Topic: How To Invest

The Successful Investor Hotline – Friday, June 28, 2019

Article Excerpt

BOMBARDIER INC., Toronto symbols BBD.A $2.21 and BBD.B $2.20, is one of the world’s leading makers of business jets. It also owns 70% of Bombardier Transportation, a leading maker of commuter trains. The Caisse de dépôt et placement du Québec, which manages the province’s public pension plan, owns the other 30%. This week, Bombardier agreed to sell its struggling CRJ regional jet business to Japan’s Mitsubishi Heavy Industries Ltd. That Bombardier business makes mid-sized jet planes that typically carry between 50 and 100 passengers. The company will receive $500 million U.S. for the CRJ operations. As well, Mitsubishi will assume $200 million U.S. in Bombardier’s CRJ-related liabilities. To put those amounts in context, the company lost $122 million U.S., or $0.07 a share, in the first quarter of 2019. Bombardier will finish building the 42 CRJ planes already in production by the end of 2020. The sale will let the company focus on its more-profitable business jet and railcar operations. However, the stock will…