BOMBARDIER INC. - Toronto symbols BBD.A $3.90 and BBD.B $3.76

BOMBARDIER INC. (Toronto symbols BBD.A $3.90 and BBD.B $3.76; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.7 billion; Market cap: $6.4 billion; Price-to-sales ratio: 0.3; Dividend yield: 2.6%; TSINetwork Rating: Average; www.bombardier.com) has received a firm order for 20 of its Q400 turboprop planes from WestJet Airlines Ltd. (Toronto symbol WJA); WestJet is a recommendation of Stock Pickers Digest, our newsletter that focuses on aggressive investing.

WestJet will use these planes for its new regional airline, which will serve smaller Canadian cities. Bombardier will begin delivering these planes in 2013.

The order is worth $683 million (all amounts except share price and market cap in U.S. dollars). If WestJet exercises all of its options to buy an additional 25 planes, the entire order would be worth $1.6 billion. That’s equal to 9% of Bombardier’s 2011 revenue of $18.3 billion.

Bombardier is a buy. The class B shares are the better choice because of their better liquidity and higher dividend yield.

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Vernon Jones

Vernon is a managing editor at TSI Network, working with a team of analysts and reporters to develop editorial content focused on Canadian investors. An award-winning journalist, Vernon has years of general and business reporting experience at five of North America’s major dailies, including the Globe and Mail, Wall Street Journal and the Chicago Sun-Times. He was also business editor for one of North America’s oldest newspapers. He led the development of ten national business-to-business magazines, including Wealth Professional and Insurance Business Canada. The Toronto native is a graduate of Toronto Metropolitan University’s school of journalism, and holds a master’s degree from the University of Illinois at Urbana-Champaign.

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