Bombardier, Inc. (TSX:BBD.B) has taken investors on a bit of a wild ride this year. It was looking like it might be one of the top performers on the TSX this year after hitting over $5 a share back in the summer. However, with news that it would be cutting staff and trying to reduce costs as it restructures its operations, investors started to panic. The stock would go on to dip below $2 a share before mounting a recovery back to $2.50 as of Thursday’s close.
The problem with Bombardier is that it has been plagued by many issues over the years and it’s been hard to find a good reason to invest in the manufacturer. It has a bad reputation with some customers and that has cost the company sales. I also didn’t like its move to get rid of half of its C Series jets for effectively nothing in return. To me, it suggest that the company is poorly managed, and that’s not a stock that I’d want to invest in.
With barely any profit and declining sales, Bombardier is not a good option for value or growth investors. The only real play here is a speculative one, for traders that see an opportunity to play the ranges, as evidenced by the stock’s 10% bounce back in price yesterday. However, this makes it a dangerous stock to buy as it could see a lot of volatility in the weeks to come.
As bad as the TSX has been lately, Bombardier hasn’t been any better. Investors would be better off putting their money elsewhere.
This article provided by NewsEdge.