Topic: How To Invest

The Successful Investor Hotline – Friday, October 20, 2017

Article Excerpt

BOMBARDIER INC., Toronto symbols BBD.A $2.85 and BBD.B $2.84, is the world’s third-largest maker of commercial aircraft, after Boeing (No.1) and Airbus (No. 2). It’s also a leading maker of commuter trains. The stock jumped 20% this week after the company announced a new alliance with European aircraft maker Airbus SE. Under the terms of the deal, Airbus will acquire 50.01% of the joint venture company that makes and sells Bombardier’s new CSeries passenger jet planes. Bombardier will then hold 31% of that venture (down from 62%), with the Quebec government owning the remaining 19% (down from 38%). The current owners will not receive any cash from Airbus. However, they feel Airbus’s manufacturing expertise and large client base will help spur CSeries’ sales. The company will continue to make those planes at its plant in Quebec. However, Airbus will manufacture some components at its plant in Alabama. That should help Bombardier avoid new tariffs of 299.45% on CSeries planes imported into the U.S. The…