CapGoodsAlpha's  Instablog

CapGoodsAlpha
Send Message
Brian has earned recognition from the Institutional Investor All-America Research Team, Wall Street Journal All-Star Team, Starmine Best Brokerage Analysts and Greenwich. In over 15 years of analyzing the industrial sector, Mr. Langenberg has built a proprietary data and knowledge base... More
My company:
LANGENBERG & COMPANY
My blog:
TheFirstShift
  • Bombardier: This CANNOT Be Good..... 2 comments
    Jul 23, 2014 5:53 PM

    Situation:

    Bombardier just announced a new organizational structure of four segments by splitting Aviation into three units - Business Aircraft, Commercial Aircraft, and Aerostructures and Engineering Services.

    • Aerospace President & COO Guy Hachey is "retiring" at age 59 - with the biggest product launch of his career (CSeries) underway.
    • The "A&ES" business does not yet have a business leader.
    • A detailed implementation plan "is to be developed" over the next few months to be implemented by January 1, 2015.

    Our view:

    • This cannot possibly be good.
    • The stock likely trades down tomorrow.
    • Faith in management execution was already low.

    Recommendation: Value investors should buy the dip. Further patience will be required.

    • Bombardier is not the standard bearer for management execution and delivering results. We get it.
    • Bombardier is a publicly traded family owned business and its structure prevents adult supervision from activist investors.
    • But they make very good aircraft and the CSeries will be ultimately successful.
    • We can get to a 3-5 year target price range of C$11-21 per share from today's close of C$3.74.

    Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Back To CapGoodsAlpha's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (2)
Track new comments
  • bd4uandu
    , contributor
    Comments (2074) | Send Message
     
    It's been on my watchlist for a bit. Thanks for your thoughts.
    23 Jul 2014, 09:58 PM Reply Like
  • CapGoodsAlpha
    , contributor
    Comments (62) | Send Message
     
    Author’s reply » My pleasure
    23 Jul 2014, 10:37 PM Reply Like
Full index of posts »
Latest Followers

StockTalks

  • $GE, $ELUXB - DOJ suit to block deal. Normally I would chalk this up to leftist administration. Given Alstom hold up perhaps....payback?
    Jul 1, 2015
  • $GE - happy the finance assets are going, but Alstom deal is SERIOUSLY at risk. Market doesn't care yet. But it should. HOLD maintained.
    Jun 12, 2015
  • $DOV - just trimmed another $0.10 from '15 and '16. Now at $4.15, $4.65 respectively. Too cheap to downgrade.
    Apr 21, 2015
More »

Latest Comments


Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.