Brandon Osten, President and CEO of Venator Capital was on BNN’s “Market Call” and talked about the Canadian aerospace player.
Osten says he has never really been a big fan of the Quebec-based company.
“We haven’t seen a tremendous amount of value creation over a fairly long period of time,” he explains.
Osten says Bombardier plays to a larger theme in his current investment philosophy: he isn’t bullish on global infrastructure spending.
“They’re always coming out with a great new plane or train, but it just hasn’t been a name that we have liked. You’ve got a beta running close to two and you are not being rewarded for the volatility,” he says.
Investors this week had been anticipating the maiden flight of Bombardier’s delayed C-Series. The launch of the C-Series, which is the first new narrow-body aircraft to debut in more than twenty years, was delayed for the better part of a year. Its first trip is now also delayed, due to inclement weather in Quebec.
“Optimal weather is preferred,” said Bombardier spokesperson Marianella de la Barrera. “It’s just one less obstacle to have to worry about when you’re going up for the first time. At this point … we’re at the mercy of Mother Nature.”
Shares of Bombardier, meanwhile, have rallied since last autumn. The stock closed at $3.08 last November 23rd, and at press time was down two-cents on the day, to $4.99.
At Cantech Letter we prize independent journalism like you do. And we don't care for paywalls and popups and all that noise That's why we need your support. If you value getting your daily information from the experts, won't you help us? No donation is too small.
Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.
Following the company's fourth quarter results, Eight Capital analyst Kiran Sritharan has maintained his "Buy" rating on Sabio Holdings (Sabio… [Read More]
Following the company's first quarter results, Desjardins analyst Benoit Poirier has raised his price target on Bombardier (Bombardier Stock Quote,… [Read More]
Following fourth quarter results he describes as "stronger than expected", Beacon Securities analyst Russell Stanley has raised his price target… [Read More]