The Successful Investor Hotline – Friday, February 13, 2015

Article Excerpt

BOMBARDIER INC., Toronto symbols BBD.A $2.69 and BBD.B $2.58, fell 12% this week after announcing several moves to improve its struggling aerospace division. It will also suspend its dividend and issue new shares and debt to shore up its balance sheet. As part of the plan, Bombardier’s chief executive officer, Pierre Beaudoin, will step down and become executive chairman. Alain Bellemare, the former CEO of United Technologies, will take over as CEO. (United Technologies is a recommendation of Wall Street Stock Forecaster, our newsletter that focuses on U.S. stocks.) Bombardier now says its new CSeries passenger jet will cost $5.4 billion to develop, up from its earlier forecast of $4.4 billion (all amounts except share prices in U.S. dollars). After several setbacks, it expects to begin deliveries by the end of 2015. Meanwhile, Bombardier’s revenue rose 11.9% in the three months ended December 31, 2014, to $6.0 billion from $5.3 billion a year earlier. The aerospace division’s revenue (56% of the total) gained…