BOMBARDIER INC. - Toronto symbols BBD.A $4.25 and BBD.B $4.23

BOMBARDIER INC. (Toronto symbols BBD.A $4.25 and BBD.B $4.23; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.8 billion; Market cap: $7.6 billion; Price-to-sales ratio: 0.4; Dividend yield: 2.4%; TSINetwork Rating: Average; www.bombardier.com) had commitments in place for 382 CSeries planes, including 148 firm orders, at the end of 2012. If the buyers exercise all their options, these deals would be worth around $23 billion U.S. That’s equal to 1.4 times Bombardier’s 2012 revenue of $16.8 billion U.S.

Porter Airlines recently ordered 12 CSeries planes, with an option to buy 18 more. The deal is conditional on Porter winning approval for its plan to extend the runway at the Billy Bishop Toronto City Airport in downtown Toronto. The airline’s current fleet of 26 Bombardier Q400 turboprop planes flies out of the airport now, but the runway extension would be needed to handle the CSeries jets.

As part of the agreement, Porter also has an option to buy six more Q400s. If the airline exercises all of its options, the entire deal would be worth $2.3 billion U.S. Bombardier will deliver the CSeries planes in 2016.

The stock trades at just 10.8 times the $0.39 U.S. a share that Bombardier will probably earn this year. The $0.10 (Canadian) dividend yields 2.4%.

The subordinate-voting class B shares are the better choice because of their slightly better liquidity and higher dividend yield.

Bombardier B stock is a buy.

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