C series Airplane. Thus, how does this affect the shareholders, and is it a dilution of shareholders interest (shares)?

Q: With the recent news of the Quebec gov't stepping in to save the day (for a while at least), would Bombardier be worth a shot, at the moment? Probably 1 to 2 %. I'm willing to gamble, but also not crazy. Bombardier has always been the-little-engine-that-could-but-never-did, in my mind. And yet ... how I hate those Canadian companies going down, just because they're stubborn and set in their ways. Will there be enough torque behind the gov't's presence to help move the Bomber's needle? Thanks, as ever.

Q: The stock continues to fall like a stone, I'm in the red on this one, your last answer on this in July indicated you don't see bankruptcy in the immediate future and the government could possibly step in to protect bond holders if things continue to worsen.
Has your position changed on the last three weeks of news on BBD and what would be required of BBD for you to recommend it as a buy.

Q: Good Morning: I would like your opinion on how low you think Bombardier can go before the Federal or Provincial government steps in to prop them up once again?

Thanks - Brian

Q: Bombardier preferred as well as other preferreds are going down in value like a rock. Its in the fixed income part of my portfolio and I was not expecting this kind of movement, sell or hold ?

Q: Good morning on this cold winterday...hope you are all thinking warm thoughts...Bombardier suspended its dividend.( Naiive question...Is a suspension as bad as a cut?) I happen to hold a tidy sum in this stock...I bought it low, so I am wondering if I should just hang on...its train section is quite good. Do you think that they will split into two separate companies..train and plane? Your insight is appreciated as always. Thank you Tamara

Q: Can you give your outlook on "Bomber" after it has suffered the recent downdraft?

Q: Re: BBD.PR.C Bombardier Preferred
Would you consider BBD.PR.C fairly safe as an Income holding. Dividend yield is approx 7.1%. If you're not okay with this one could you please provide some alternates?
Thank you.

Q: Thinking of buying Bombardier at around $3.85. Looks like orders for its long awaited jet are on the rise. Your opinion of this as a medium term hold.

Q: I have held BBD.B for a long time. With C series in difficulty, I would like to hear your opinion. Buy, sell or hold. BK (US) and BKL.

Q: Hello - brand new to your Site and already have found valuable information to complement my investment decisions.

I have found most stocks I have been looking for however I have a couple of airline related positions which don't show up when I enter their symbols. They are CHR (Chorus) and BBD.B (Bombardier). These are longer term holds (2-5 years). Your thoughts please

Q: re-Bombardier-18 billion in sales-3.4 billion in cash. 69 billion backlog. Yet it seems to be the most poorly run company in the country. Any other company making as many mistakes as them would fire the management and replace the CEO. What is it going to take to shake up this company. I say hire Alan Mullaly from Ford. Your comments. thanks

Q: Bombardier[bbd.a]has recently had some bad news on deliveries of their planes and the price has dropped over fifteen percent. What is your opinion of this company and do you think the stock is worth holding for future gains.

Q: Do you think Bombardier is worth hanging on to, or better to take a loss & move on?

Q: Hi Peter & Co.,

You gave me a fairly bearish response to a question I had on Bombardier last year, resulting in me selling half of my position. Thanks for that, obviously I regret not selling the entire thing. They have just announced layoffs, and Canaccord Genuity has stated “We are concerned that continued cash outflows from the program could put pressure on the company’s liquidity position, possibly resulting in a dilutive equity issue,” which of course has been one of your biggest criticisms for BBD.B. Is it time for me to right my wrong and dump the remaining half position, or is most of the bad news already baked in to current price, and just continue to hold (as part of an otherwise fairly good mix of industrials)?

Thanks Team.

Q: BBD.B What does the future look like for BBD.B (Bombardier) now that they are experiencing further substantial delays in their C Series Aircraft programme?

Thanks... Alastair Allan

Q: Hi Peter and Team,
I am reviewing my portfolio for 2014.
I hold MRG.UN 5% position (down 10%)purchased as a US housing play it is not recovering although Tricon a similar play seems better suited.
BBD.B, I am also down 10% and the stock don't seem to act positively after continuous bad news on the C10 plane

I would like your opinion on my intention to sell both and your suggestions for replacements in the same categories( industrial and US home recovery.
Thanks for your excellent service.

Q: BBD.PR.B perpetual, cumulative, floating at Prime, Preferred from Bombardier
Would this preferred share be a good long term holding? With a current yield of ~5.25%, when BOC does finally increase the overnight lending rate, each quarter point increase bumps up the monthly dividend. With $20 billion on the order books, the company looks safe for paying the dividends. Please give me your thoughts.

Q: Peter and staff
Is our weakening dollar ,going to make our manufacturing industry more competitive, specifically bbd.b ? your thoughts on it .
Thanks
Cal S.