Stay away from Bombardier, says Venator Capital’s Osten

Investors would be wise to stay away from Bombardier (Bombardier Stock Quote, Chart, News: TSX:BBD.B), says one fund manager.

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.